Accounting Essay -- Business Management Studies

be account is the practice of maintaining, auditing and processing monetary information (http//en.wikipedia.org/wiki/Accounting) forthe purpose of a company, persons or validation. There argon somefundamental parts of accounting which ar Identifying, measuring andcommunicating (Black, 2000). You need to identify the important fiscal sections of a company, person or organisation which testamentinclude the companies assets, liabilities, capital, income and ofcourse expenditure. You will also need to measure monetary valuesof the key financial components in a way which represents a true andfair imagine of the organisation (Black, 2000). Finally there is thecommunication side of accounting, it is vital that a company, personor organisation can communicate all of the financial informationgathered so in turn users, whether they are essential or external,will be able to receive the correct financial information and be ablefollow it. There are dickens forms of accounting they are Fi nancialAccounting and Management Accounting. Financial Accounting isconcerned with the preparation of financial accounts for the benefitof people outside a company or organisation. Management Accounting isfinancial information apply by managers within a company ororganisation to affect financial decisions based on the information thatthe accounts provide.There are legion(predicate) people who would be interested in companys accounts,they are divided up into two groups international Users and interior Users. Within the External Users group are Investors, lenders, Suppliers,Customers, prospective buyers, other businesses and the Government. Included in the Internal Users group are the Owners, Shareholders, theBoard of Directors and Employ... ...ountsPayable which are debts owed BY a company, person or organisationswhich, at present have not been paid, Capital, Income and in the long runRevenue and as before if there was a increase in any of the above itwould be a Debit entry.Fo r example if a company, person or organisation was to purchase afixed asset such as a building or piece of machinery this would be anincrease in that company, person or organisations assets and wouldtherefore be a Debit entry, the other side of the entry would be a impute entry as there would be a decrease in the bank account of thecompany, person or organisation. The multiply Entry bookkeeping isessential in order for a company, person or organisation to keep trackof all financial transaction as effigy Entry is a very detailedfinancial account and everything that comes in or out of the businessis written in a Double Entry Account.