Accounting 557 Week 1 Discussion
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Week 1 Discussion #1
Accounting is ingrained in our society and it is vital to our economic system in the U.S. How does this fit with your perception of accounting? Justify your response with examples.
Accounting and financial standing is what maintains a business. Having a good accounting system will provide the management with the tools to make advantageous business goals. Management can see where the business is strong and where it may lose money.
A bad accounting system can ruin a business. Management will make poor decisions based on poor or non-existent accounting systems. Management sometimes chooses to use accounting for unethical motives.
In either case, accounting is ingrained in society and affects the economic system for better or worse. America is a capitalistic society.
Accountings at the core of a businesss decision-making process. Businesses are essential to economies. Managers will look at the accounting books to see if they can expand, shut down, among many other things. Investors ask or demand to see the accounting books of a business in order to make a final decision on whether or not they will actually invest. This is to protect all from whether it is sloppy or just plain illegal because it is very important.
Example: Accounting contains data about everything in the business like in how much profit a company in so it is the responsibility of manager and account department that they regularly and consistently measure the account. If the decision is not judged correctly about account then companies plans may go wrong and that will create some harmful effect in company strategy. If a manager and accounting department measure the things correctly then they will plan according a situation which is not real and it will create a negative effect on the business outcome. Again it takes money to run and ruin a business as the bottom line.
Week1 Discussion 2
Compare and contrast the uses of financial accounting information by 1) investors and 2) creditors. In your opinion, does one group rely more heavily on the information than the other? Who are the different users of accounting information?
We can distinguish between two groups of users of financial information: investors and creditors are both users. Investors are (Internal users) are all those individuals who help running the business within an organization such as managers, supervisors, directors, and so forth. Conversely, creditors are (external users) are those individuals and institutions (such as stakeholders, banks, suppliers, and other interested parties that want financial information about specific organizations.
Financial Accounting: Information is primarily provided to external users such as investors.
Managerial Accounting: