What is accounting?
Accounting is the system that measures business activities, processes that information into reports, and communicates the results to decision makers. For this reason it is called “the language of business“. The better you understand the language,
the better you can manage the financial aspects of living. Personal financial planning, education expenses, loans, car payments, income taxes, and investments are based on the information system that we call accounting – also important for the environment
(illustration below). A key product of an accounting information system is that financial statements allow people to make informed business decisions. Financial statements are the documents that report an individual's or an organization's business in monetary amounts.
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Inhaltsverzeichnis (Table of Contents)
- What is accounting?
- Users of Accounting Information: Decision Makers
- The Development of Accounting
- The Accounting Profession
- The Work of Accountants
- Specialised Accounting Services
- Accounting Organizations and Designations
- Accounting Standards in the United States
- Objective of Financial Reporting
- Underlying Concepts
- Accounting Principles
- Generally
- Constraints on accounting
- Accounting Standards throughout the world
- Sources
- English Books
- German Books
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report provides an overview of accounting and especially accounting principles and accounting standards in the United States. The report explores the fundamental aspects of accounting, including its definition, key users, and the development of the accounting profession.
- Definition and Purpose of Accounting
- Users of Accounting Information and their Needs
- Evolution and Development of Accounting Practices
- Accounting Standards and Principles in the United States
- Constraints and Challenges in Accounting
Zusammenfassung der Kapitel (Chapter Summaries)
- Chapter 1: This chapter defines accounting as a system that measures business activities, processes information into reports, and communicates the results to decision makers. It emphasizes accounting's role as "the language of business" and its relevance in personal financial planning, business management, and various other aspects of life.
- Chapter 2: This chapter focuses on the diverse users of accounting information, highlighting their specific needs and how they utilize accounting data for informed decision-making. It explores the roles of individuals, businesses, investors, creditors, government regulatory agencies, taxing authorities, and non-profit organizations in utilizing accounting information.
- Chapter 3: This chapter delves into the historical development of accounting, tracing its evolution from early forms of record keeping to the sophisticated accounting systems used today. It examines the factors that shaped the development of accounting practices and the changing roles of accountants.
- Chapter 4: This chapter explores the accounting profession in depth, discussing the diverse work of accountants, specialized accounting services, and the organizations and designations that govern the profession. It provides insights into the professional standards and ethics that underpin accounting practice.
- Chapter 5: This chapter examines the accounting standards in the United States, focusing on the objective of financial reporting and the underlying concepts that govern the preparation of financial statements. It highlights the importance of transparency, reliability, and consistency in accounting information.
- Chapter 6: This chapter explores the core accounting principles that guide the application of accounting standards. It discusses the general principles and the constraints that influence accounting practice, ensuring the production of accurate and relevant financial information.
Schlüsselwörter (Keywords)
This report focuses on accounting, accounting standards, accounting principles, financial reporting, decision-making, business activities, users of accounting information, accounting profession, and the development of accounting practices. The report also delves into the role of accounting in various sectors, including business, government, and non-profit organizations.
- Quote paper
- MMag. Philipp Kaufmann (Author), 1999, Accounting Standards and Principles in the US, Munich, GRIN Verlag, https://www.grin.com/document/4009
