Introduction Keeping record of activities and expenditures is crucial in personal finance planning and could really help in managing personal finances. This paper identify what is accounting and how does it help to manage personal finance, describes products of accounting and bookkeeping procedures that are useful in personal financial planning and how personal financial software could assist in personal financial decisions. What is accounting and how does it help you manage your personal finances? 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
Financial Accounting is a field of accounting concerned with a company’s financial transactions. It uses standardized accounting guidelines to record, summarize and present the transactions to mainly external users periodically by means of Financial Statements. Creditors and other lenders like banks and other financial institutions, Government Authorities, Prospective Investors, Customers, Competitors and Regulatory Authorities are some of the External Users who may use these Accounting information for various decision making purposes. Managerial Accounting also referred to as Cost Accounting is a branch of accounting that helps in identifying, analyzing interpreting, preparing and communicating both Financial and Non-Financial information
What are the three basic financial statements, and what major information does each contain? Please explain in detail. A Financial Statement is a document for reporting business financial performance and resources. The basic three financial statements are: 1- Income statements: The Income Statement shows the revenue and expenses for specific year (period of time) to determine the company’s profit or loss by comparing the revenues with its expenses. The information listed on the income statement is mostly in relatively current dollars, and so represents a reasonable degree of accuracy.
Statement of financial position helps users of financial statements to assess the financial soundness of an entity in terms of liquidity risk, financial risk, credit risk and business risk. The amounts reported on the statement of financial position are the amounts as of the final moment of an accounting period. INCOME STATEMENT: which is also called a profit and loss account is a financial statement that measures a company’s financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenue and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically a year.
The focus of this theory is the strict order in which financing is favored. External financing is never preferred above internal financing. The pecking order theory states that external financing is too expensive, because outside investors possess less information than insiders and therefore involve more costs than necessary. Practically speaking this could imply that equity investors pay too little for a share, and that debt investors have interest rates set too high. Retained earnings are the preferred method of financing according to the pecking order theory.
There are also researches related to improvements of the algorithm that avoids some attacks on data. Rapid advances in data collection and storage technology have enabled organizations to accumulate vast amount of data. Simple transactions of everyday life such as using a cash card, credit card, a telephone monitoring system or browsing the web lead to automated data storage. In many cases, these large volumes of data can be mined for
After preparing the adjusted trial balance, the accounting cycle will continue with preparing the financial statements. Preparing the financial statements is the most important steps in the accounting cycle. Balance sheet, income statement, statement of changes in equity and statement of cash flows will be prepared in order to provide useful financial information to the external users. The income statement or known as profit and loss statement is a report that display the income and expenses of the company during the accounting period. The income statement also served to calculate the net income or loss of a company by deducting the total expenses from the total income and this calculation shows investors and creditors the overall profitability of the company as well as how efficiently the company is at generating profits from total
It consists of Customer billing statements, Sales orders, purchase Requisitions, Sales analysis reports, Register checking, Vendor invoices, general ideas, payroll information, timekeeping and inventory data, tax information. This data can be used to preparing the accounting statement and reports. (Fontinelle, 2017).Accounting Information System is used for to produce the external stories related to the financial statement, supported through routine activities, Decision Support and Planning and Control, Implementing internal control. Accounting Information roles are classified into External Auditor, Tax Accountant, Consultant and Internal Auditor, Business Analyst, Budget analysts, Financial Analyst, controller and Accounting Clerk. It is discussing the future, and current role of Accounting Information system is analyzing by accountant responsibility and financial
There are many non-business personal loans online. You can fill out a form on the site and get a response in a few minutes to the status of your loan request. The process is fast, safe and an excellent choice for people who are ashamed to go to a loan officer and ask for money. Be careful if you decide to apply for unsecured personal loans online. There are many companies located, but there are also many scams.