financial accounting
“Financial statements are like fine perfume; to be sniffed but not swallowed.” - Abraham Briloff
(Professor Emeritus of CUNY Baruch)
ACCOUNTING:
Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof."
ACCOUNTING AND ITS ROLE IN SOCIETY:
Accounting plays a central role in society; hence, we need to consider it from a social perspective.
Individuals in society coexist by establishing relationships with each other. Another way of viewing society is by segmenting it into different groups or arenas, for example the social, economic, organizational and political arenas. In order to function effectively, these different arenas need to communicate and it is accounting information that facilitates this communication.
Accounting information serves many important purposes, for example assisting users in making informed decisions, in relation to the effective allocation of scarce resources.
Therefore accounting information can be seen to be a potent influence in society, which affects everybody.
Accounting has a long history it is seen as being socially constructed i.e. it is practiced by people for people and therefore it is more of an art rather than a science. Unlike other professions, which have a body of theoretical knowledge to depend on to make decisions, accounting has evolved as a craft with few rules and little to no theoretical knowledge underpinning its practice and function.
Accounting traditionally has played a stewardship role and it has historical records to demonstrate it as an extension of the owner’s personal memory. However society and business practices have changed. The growth of global business and the emergence of new sectors such as ecommerce have lead to complex transactions
(Professor Emeritus of CUNY Baruch)
ACCOUNTING:
Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof."
ACCOUNTING AND ITS ROLE IN SOCIETY:
Accounting plays a central role in society; hence, we need to consider it from a social perspective.
Individuals in society coexist by establishing relationships with each other. Another way of viewing society is by segmenting it into different groups or arenas, for example the social, economic, organizational and political arenas. In order to function effectively, these different arenas need to communicate and it is accounting information that facilitates this communication.
Accounting information serves many important purposes, for example assisting users in making informed decisions, in relation to the effective allocation of scarce resources.
Therefore accounting information can be seen to be a potent influence in society, which affects everybody.
Accounting has a long history it is seen as being socially constructed i.e. it is practiced by people for people and therefore it is more of an art rather than a science. Unlike other professions, which have a body of theoretical knowledge to depend on to make decisions, accounting has evolved as a craft with few rules and little to no theoretical knowledge underpinning its practice and function.
Accounting traditionally has played a stewardship role and it has historical records to demonstrate it as an extension of the owner’s personal memory. However society and business practices have changed. The growth of global business and the emergence of new sectors such as ecommerce have lead to complex transactions