QuickBooks Play Greate Roll in Accounting
Accounting plays a vital role in the decision process. An accounting system provides information in a form that can be used to make knowledgeable financial decisions. The information supplied by accounting is in the form of quantitative data, primarily financial and relates to specific economic entities. Accounting provides the means for tracking activities and measuring results. Without accounting information, many important financial decisions would be made blindly. For example, investors would not be able to distinguish between a healthy company and a company or failure., bankers would not be able to know whether to lend to that company or not because they would not be able to judge the creditworthiness of that company; managers would not be able to rightly price their products or control the operations of the company, etc. The list of problems is endless. As we said earlier, without accounting information business is impossible.
Imagine your telephone company with no system record who calls whom and how long they talk. Or your institute not nothing down which papers have you passed and whether you have paid your fees or not These settings illustrate a problem with bookkeeping, the least glamorous aspect of accounting. Bookkeeping can be defined as the preservation of a systematic, impossible, as you would not been know what is going on in business.
The bookkeeping data has been used to keep a track of things and activities that the business is performing. In the last 500 years, bookkeeping data has also been used to evaluate the performance and health of the business. This most of the time not done or done improperly. Bookkeeping is only a small part of whole accounting system.
Accounting system can be defined as a information system which helps analyze the transaction that the business is entering into, handle routine bookkeeping tasks and structure information so that it can be used to evaluate the performance and health of the business.
We define accounting as a system for providing quantitative information primarily financial in nature, about economic entities that is intended to be useful in making economic decision. The four key components of this definition are substantiated below.
Accounting relates to members. This means that only the events that can be captured in numbers are the ones registered by the accounting system. This is the strength because numbers can easily tabulate and summarized. It can also be a weakness because one or two numbers cannot capture many important because business events. For the company cannot be measured in quantitative figures.
Imagine your telephone company with no system record who calls whom and how long they talk. Or your institute not nothing down which papers have you passed and whether you have paid your fees or not These settings illustrate a problem with bookkeeping, the least glamorous aspect of accounting. Bookkeeping can be defined as the preservation of a systematic, impossible, as you would not been know what is going on in business.
The bookkeeping data has been used to keep a track of things and activities that the business is performing. In the last 500 years, bookkeeping data has also been used to evaluate the performance and health of the business. This most of the time not done or done improperly. Bookkeeping is only a small part of whole accounting system.
Accounting system can be defined as a information system which helps analyze the transaction that the business is entering into, handle routine bookkeeping tasks and structure information so that it can be used to evaluate the performance and health of the business.
We define accounting as a system for providing quantitative information primarily financial in nature, about economic entities that is intended to be useful in making economic decision. The four key components of this definition are substantiated below.
Accounting relates to members. This means that only the events that can be captured in numbers are the ones registered by the accounting system. This is the strength because numbers can easily tabulate and summarized. It can also be a weakness because one or two numbers cannot capture many important because business events. For the company cannot be measured in quantitative figures.
