Paper Topic:

The Importance of accounting in Business firms

1 . INTRODUCTION

Accounting deal with different clients these may be private people , the government or a business entity . The major purpose of the accounting is to ensure the accuracy of the financial records of a business , to guarantee that taxes are paid on time to prevent other fraudulent acts that a business might commit regarding its financial conditions . Due to the accounting , one can prepare , analyze and verify a company 's financial statements to provide accurate information to those who rely on it . Accounting normally classified as public accounting , management accounting

, government accounting , etc

2 . DEFINITION OF THE ACCOUNTING (defines it and mention about it and why it is important

Accounting is the process of recognizing , valuating and transmitting economic or financial information to the end users Stakeholders ) in to make valid judgments and decisions according to the light of the information provided . Accounting is used in all forms of the business in to judge and evaluate the financial position of the business . Accounting not only provides information to the external user such as creditors , governmental agencies , and general public but also serves the internal users such as company 's management and employees (Russell , 2006

3 . DEFINITION OF FINANCIAL STATEMENT

Financial statements are one of the primary means by which economic information about a firm is communicated to interested users . The four main forms of financial statements are the balance sheet , the income statement , the statement of cash flow and the statement of owner 's equity . Financial Statements...

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