mba accounts assignment
Master of Business Administration- MBA Semester 1
MB0041 – Financial and Management Accounting
Assignment
Q1.
Accounting is one of the oldest, structured management information system. Give the meaning of accounting and book keeping? Explain the objectives of accounting?
Accounting
Accounting is an information science used to collect, classify, and manipulate financial data for organizations and individuals.
According to the definition given by American Institute of Certified Public Accountants (AICPA) , accounting can be defined as, “Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events which are, in part at least of a financial character, and interpreting the results there of.”
Accounting is instrumental within organizations as a means of determining financial stability. Without accounting, organizations would have no basis or foundation upon which daily and long-term decisions could be made. The budgets for marketing activities, profit reinvestment, research and development, and company growth all stem from the work of accountants
Book-keeping
Bookkeeping involves the recording, storing and retrieving of financial transactions for a company, nonprofit organization, individual, etc.
Common financial transactions and tasks that are involved in bookkeeping include:
Billing for goods sold or services provided to clients.
Recording receipts from customers.
Verifying and recording invoices from suppliers.
Paying suppliers.
Processing employees’ pay and the related governmental reports.
Monitoring individual accounts receivable.
Recording depreciation and other adjusting entries.
Objectives of accounting
Permanent Record
Any business firm needs a permanent record of the transactions that it indulges in. These records could be vital for internal purpose, for taxation purpose or for any other purpose. Whenever the organization commits any resource of monetary
MB0041 – Financial and Management Accounting
Assignment
Q1.
Accounting is one of the oldest, structured management information system. Give the meaning of accounting and book keeping? Explain the objectives of accounting?
Accounting
Accounting is an information science used to collect, classify, and manipulate financial data for organizations and individuals.
According to the definition given by American Institute of Certified Public Accountants (AICPA) , accounting can be defined as, “Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events which are, in part at least of a financial character, and interpreting the results there of.”
Accounting is instrumental within organizations as a means of determining financial stability. Without accounting, organizations would have no basis or foundation upon which daily and long-term decisions could be made. The budgets for marketing activities, profit reinvestment, research and development, and company growth all stem from the work of accountants
Book-keeping
Bookkeeping involves the recording, storing and retrieving of financial transactions for a company, nonprofit organization, individual, etc.
Common financial transactions and tasks that are involved in bookkeeping include:
Billing for goods sold or services provided to clients.
Recording receipts from customers.
Verifying and recording invoices from suppliers.
Paying suppliers.
Processing employees’ pay and the related governmental reports.
Monitoring individual accounts receivable.
Recording depreciation and other adjusting entries.
Objectives of accounting
Permanent Record
Any business firm needs a permanent record of the transactions that it indulges in. These records could be vital for internal purpose, for taxation purpose or for any other purpose. Whenever the organization commits any resource of monetary