...Financial and Managerial accounting are used for making sound financial decisions about an organization. They provide information of past quantitative financial activities and are useful in making future economic decisions. (Albrecht, Stice, Stice, & Skousen, 2002) The same financial data is used to derive reports for each accounting process yet they differ in some ways. Financial accounting primarily provides external reports for external users such as stock holders, creditors, regulating authority and others. (Garrison, Noreen, & Brewer, 2010) On the other hand Managerial accounting is concern with providing information that deals with the internal viability of the organization and is tailored to meet the needs of an individual organization. (Albrecht, Stice, Stice, & Skousen, 2002) Managerial Accounting addresses those aspects that relates to an individual organization return on investments (ROI). (Albrecht, Stice, Stice, & Skousen, 2002) A company’s profitability depends on periodic attention to its assets turnover and profit margin. This process is designed to support the de... ... middle of paper ... ...egulator or auditor is going to insist that a company implement a good management accounting system. (Garrison, Noreen, & Brewer, 2010) The choice of how to collect and utilize information in a company is strictly management’s decision and is a part of the company’s competitive strategy. Financial and Managerial accounting are used for making sound financial...
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...purports to present. Significant misstatements or omissions in financial statements reduce the reliability of information contained in them. Matching Concept: Matching Principle requires that expenses incurred by an organization must be charged to the income statement in the accounting period in which the revenue, to which those expenses relate, is earned. Prior to the application of the matching principle, expenses were charged to the income statement in the accounting period in which they were paid irrespective of whether they relate to the revenue earned during that period. This resulted in non recognition of expenses incurred but not paid for during an accounting period (i.e. accrued expenses) and the charge to income statement of expenses paid in respect of future periods (i.e. prepaid expenses). Application of matching principle results in the deferral of prepaid expenses in order to match them with the revenue earned in future periods. Similarly, accrued expenses are charged in the income statement in which they are incurred to match them with the current period's revenue. Timeliness of Accounting Information Concept: Timeliness principle in accounting refers to the need for accounting information to be presented to the users in time to fulfill...
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...Chapter 1 Introduction to Managerial Accounting Regardless of your major or intended career path, most of you will become managers one day. A manager has responsibility and control of selected parts of a company’s operations, or in some cases, multiple aspects of operations. Only those of you that happen to stay at the ‘bottom’ of a company, prefer never to get promoted, or never accept any responsibility for some aspect of a business, will miss the ‘management’ opportunity. Fortunately, none of you will likely fall into this persona given that you have taken the initiative to attend college. Understanding managerial accounting will help you move up the ladder more quickly, regardless of your chosen career path. How Can Managerial Accounting Help You? In any responsible business capacity, your boss and all other management levels above you will want to know how well you handle your responsibilities. To do so requires that they measure your performance. The evaluation process is similar to your perceptions in each college course in which you enroll. During your first class meeting in each course, one of your initial goals is to find out how your performance will be evaluated. In a business environment, you want to know what they expect, i.e., how they will measure your performance. While you won’t be earning letter grades in the business world, your performance will ultimately translate into promotions, bonuses, raises, reprimands, or perhaps dreaded walking...
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...Introduction to Managerial Accounting Regardless of your major or intended career path, most of you will become managers one day. A manager has responsibility and control of selected parts of a company’s operations, or in some cases, multiple aspects of operations. Only those of you that happen to stay at the ‘bottom’ of a company, prefer never to get promoted, or never accept any responsibility for some aspect of a business, will miss the ‘management’ opportunity. Fortunately, none of you will likely fall into this persona given that you have taken the initiative to attend college. Understanding managerial accounting will help you move up the ladder more quickly, regardless of your chosen career path. How Can Managerial Accounting Help You? In any responsible business capacity, your boss and all other management levels above you will want to know how well you handle your responsibilities. To do so requires that they measure your performance. The evaluation process is similar to your perceptions in each college course in which you enroll. During your first class meeting in each course, one of your initial goals is to find out how your performance will be evaluated. In a business environment, you want to know what they expect, i.e., how they will measure your performance. While you won’t be earning letter grades in the business world, your performance will ultimately translate into promotions, bonuses, raises, reprimands, or perhaps dreaded walking...
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...TECHNOLOGY RESEARCH VOLUME 3, ISSUE 1, JANUARY 2014 ISSN 2277-8616 The Impact Of Accounting Information Systems (AIS) On E-Commerce Analytical Study-Service Sector-Jordan ASE Dr. Muhannad Akram Moqbel Abstract: study examines the effect of accounting information systems for listed companies in the services sector in the Amman Stock Exchange on ecommerce using three main aspects: The presence accurate accounting information system imposes on companies that the development of its methods to handle e-commerce, The effects on accounting information systems under the E-commerce will relate to influence the components of accounting information systems and the last one is The effects on accounting information systems under the E-commerce will change the resources of the physical and human resources companies. Keywords: AIS Accounting Information Systems, Service Sector, E-commerce, Amman Security Exchange ASE, Physical Resources, Human Resources. ———————————————————— 1 INTRODUCTION THIS study examines the effect of accounting information systems for listed companies in the services sector in the Amman Stock Exchange on e-commerce. As known the service sector in Jordan is the most important sector between another sectors in (ASE) , Therefore, the need arises to pay attention to this sector to see how technological development quotient, and particularly the presence of companies use accounting information systems, and with a process of ecommerce in its the marketing organizing...
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...Financing Versus Accounting People frequently confuse the two terms of accounting and financing. The reason is that finance and accounting both deal with the financial aspect of an organization or business. The difference is how the managers in these departments deal with the finances. Accounting mainly handles examining and preparing financial records and making sure that they are accurate (Kajanová, 2011). They also have to ensure that the organization is running efficiently and that the taxes are properly paid and on time. Where as finances handles mainly strategies and plans for long term financial goals on an organization. Financial mangers base their decisions on the financial information that was gathered by the accounting department (Kajanová, 2011). That way they can make the best decision for their organization. Accounting and Finance mangers have to work together to operate an efficient and effective organization. The purpose of this paper is to compare and contrast the differences between accounting and financing. Even though both accounting and finance both handle the financial parts of different health organizations, they both handle their finances in very different ways. In accounting, the main areas of concern are keeping financial records, producing production reports, analyses and different statements, reporting all of the information to heads of departments, and occasionally watching investors and the markets (Financial Managers, 2012). In addition,...
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...HUMAN RESOURCE ACCOUNTING AND ITS EFFECT ON ORGANIZATIONAL GROWTH Human Resource Accounting plays a major part in the development and growth of any organization. It primarily identifies the aspects of the progress in the company. This department determines the direction of the organization whether to move backward or to move forward in any industry. The development of human resource accounting originated from the growing needs of the importance of human assets in the management organization. It functions as the department that monitors the people who are involved in the organizational resources. In addition, it is doing the monitoring of the development, progress in assets and revenues of the company. Another function of human resource accounting is to be involved in the improvement of company’s concepts and models in determining the cost and value of the employees in the company. The third function of this department is doing research and trial in the application of all the dimensions in the organization. Human resource accounting is accountable for the deep studies on how to contribute more marketing plans and strategies that would help in the advancement of the organization and the people. The fourth function of HR Accounting is to apply the concepts and experiments into actual implementation in the company . And, the last function is to apply new and innovative ideas and concepts as well as human resource accounting technologies...
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...TIME INTERVAL CONCEPT TIME INTERVAL CONCEPT, in accounting, requires that financial statements be prepared at regular intervals, e.g. monthly, quarterly, annually. Final accounts are prepared at the end of the accounting period ie one year. Internal accounts can be prepared monthly, quarterly or half yearly. DUAL ASPECT CONCEPT Dual aspect concept states that every transaction has two effects if there is any debit entry then there must be credit entry. This state that there are two aspects of accounting, one represented by the assets of the business and the other by the claims against them. The concept states that these two aspect are always equal to each other. In other words, this is the alternate form of the accounting equation: Assets=Liabilities+Capital Dual aspect concept is known as "Double Entry Book Keeping System". This concept was introduced to minimize the chances of error. Business Entity Concept In accounting we treat a business or an organization and its owners as two separately identifiable parties. This concept is called business entity concept. It means that personal transactions of owners are treated separately from those of the business. Businesses are organized either as aproprietorship, a partnership or a company. They differ on the level of control the ultimate owners exercise on the business, but in all forms the personal transactions of the owners are not mixed up with the transactions and accounts of the business. EXAMPLE 1. A CPA...
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...Contents Contents 1 Abstract 2 Introduction to Accounting 2 CSL Ltd 2 Accounting Concepts and Conventions 2 Realization Concept 3 Going Concern Principle 3 Historical Cost Principle 3 Materiality 4 Dual Aspect Concept 4 Business Entity Concept 5 Consistency and Comparability 5 Conclusion on Accounting Concepts 6 Reference 6 Abstract Nowadays, Accounting is much more important for people from inside or outside company to make financial decisions. Financial information can be of great help in analyzing a company’s past performance and its current financial position and provide some insight into its future prospects. This assignment focuses on the discussion of basic accounting concepts. CSL Ltd is selected as an example...
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...Table of Contents 1.1 Accounting Concepts Definition............................................................................................... 2 1.1.1 Business Entity Concept ........................................................................................................ 5 1.1.2 Money Measurement Concept ............................................................................................... 6 1.1.3 Going Concern Concept ......................................................................................................... 8 1.1.4 Accounting Cost Concept .................................................................................................... 10 1.1.5 Accounting Period Concept ................................................................................................. 11 1.1.6 Realization Concept ............................................................................................................. 12 1.1.7 Materiality Concept ............................................................................................................. 13 1.1.8 Accruals Concept ................................................................................................................. 14 1.1.9 Dual Aspect Concept ........................................................................................................... 15 1.1.10 Matching Concept .....................................................................................................
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...their company. Whether it is a small business and reporting is done by the owner or if it is a large business that has a financial department, a company needs to know if it is making a profit. Modern accounting is believed to have begun around 1494 A.D. Book keeping entered into the Unites States in late 19th century. The first accounting exam was held by and organization in 1896. Today, accounting is used throughout the world and business to communicate, buy, sell and barter with each other very frequently and therefore, International accounting principles have been developed for the entire globe (Csebfalvi, 2012). In today’s highly competitive business world the environment requires companies to create a business strategy that includes accounting. This portion of their business strategy will help them achieve their strategic goals for the organization. In 1973, the International Accounting Standings Committee came in to existence in order to establish new international standards. The International Accounting Standards Board is the committee responsible for developing International Financial Reporting Standards (Knowledge guide to international accounting standards). This firm ensures that businesses are applying these standards to their financial reports. The first recorded account of international accounting was an article by Lord Benson called The Story of International Accounting Standards. Once the IASC was established, they began to release International Accounting Standards...
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...June 14, 2013 ACCT310 Abstract In this essay I am a manager in an accounting department and would like to hire another managerial accountant. The CEO is not convinced, so I must convince him. Manager Report Accounting has two different purposes: the first is reporting for external users and other is for internal users like management. Because of this, accounting can be put into two different categories: financial accounting and managerial accounting. Financial Accounting gives us a view of the financial position of the company. It is management’s responsibility to keep the accounting records in a way that gives us the correct view of the company; it must be free from any material misstatement, which may distort the reader. In order for it to be conveyed properly, management has to follow certain rules and regulation such as GAAP, IAS, etc. Managerial accounting helps with the planning & control, as well as the decision making activities of the company. The success of the business depends on the planning and the correct decision making in keeping the facts and figures related to the situation, this is what the managerial accounting does. So, Financial Accounting is used for external reporting purpose and the managerial accounting is used for internal reporting purpose. Financial Accounting emphasizes on the financial aspect and the Managerial Accounting is the planning and decision making aspect. Most of the time, reports are created or made for management purposes...
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...Systems Nicole Ottiano BIS/219 May 31, 2011 Brian K. Davis Software Applications and Information Systems Information Systems and Software applications can be used in every organizational department within a business. Enterprise Resource Planning software, also known as ERP’s are used within companies to manage everyday business processes and operations, and can be used across every organizational department, such as, marketing, accounting, and human resources. These information systems and software applications are designed especially to help each organizational department, and its personnel to do their job effectively, and in a timely manner. Applications and Systems help manage the company’s everyday operations, as well as make it so much easier for employees, and management to keep track of the employee’s accomplishments. Additionally, in spite of the organizational department that an employee works in, whether it is marketing, accounting, or human resources, comprehending and utilizing information systems appropriately is essential to an employee’s individual achievements and to the business. Enterprise Resource Planning systems enable a company to manage all aspects of a company in any organizational department. Software Applications and information Systems in Marketing There are several types of Software Applications and Information Systems that are used in the marketing department. These certain types of Software Applications help compare and increase quality and performance...
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...Business Accounting 10 Key concepts of accounting Done by-Bemnet A.Mamo ID number-B0129FSFS0813 School of Business and Law 10/15/2013 Contents * Introduction……………………………………………. 2 Going concern……………………………………….. 3 Consistency……………………………………………. 3 Prudence……………………………………………….. 4 Accruals…………………………………………………. 4 Objectivity……………………………………………… 5 Realization…………………………………………….. 5 Dual aspect……………………………………………. 6 Materiality…………………………………………….. 7 Money Measurement……………………………. 7 Timeliness……………………………………………… 8 * Conclusion………………………………………………. 9 * References………………………………………………. 10 Introduction Accounting generally can seem to be a practical subject that would be very simple to focus on only the applications of procedures and techniques. But it is far more than just a bunch of calculations, until we can identify and interpret our production of the figures, the calculations are pointless. It also measures the works of a business in financial terms and provides various financial statements and reports for various transactions the business agrees (e.g., buying and selling goods) assumed the business. In organizing financial statements, accountants use certain fundamental concepts when constructing financial accounts and statements. Traditionally there are four main concepts; ...
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...Determining Financial Viability Accounting and finance are closely related to a certain extent in which both deal with the financial aspects of a company. Accounting and finance work together in creating “a company’s budget or working capital analysis” (Wise-Geek, 2012, p. 1). Accounting involves recording of an organizations operations of a business as well as showing the information in the outline profit and loss accounts, which demonstrates the gain or loss of the organizations throughout the year. In addition, accounting includes provisions of a balance sheet replicating the monetary positions of a business at a specific time period. It should provide clear and precise figures about the proprietary and financial condition in a specific entity. Finance is a wider view and uses information, which is obtainable in the accounting area such as “profit and loss, balance sheet, and cash flow statement” (Parikh, 2011, p. 1) to decide upon financially linked judgments, for instance how to increase funds for upcoming plans of a business. These statements provide a valuable amount of information for a company. The statistics retained in these statements assists financial directors with analyzing past performance as well as future inclinations of a business. Both accounting and finance must be used together to make effective decisions for a company therefore, finance uses past statistics from the accounting aspect to formulate future decisions. In order to determine financial viability...
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