Accounting

Answer: In simplest terms, financial accounting is the communication of information about a business or other type of organization (such as a charity or government) so that individuals can assess its financial health and prospects. Probably no single word is more relevant to financial accounting than “information.”

Whether it is gathering financial information about a specific organization, putting that information into a structure designed to enhance communication, or working to understand the information being conveyed, financial accounting is intertwined with information.

Question: Above, in discussing the possible decisions that could be made about an organization, ownership shares were mentioned. Occasionally, on television, in newspapers, or on the Internet, mention is made that the shares of one company or another have gone up or down in price during that day because of trading on one of the stock markets. Why does a person or an organization acquire ownership shares of a business such as Capital One or Intel?

Learning objectives

  • After studying this introduction, you should be able to:
  • Define accounting.
  • Describe the functions performed by accountants.
  • Describe employment opportunities in accounting.
  • Differentiate between financial and managerial accounting.
  • Identify several organizations that have a role in the development of financial accounting standards.

Choosing an accounting software doesn't have to be complicated. Here are three questions to focus on when selecting one for your business:

  • How much are you willing to pay?
  • Which features does your business require in an accounting software program?
  • Why do you need accounting software?

When searching for the best accounting software, we looked for solutions that are affordable and easy to use. We also looked for time-saving features that take the headache out of small business accounting, such as automated entries, invoicing, bill payments, expense reports, financial reports and reconciliations. Additionally, we looked for software that make it simple to perform advanced tasks, such as built-in financial reports and data syncing, for instance, with point of sale (POS) systems and bank accounts.

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