Acct Ass
The Role of Accounting on Business and our Society
Purpose of Financial Statement
Financial statement plays a significant role in business organization. Basically, it provides information about the performance, changes and the financial position of a business organization. The major purpose of financial statement is to provide essential information to a wide range of users as described below:
Managers
Financial statement helps the managers within a business organization to manage day to day affairs of the company through assessment of its financial performance and the financial position to enable them make useful decisions regarding the destiny of the business organization (Accounting Tools, 2013).
Prospective Investors
The prospective investors use the financial statement to make the appropriate decisions whenever they want to invest in certain business organization. Through analyzing of financial statement, the potential investors can predict the future performance of the organization based on profit disclosed (Clarke, 2012). Furthermore, risks associated to the investment will be evaluated before the real investment is done.
Shareholders
Shareholders will use financial statement to assess both returns and risks on their investment in the business organization and take a wise investment decision based on their key analysis.
The most effective when communicating financial health of an organization
According to me, a manager is the most effective in communicating the financial health of an organization. This is because the management plays an overall responsibility of ensuring that quality services are provided within an health organization (Accounting Tools, 2013)
Major Functions of accountant to that of public certified public accountant
Accountants in business organization are invaluable assets which contribute to the success of the business organization. Some of the basic and major roles of the accountants to that of certified public accountant
Purpose of Financial Statement
Financial statement plays a significant role in business organization. Basically, it provides information about the performance, changes and the financial position of a business organization. The major purpose of financial statement is to provide essential information to a wide range of users as described below:
Managers
Financial statement helps the managers within a business organization to manage day to day affairs of the company through assessment of its financial performance and the financial position to enable them make useful decisions regarding the destiny of the business organization (Accounting Tools, 2013).
Prospective Investors
The prospective investors use the financial statement to make the appropriate decisions whenever they want to invest in certain business organization. Through analyzing of financial statement, the potential investors can predict the future performance of the organization based on profit disclosed (Clarke, 2012). Furthermore, risks associated to the investment will be evaluated before the real investment is done.
Shareholders
Shareholders will use financial statement to assess both returns and risks on their investment in the business organization and take a wise investment decision based on their key analysis.
The most effective when communicating financial health of an organization
According to me, a manager is the most effective in communicating the financial health of an organization. This is because the management plays an overall responsibility of ensuring that quality services are provided within an health organization (Accounting Tools, 2013)
Major Functions of accountant to that of public certified public accountant
Accountants in business organization are invaluable assets which contribute to the success of the business organization. Some of the basic and major roles of the accountants to that of certified public accountant