Explore BrainMass

Explore BrainMass

    Accounting objectives; basic terminology, ethics, technology

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

    1. What are the primary objectives of accounting?

    2. What is the basic terminology of the accounting process or financial reporting?

    3. How does accounting affect your personal life emphasizing professional ethics?

    4. How does technology play a role in small business accounting?

    Wikipedia or any other open source websites are not permitted.

    Please include APA in-text citations and references.

    © BrainMass Inc. brainmass.com October 2, 2020, 1:09 am ad1c9bdddf

    Solution Preview

    1. What are the primary objectives of accounting?

    The objectives of an accounting system are:
    1. To record financial data in a format that can be used for comparability and for the compilation of financial statements that can provide accurate and reliable information to stakeholders of an entity.
    2. To account for assets with the goal of controlling and safeguarding them by tracking and recording their book values. The corollary to this statement is to minimize or prevent fraud.
    3. To provide detailed information which can be used for income tax, sales tax and other types of required reporting by governmental units.
    4. To use the information in making business decisions for future operations.

    The discussion about an accounting system differs from a discussion about the production of financial statements. Producing periodic financial statements is not an ongoing requirement in the same context as recording transactions. The concept of recording is the foundation or framework for the rest. It would not be possible to compile accurate financial statements without the underlying accounting records.


    2. What is the basic terminology of the accounting process or financial reporting?

    The basic terminology in accounting involves having an understanding of the accounting equation of Assets = Liabilities + Equity. First, an understanding of asset, liability, equity, revenue and expense is critical to any higher level or ...

    Solution Summary

    In a 900+ word solution, the concepts are fully explained and cited.