Accountancy,
or the accounting, is the production of information about an enterprise and the
transmission of that information from those who have it to those who need it.
The communication is generally in the form of financial statements that show in
money terms the economic resources under the control of management; the art
lies in selecting the information that is relevant to the user and is
representationally faithful. The principles of accountancy are applied to
business entities in three divisions of practical art, named accounting,
bookkeeping, and auditing.
Early
accounts served mainly to assist the memory of the businessperson and the
audience for the account was the proprietor or record keeper alone. Cruder
forms of accounting were inadequate for the problems created by a business
entity involving multiple investors, so double-entry bookkeeping first emerged
in northern Italy in the 14th century, where trading ventures began to require
more capital than a single individual was able to invest.
Today,
accounting is called "the language of business" because it is the
vehicle for reporting financial information about a business entity to many
different groups of people. Accounting that concentrates on reporting to people
inside the business entity is called management accounting and is used to
provide information to employees, managers, owner-managers and auditors.
Management
accounting is concerned primarily with providing a basis for making management
or operating decisions. Accounting that provides information to people outside
the business entity is called financial accounting and provides information to
present and potential shareholders, creditors such as banks or vendors,
financial analysts, economists, and government agencies.
In
the IETF RFCs the act of accounting is usually defined as the act of collecting
information on resource usage for the purpose of trend analysis, auditing,
billing, or cost allocation.
For
example when a user uses a connectivity service paid with a pay-per-view
approach the accounting process is based on a metering of the resource usage by
the user usually time spent with an active connection or the amount of data
transferred using that connection. The accounting is hence the recording of
this connectivity service consumption for subsequent charging of the service
itself.
Management
accounting or managerial accounting is concerned with the provisions and use of
accounting information to managers within organizations, to provide them with
the basis to make informed business decisions that will allow them to be better
equipped in their management and control functions.
Ø management
accounting information is:
Ø primarily
forward-looking, instead of historical;
Ø model
based with a degree of abstraction to support decision making generically,
instead of case based;
Ø designed
and intended for use by managers within the organization, instead of being
intended for use by shareholders, creditors, and public regulators;
Ø usually
confidential and used by management, instead of publicly reported;
Ø computed
by reference to the needs of managers, often using management information
systems, instead of by reference to general financial accounting standards.
Universities
and Colleges offer lot of advanced degree courses in Accounts with thesis and
Research programmes. Online Institutes like Onlinehomeworksite also offers
Special Online courses in Accounts assignment help, Accounts homework help and
tutoring services. Students must use of these services and excel in their
studies. For further details contact them at for a free quote: info@onlinehomeworksite.com
and visit us: www.onlinehomeworksite.com or call +1 213 221
8563.
