Financial Accounting Essays

Tags: Business Law Research Paper Topic IdeasWeb Design AssignmentsHead Research PaperLandscape Company Business PlanCreative Writing Phd Programme UkSteam Car Wash Business PlanSpanish Essay On EcuadorSurvey On HomeworkMacroeconomics Topics For Research PaperHow To Start A Good Research Paper

For instance, being able to project the sales volume should indicate the budget required for purchasing inventory and the logistic expenses needed to handle such inventory.

Fourth, financial accounting emphasizes precision whereas managerial accounting stresses timeliness (Garrison, Noreen & Brewer 2011, p. Accuracy down to the last centavo is held important in financial accounting.

The products weeded out are obviously those that are no longer profitable and may perhaps prove to drain the company’s funds.

Sixth, financial accounting also needs to comply with Generally Accepted Accounting Principles (GAAP) (Garrison, Noreen & Brewer 2011, p. By doing this, external users are assured that the financial reports are made according to a common set of conventions so that the financial information is comparable with those of other firms in the industry and that fraud and misrepresentation are avoided.

The accruals concept of accounting states that a transaction is recorded at the time when it takes place, not when the settlement is made.

On the other hand, a prepayment is the payment of an obligation or instalment payment before its due date.The first of the differences involve user orientation. Although both groups of users rely on the same financial information, their perspectives vary according to their interests in the firm.Financial accounting deals with providing information to stockholders, creditors, tax authorities and regulators who are outside of the company; whereas, management accounting deals with providing information to the company’s managers who direct and control the company’s operations (Garrison, Noreen & Brewer 2011, p. For example, stockholders are interested to find out from the financial statements if they have acceptable returns from their investments; while creditors need to know if the company has the capacity to fulfill its financial obligations, while tax authorities need to know how much taxes are due based on the financial operations.Accounting as a discipline and practice is concerned with recording, estimating, organizing and summarizing financial and operational data (Garrison, Noreen & Brewer 2011, p. These two types of accounting have several aspects which distinguish one from the other. The financial information derived could be classified into financial accounting and managerial accounting.Financial accounting reports the summary of the entire company’s financial activities (Garrison, Noreen & Brewer 2011, p. Contrastingly, managerial accounting looks into segments of financial information.For example, in management accounting, expenses in the product lines could be analyzed to identify which products may be prioritized and which products need to be removed from the product offers.This is a financial statement that illustrates how changes in the balance sheet and income affect a company’s cash flows.Specifically, the cash flow statement breaks the analysis down to three areas: operating, investing and financing activities.Using guidelines, such transactions are recorded, summarised and presented in financial statements such as the balance sheet or an income statement.Double entry booking keeping system lies at the heart of the financial accounting.


Comments Financial Accounting Essays

  • Financial Accounting - Term Paper

    Financial Accounting. 1. Introduction Financial accountancy or financial accounting is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners and other stakeholders.…

  • Financial accounting Flashcards and Study Sets Quizlet

    Accounting Balance Sheet Statement of Financial P A system of analyzing, recording, and summarizing the results Reports the amount of assets, liabilities, and stockholders' e Reports that summarize the financial results of business activ Accounting A system of analyzing, recording, and summarizing the results Balance Sheet.…

  • Free Accounting Essay & Essay topics Researchomatic

    Essay on Accounting Accounting in essence is an information science which caters the processes of keeping or maintaining financial accounts. The field is diverse and complex and requires critical analytical skills.…

  • Essay Accounting standards for financial reporting

    The conceptual framework and accounting standards for financial reporting provides an agreed set of fundamental principles and concepts that leads to consistent standards to ensure that these principles are met accordingly and the information required by users are faithfully represented and relevant FASB, 2010.…

  • The Accounting Cycle – Intermediate Accounting Essay Octotutor

    The Accounting Cycle. Throughout the course of an accounting time period, a number of financial transactions are likely to take place. Common transactions for a business might include incoming payments from customers, outgoing payments to vendors for supplies, or changes to company ownership. When the accounting cycle is complete.…

  • Accounting Essay Samples

    Generally Accepted Accounting Principles GAAP – Essay Sample. In the United States, the term Accounting Principles refers to Generally Accepted Accounting Principles GAAP. Instituted by the Financial Accounting Standards Board FASB, GAAP provides a framework for reporting financial data. There are five concepts that generally describe GAAP. The Full sample.…

  • Management and Financial Accounting Research Paper

    Financial accounting and management accounting; Differences & characteristics of financial accounting and management accounting in terms of content, structure, designation, frequency of generation, purpose and uses; Limitations; Role played by management and financial accounting originating from the output of these functions; Conclusion; Introduction…

  • Difference Between Financial and Managerial Accounting.

    Segments of an Organization Financial accounting is primarily concerned with reporting for the company as a whole. By contrast, managerial accounting forces much more on the parts, or segments, of a company.…

  • Financial Accounting Outline - New York Essays

    Objectives Course Objectives This course is concerned with the study of basic accounting concepts and reminisces, their application to business transactions and financial statements, and an understanding of the uses of and limitations of the balance sheet, income statement, and the statement of cash flows.…

The Latest from ©