Question

Business Research Databases

Let's discuss the role of business research databases in accounting research.

Answer 1

Business research database is the information processed in an organised way relating to all the areas considered in a business. It helps to analyze the overall business in terms of cost to be incurred, profit to be generated, projected sales, and growth of the business in all aspects.

Accounting research is a field of research that deals with the all prospects of accounting profession like the financial records, expenses and revenues, past records, budgets etc.

Let us here discuss the role of business research database in accounting research:

• Accounting research involves making budgets for the upcoming year. But for making this budgets itvreqyires certain databases like sales occurred in the current year, total cost incurred for purchasing the materials and many other which are all useful to predict the budget for next year. And all these information is obtained from the business research database.
• Business research database helps to detect any type of uncertainty that could be arising in the future and hence helps to make better accounting decisions accordingly which is profitable for the organization.
• Business research database is helpful in gathering different types of information's which are used in making the financial statements as well as financial reports which us used by the management to take decisions related to that that. If correct information is not passed, then the accounting research cannot be carried forward in a positive way that will inversly affect the organization.

Therefore, we can understand that accounting research cannot be conducted without the business research database which acts as a guide dance for the conducting accounting research.

For any organization, accounting research is very important as it deals with financial prospects of a business and that field requires a lot of integrity and accuracy. If the correct information is not passed, this will lead to make loss for the organization. Thus, we can say that Business research database plays an important role in accounting research.