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