News tagged with accounting

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State-run health exchanges off to smoother start

(HealthDay)—Unlike the highly publicized problems that have plagued the federal health exchange website created to help Americans register for insurance coverage, many state-run exchanges are operating ...

Oct 11, 2013
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Self-referral spurs unnecessary MRI exams for patients

Patients having knee MRI examinations are significantly more likely to receive a negative finding if referred by physicians who have a financial interest in the imaging equipment being used, according to a study published ...

Sep 17, 2013
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About one in four uninsured could be excluded from ACA

(HealthDay)—More than one in four of those eligible for new premium assistance tax credits under the Affordable Care Act (ACA) do not have a checking account and will not be able to receive premiums from ...

May 24, 2013
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Tweeting our way to heart health

(Medical Xpress)—Real-time social phenomenon, Twitter, can be a powerful tool to help prevent heart disease and improve health practices, according to a group of researchers affiliated with the University ...

Apr 16, 2013
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Can social media solve the US healthcare crisis?

The creation of a social media videoconferencing platform geared towards healthcare might pave the way for enhanced use of social media in the world of healthcare according to a study published this month in the International Jo ...

May 10, 2012
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Team care of chronic diseases seems cost-effective

The collaborative TEAMcare program for people with depression and either diabetes, heart disease, or both appears at least to pay for itself, according to a UW Medicine and Group Health Research Institute report in the May ...

May 07, 2012
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Accountancy

Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in selecting the information that is relevant to the user and is reliable. The principles of accountancy are applied to business entities in three divisions of practical art, named accounting, bookkeeping, and auditing.

Accountancy is defined by the Oxford English Dictionary (OED) as "the profession or duties of an accountant".

Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof."

Accounting is thousands of years old; the earliest accounting records, which date back more than 7,000 years, were found in Mesopotamia (Assyrians). The people of that time relied on primitive accounting methods to record the growth of crops and herds. Accounting evolved, improving over the years and advancing as business advanced.

Early accounts served mainly to assist the memory of the businessperson and the audience for the account was the proprietor or record keeper alone. Cruder forms of accounting were inadequate for the problems created by a business entity involving multiple investors, so double-entry bookkeeping first emerged in northern Italy in the 14th century, where trading ventures began to require more capital than a single individual was able to invest. The development of joint stock companies created wider audiences for accounts, as investors without firsthand knowledge of their operations relied on accounts to provide the requisite information. This development resulted in a split of accounting systems for internal (i.e. management accounting) and external (i.e. financial accounting) purposes, and subsequently also in accounting and disclosure regulations and a growing need for independent attestation of external accounts by auditors.

Today, accounting is called "the language of business" because it is the vehicle for reporting financial information about a business entity to many different groups of people. Accounting that concentrates on reporting to people inside the business entity is called management accounting and is used to provide information to employees, managers, owner-managers and auditors. Management accounting is concerned primarily with providing a basis for making management or operating decisions. Accounting that provides information to people outside the business entity is called financial accounting and provides information to present and potential shareholders, creditors such as banks or vendors, financial analysts, economists, and government agencies. Because these users have different needs, the presentation of financial accounts is very structured and subject to many more rules than management accounting. The body of rules that governs financial accounting in a given jurisdiction is called Generally Accepted Accounting Principles, or GAAP. Other rules include International Financial Reporting Standards, or IFRS, or US GAAP.

This text uses material from Wikipedia licensed under CC BY-SA