Question

Describe the place place of finance and accounting in a business?
Summarize the background and sources of financial accounting standards?
Demonstrate how ethics applies to the field of accounting?

Discuss the financial consequences of various organization structures.
Outline the variety of accounting roles internal and external to a busniess?
Differentiate between functional and divisional organization?
Describe the legal implications of a business organization on its accounting?
Summarize the information provided in a corporations annual report?

Explore the fundamentals of accounting
Define the accounting entity and discuss the going concerns concept?
Identify the major underlying accounting principles of consistency, full disclosure, materiality, variability and conservatism?
Explain the accounting concept?

Answer 1

Describe the place place of finance and accounting in a business?

Finance is the life blood of every organisation.without money we cant do anything. for the beggining to the end there is a need of finance.cash is circulated firstly as a form of capital and then the form of profit. Like finance accounting also plays a vital role in business.In order to record all such transactions,there should follow a proper way of accountig,all outflow and inflow of money should be properly recorded in books of accounts

Summarize the background and sources of financial accounting standards?

Financial accounting standard provides a way to prepare the financial reports.Standards are the guidlines to prepare the acounting statements.it can be GAAP,IFRS,IAS etc.In 2001 GAAP is replaced by IFRS.Financial Accounting Standard Board is the source of of such priciples and standards.Its a non profit organisation,its primary aim is to make GAAP.at the time of implementation GAAP should be followed by all such corporates while preparing financial statements,after that IFRS came into force and which is accepted by 120 countries now including EU also.

Demonstrate how ethics applies to the field of accounting?

Ethics is the moral values,deals with what is good and what is bad.business ethics refers to the ethical practices to be applied in business.the business should follow ethics acts to the stakeholders,they should act as a social organisation and try to satisfy the needs of all interested parties.it include providing true and fair view of the financial position of the business,provide quality products and services to all the customers etc and dont try to mislead investors.

Discuss the financial consequences of various organization structures.

Finance is the major part of all organisations as well as organisational structure,it include management,if there is lack of finance then the management feels dificulty to adopt innovations in the business,while making any decision about future,the financial feasibility should beidentified,it include current and expected financial matters.When comes to employees,if the organisation faces difficulty to raise addiquate fund,then it will affect the employees negatively,some times they may loss their employment or they wont be paid according to their work

Outline the variety of accounting roles internal and external to a busniess?

internal- the accounting information to be useful to the internal management,owners,employees etc.for taking proper plansand decision,they need some accounting information.internal accounting role include bookkeepers,financial accouting,management acounting etc.

external include-customers,share holders,bank,government,tax authorities etc.They are in need of accounting information.external accounting role include audit reports,tax returns etc.

Differentiate between functional and divisional organization?

functional organisations are classified in the basis of functions whereas divisional organisations are based on different divisions in an organisations

in functional organisations ,resposibilities are assigned to some relevant functional departments but in divisional departments every division is responsible for their act

functionalorganisations are cost effective,but divisional organisation similar functions each division formulates its own cost centers

Describe the legal implications of a business organization on its accounting?

The accounting information so provided should be capable of providing the true and fair view of accounting information.if it is wrong,then the firm may be liable for penalty,it include mainly in tax purpose,sometime in order to reduce the tax burden ,the firm may hide their some portion of income from the statement.if the authority can identify the mistake then the firm may comes under fine and penalty depends upon the situation.so dont try to cheat government and concerned authorities.If the auditor helped the firm to commit such fraud,then he also may comes under puishement.

Summarize the information provided in a corporations annual report?

• General corporate information
• Operating and financial highlights
• Letter to the shareholders from the CEO
• Narrative text, graphics, and photos
• Management's discussion and analysis (MD&A)
• Financial statements, including the balance sheet, income statement, and cash flow statement
• Notes to the financial statements
• Auditor's report
• Summary of financial data
• Accounting policies

Define the accounting entity and discuss the going concerns concept?

Accounting entity(businessentity or seperate entity)according to this assumption ,business is treated as seperate entity that is distinct from its owners

Going concern concept- as per this concept the business unit is assumed to have an indefinte life,it is deemed that there is no intention or necessity to wind up the business activity in the immediate future

Identify the major underlying accounting principles of consistency, full disclosure, materiality, variability and conservatism?

principles of consistency- the comparison will be effective and meaningful only if the accounting practices and methods remain unchanged over year

principles of full disclosure- this convention suggests that all accounting statements must be prepared honestly and must contain all relevevant material information

principles of materiality-as per this principle all material facts should be disclosed in the financial statements.

variability and conservatism-the paculiar feature of an industry may require departure from accounting principles and guidlines -,anticipate no profit,but provide all possible losses, respectively.

Explain the accounting concept?

Accounting Concepts can be understood as the basic accounting assumption, which acts as a foundation for the preparation of financial statement of an enterprise. Indeed, these form a basis for formulating the accounting principles, methods and procedures, to record and present the financial transactions of business.