Unit 1 - Individual Project 1 r2

Unit 1 - Individual Project 1 r2 - Accounting Principles...

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Accounting Principles 1 Running head: Accounting Principles Accounting Principles David Lee Watkins American Intercontinental University Online Professor Sunny Onyiri ACCT205-1004A-09: Principles of Accounting I August 29, 2010
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Accounting Principles 2 Accounting Principles 1) Describe for the students the primary objectives of accounting. According to Das (n.d.), the main objectives of Accounting are to maintain a organized record of all the financial transactions. There is a need to organize the records in a systematic order so that it will be easy and quick to look for any record that is needed. It is also to protect the properties of the business. Accounting provides information to the manager or proprietor on the unjustified or unauthorized abuse of their properties. Also accounting records are used to identify if the company is profiting or losing. Financial statements are being prepared from the information gathered from the records of transactions. The profit and loss account states if the company is profiting (when revenue is more than expenditure). Aside from the knowledge of the profit or loss status of the business, businessmen (and other external users, e.g., lenders, government agencies) will also see the financial position of their business, if they owe to someone or from an organization, how much they owe (liabilities). In order to ascertain the financial position of the business a balance sheet or position statement is prepared to show this information. In order to assist in facilitating decision making, accounting reports are almost always used to determine all of the information that is needed by the business and other external users so that they can make a rational decision. If the company is profiting, then the proprietor will develop
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Unit 1 - Individual Project 1 r2 - Accounting Principles...

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