Why is accounting a system? ISAB FASB DuPont Formula
Not what you're looking for?
1. Why is accounting described as a system?
2. Since 1973, the FASB as had the authority to prescribe Accounting Standards in the U.S. Given today's global marketplace, how would you expect this to change?
3. How does the DuPont model extend our understanding of ROI?
Purchase this Solution
Solution Summary
Discussion (424 words) is in everyday language suitable for a novice to intermediate.
Solution Preview
See attachment for proper format.
1. Why is accounting described as a "system"?
Financial Accounting is the practice of gathering data from business activity, summarizing it in the form of financial statements and reporting it to stakeholders so that they can use the financial information to make decisions. It is a system because there is a process for gathering the data, a set of procedures for putting it into the general ledger, and a way to classify it into financial statement formats. The accounting system also has certain controls or rules about how the data is to be gathered and by whom so that the integrity of the data is as high as possible.
2. ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.