Based on BusinessDictionary.com (n.d.), accounting is “…a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm 's assets, liabilities and owners ' equity.” Accountancy is not all about numbers. It is mostly about logic. So if you get the logic of it, the operations of numbers would be easy to deal with. The problem is not everyone could get the logic of it. That is why there are people who study and focus on the field of accountancy. These people would probably end up with jobs like teaching accounting, forensic accounting, and managerial accounting. These all are accountancy professions and accountancy professions have high standard education, are important to the economy, and provide high-quality services. Thus, society perceives accountancy professions with high public value. Accountancy professions have a high standard education because not all could work on this field just when they want to. It is a very specific field even on education. Unlike in other broad courses and programs, accountancy has its own degree. Therefore, an accountancy professional must hold a degree of Bachelor of Science in Accountancy (Philippine …show more content…
Another reason why accountancy professions are seen with high public value is because it is important to the economy (Association of Chartered Certified Accountants, 2011). According to Jui and Wong (2013), accountancy professions provide financial information. Since accountancy is more on logic applied to numbers, accountants mostly handle finances. Furthermore, because they know much about finance, they could contribute or suggest in making economic decisions (Ilagan-Ame & Vicente, 2007). Lastly, knowing much about finance and economy, they would also know how to make effective strategic plans which could help with businesses and firms (Jui, and Wong
In the article Accountants Save the World by Peter Bakker, one of his casual claims is that “to address current economic crises in a systematic way, we must begin to demand a return on social and natural capital as well. ”1 As a result, Bakker felt that shareholders would not recognize a company's' social accomplishments if it is not captured in financial reports. However, it could be that shareholders do not put social capital into financial statements because they believe that the only social responsibility of business is profits, like Milton Friedman. Therefore, demanding a return on social and natural capital would be ineffective if the majority of shareholders agree with Friedman's view.
Accounting Equation Accounting equation is the basic formula in accounting. It means the foundation of double entry accounting. According to Shaun 2015, The accounting equation is: Assets = Liabilities + Owner’s Equity
Accrual accounting is an accounting method that recognizes economic events regardless of when cash transactions occur in order to measure the performance and position of a company. The general idea is that economic events are matching revenues to expenses to recognize which is the matching principle at the time in which the transaction occurs rather than when payment is made (or received). This method allows combining the current cash inflows or outflows with future expected cash inflows or outflows to give a more accurate picture of a company 's current financial condition. Accrual accounting is considered to be the standard accounting practice for most companies with the exception of very small operations. This method provides a more
“There are so many accountants but it’s so difficult to get somebody, who is a new graduate, but already knows [the job]. [Their] college education should have prepared them for that.” – Lucy Tarriela, Asst. Treasurer, Employers Confederation of the Philippines.
The business world is an area where innovative ideas meet technological advances to keep up with our fast paced society and this drives my passion to be a part of the business world. The business sector offers a variety of choices and careers which will not only allow me to follow a pathway that is tailored to my skill set but will also allow me to pursue my interest in accountancy and finance. My experience in life highlights to me the importance for an individual to be fully educated in this topic, thus enabling me to make a meaningful impact in the business world. Having completed work experience with KPMG over the summer has strengthened my desire to pursue a career in accounting. During this placement I responded to challenges set by KPMG
An accounting memo should be a one-stop shop when it comes to forming a conclusion on an accounting issue. A company would reference an accounting memo to gather information regarding the transaction, accounting evaluation, and reason the position was taken on a problem or issue. The five critical components are listed below as a guide to prepare a professional accounting memo. I. Facts & Background • This section of a research memo is used to describe all the relevant background information to fully comprehend the needs of the transaction and the accounting behind it. •
The unrealistic expectations of external users of financial statements to assume that an auditor remains totally impartial to client influence is a conclusion drawn from psychological research. The legal system forms the opposite view and has determined that external users should be able to rely implicitly on an auditor’s determination. Accounting standards have set expectations of auditor independence and neutrality. (Max H. Bazerman, 1997) The entire concept of professional scepticism and its application is the true and fair representation of financial statements to the users of these
Daw Hla and Susan, Peter Teru Says that Accounting Information System is computer-based application system, and its control and enhance the corporation of an organization. It is Managing an organization and implements the internal control system. The role of accounting information system is a crucial process. The qualitative Characteristic of any accounting information system is maintained by the sound internal control system. The primary function of AIS is assigned the qualitative value of economic events.
According to Averkamp (2016), “accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting information in various reports and analyses”. Therefore knowing how to carry out these tasks
My interest in Accounting stemmed from my optimistic expectation about career development in this field. Accounting is so important in the business world that only on the basis of accounting information, management is able to make investment decisions, and optimize internal operation. Thus, it is widely applied to every business sector. However, due to a strange combination of circumstances, I was matriculated by Biology and Medical Engineering College, instead of the Economic and Management College, in which I could accumulate the knowledge that would allow me to realize my career ambition. Changing major was not easy to operate in our university.
It is this that justifies accounting history as a crucially important academic discipline. “History, in itself is instinctive and indigenous to all of us” (Carnegie. et al, 2011), whether individuals know it or not, everyone’s decision making process is strongly based on past experiences, and the past is the key source resorted to whenever a decision is needed to be made. The same is applicable to accounting, the decisions made today in all practices and approaches are drawn from the historical developments in the accounting process, that have led the practice
Accounting courses highly depends on mathematics, so a high academic performance in accounting could be related to good mathematical ability and thereby, measured accordingly. Mathematics can be used in all financial duties necessary to keep the company operating. Likewise, accounting involves large sums of money regularly with the use of double entry record keeping. Since an accountant is responsible for maintaining records containing the business transactions, one must possess a working knowledge of bookkeeping which requires both basic and advanced math. In the public sector, an accountant must know how to perform tax procedures.
Income data (experiences, estimates of sales, fund rising, membership etc and planned activities). Data come from previous budgets, estimates, experience of others and public available statistics. I was also able to identify the main uses of accounting and these are as follow: Information All organizations need to keep records of their financial transactions so that they can access Information about their financial position, including: summary of income and expenditure, the outcome of all operations, assets and liabilities.
Financial management “is the operational and financing activity of a business that is responsible for obtaining and utilizing the funds necessary for effective operations. Thus, Financial Management is concerned with the effective funds management in the business process. Finance is interrelated functions which deals with marketing function, production function, Human Recourse function and Research & development activities of the business concern. Financial Management is concerned with the financing, acquisition and management of assets with some overall goal in minds. There are three major areas in Financial Management decision making.
Accounting information system has many functions in management and the importance. The most important is with wide-spread automatization can relate to accounting work processing. Accounting software packages have many software programs for supporting book-keeping, reporting, recording economic events or processing. Accounting software packages can support the activity of the enterprise for to update and integrated information system. Besides, the definition of accounting is as a system at the micro level that have process, procedure, rule and activities of an information system that need follow by the success of the enterprise to achieve the goals.