Principles of Accounting
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Lisa Hawxhurst
ACCT205
Principles of Accounting
Unit 1 Individual Project
Professor A. Perez
A.I.U. Online
March 27, 2011
Abstract
Accounts speak a language of their very own. Having a basic understanding of this language is needed to understand what exactly an accountant does. Ethics is very important when it comes to how companies handle their accounting practices. When a company fraudulently makes their accounting reports everyone pays from the government to employees to the investors. It is important to make sure that companies keep accurate records. With the advent of the computer and software programs small business have been given a lot of help in the expense and ability to easily handle their accounting.
As an account I use a special language referred to as the “Language of Business”. This language allows an accountant to identify measure and communicate economic information to permit informed judgments and decisions. The final product of accounting information is the decision that is enhanced by the use of that information. (Norman Godwin, 2010)2
One major role that an accountant has in a company is to certify that financial information is accurate. The accuracy of this information is very important because the company uses this information to make decisions on the direction a company is to take, or whether or not make purchases or sales. Without accurate information a company can make the wrong financial decisions that could lead to loss of money for the company and investors. By using the information that an accountant provides to a business, helps that business make the maximum possible profit.
Accountants also have to identify and record any activity that will impact a company financially. These recordings include purchases, sales, the acquiring of capitol and interest from different investments that the company makes. All of these transactions are recorded in journals and ledgers.
Every transaction that has to do...
ACCT205
Principles of Accounting
Unit 1 Individual Project
Professor A. Perez
A.I.U. Online
March 27, 2011
Abstract
Accounts speak a language of their very own. Having a basic understanding of this language is needed to understand what exactly an accountant does. Ethics is very important when it comes to how companies handle their accounting practices. When a company fraudulently makes their accounting reports everyone pays from the government to employees to the investors. It is important to make sure that companies keep accurate records. With the advent of the computer and software programs small business have been given a lot of help in the expense and ability to easily handle their accounting.
As an account I use a special language referred to as the “Language of Business”. This language allows an accountant to identify measure and communicate economic information to permit informed judgments and decisions. The final product of accounting information is the decision that is enhanced by the use of that information. (Norman Godwin, 2010)2
One major role that an accountant has in a company is to certify that financial information is accurate. The accuracy of this information is very important because the company uses this information to make decisions on the direction a company is to take, or whether or not make purchases or sales. Without accurate information a company can make the wrong financial decisions that could lead to loss of money for the company and investors. By using the information that an accountant provides to a business, helps that business make the maximum possible profit.
Accountants also have to identify and record any activity that will impact a company financially. These recordings include purchases, sales, the acquiring of capitol and interest from different investments that the company makes. All of these transactions are recorded in journals and ledgers.
Every transaction that has to do...