Explore BrainMass

Explore BrainMass

    Why is accounting a system? ISAB FASB DuPont Formula

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:45 am ad1c9bdddf
    https://brainmass.com/business/accounting/describing-accounting-system-358178

    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. ...

    Solution Summary

    Discussion (424 words) is in everyday language suitable for a novice to intermediate.

    $2.19

    ADVERTISEMENT