Accounting Unit 2 Assignment

Accounting Unit 2 Assignment - Alan Koska Accounting Unit 2...

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Alan Koska Accounting Unit 2 Assignment Objective 1 : Describe the nature of a business, the role of accounting, and ethics in business. The nature of any business is to provide a resource of a good to consumers. Its basic purpose is to make a profit. However, there are several agencies and organizations that operate without the purpose of earning a profit. The role of accounting in a business is. Accounting provides information for managers to use in operating the business as well as providing information for others in assessing the economic performance and condition of the business. Ethics is one of the most important roles in business. Because if you don’t have good ethics chances are your will not be found trustworthy if you don’t have trust you won’t have investors or clients therefore no business. Objective 2 : Summarize the development of accounting principles and relate them to practice. Accounting principals allow financial accountants to prepare reports that allow investors or anyone else, to compare companies. Those accounting principles “develop from research, accepted accounting practices. And pronouncements of regulations.” Here, within the United States, we have the financial accounting standards board. Their responsibility is to develop those accounting principles. However, outside the United States, many countries use the international accounting standards board. There are big differences between the two agencies and they are currently working on eliminating those issues. So without accounting principles in place, one could not compare Wal-Mart to Target, or Carvel to Baskin Robbins. You are able to see how they stand financially as well as their
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This note was uploaded on 06/28/2011 for the course ACCOUNTING ac101 taught by Professor Zhoa during the Spring '11 term at Kaplan University.

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Accounting Unit 2 Assignment - Alan Koska Accounting Unit 2...

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