According to the American Institute of Certified Public Accountants (AICPA), accountants have a duty to serve the public interest and uphold the public trust in the profession. An accountant has a responsibility to his clients, his company’s managers, investors, and creditors, as well as to outside regulatory bodies.
What is the purpose served by accounting?
The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it.
Why do the general public need accounting information?
They need accounting information to assess the financial performance and position and to have a reasonable assurance that the business to whom they are going to lend money would be able to return the principal amount as well as pay interest there on.
Who are the users of the accounting information?
Accounting supplies managers and owners with significant financial data that is useful for decision making. This type of accounting in generally referred to as managerial accounting. The accounting process provides financial data for a broad range of individuals whose objectives in studying the data vary widely.
What is the job description of an accountant?
Accountant Job Description. Accountants collect, organize and track financial information for organizations. They prepare financial reports regarding revenues, expenses, assets, and liabilities for internal use by staff and to meet requirements by the government, shareholders and other external entities.
What are the different uses of financial accounting?
Plurality of Uses. Financial accounting information is used in a variety of ways by different market actors. Information is not generally tailored to any one specific group, although investors and lenders are clearly the most important to a business. After all, company capital primarily comes from these two sources.
What do you need to know about accounting?
What is Accounting? Accounting can be defined as the production of financial information. It means that accounting allows us to see things like how much money you are earning, how much you are worth, how much money you spend and where you can improve to make even more money! Why do we need of Accounting? Consider this scenario:
