Psychology & Psychiatry

Coming out about mental health on social media

Susanna Harris was sitting in her lab class for her graduate program at the University of North Carolina at Chapel Hill when she received an email that told her she had failed what she describes as "the most important exam ...

Psychology & Psychiatry

Can a budget make you happier?

(HealthDay)—Clever websites and smartphone apps have made creating a household budget easier, though it's still an unappealing chore for some. But what if using a tool that makes you smarter about money could also make ...

Diseases, Conditions, Syndromes

Boy dies of Ebola in Uganda as virus spreads from DRCongo

A five-year-old boy in Uganda has died of Ebola, the health minister told AFP Wednesday, as his grandmother and younger brother also tested positive for the virus after the family visited relatives in epidemic-hit neighbouring ...

Oncology & Cancer

Healthy habits could prevent 27% of cancer cases in Brazil

Lifestyle risk factors such as smoking, alcohol consumption, overweight and obesity, unhealthy diet and lack of physical activity are associated with a third of all deaths caused by 20 types of cancer in Brazil, according ...

Health

Breaking down the anti-vaccine echo chamber

The rhetoric around vaccination is generally black and white: vaccines are good or vaccines are bad. In these days of Facebook and Twitter, it is easy enough to block out the opinions of those you disagree with, and only ...

Health

Teens face health and safety risks exploring sex online

Teens spend hours every day on internet-connected devices, where limitless opportunities to explore sexuality online. These opportunities don't come without big risks, though. A researcher from Michigan State University found ...

page 1 from 7

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