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11/5/15

Scope of Accounting

 
Accounting is not a field of very broad scope and application. But only its use was confined to the world of business, it does not spread throughout the entire society and the environment. Now - day, social institutions and professional activities, whether commercial revenue, no financial transactions MUST be done. So they can record the transaction when that occurred, the need to find the final result of the need and duration after the expiration of the particular company for summarizing occurs. In addition, it also needs to communicate with the information on the interpretation of the right people. Accounting, has been used only will be able to solve this problem.

In the modern world, and accounting systems, as well, but is carried out in the business, as well as all institutions such as schools, a number of non-commercial organizations, universities, hospitals, club charity trust, also cooperative society etc. in the form of government and the local government municipalities, general medical professionals, Panchayat. This like practicing lawyers, certified public accountants, etc. also to several types of appropriate accounting methods. In fact, as a method of accounting that is used by all of the people involved in a series of financial transactions.

Range of the previous day of accounting, has received recently many changes. As it accounted for as a dynamic subject, scope and area of ​​business, has always been to keep pace with increased changes in changes in social economy. The results of the study, has come out as focused on the field in the new areas of application and principle accounting policies. National accounting, human resources, accounting accounting society, is an example of a new field of application of the accounting system.


Business
Widely applicable accounting in the business field. Today, in the modern world, most people are engaged in the business sector, all employers, benefit, be in accordance with the generally accepted accounting principles (GAAP) for the financial condition of the loss and the operating company.


Government agency  
However, it keeps a record of all transactions in order to government agencies find a decent fund general location of, it does’t follow the generally accepted accounting principles (GAAP).


Non-governmental organization  
Non-governmental organizations and services, such as NGO such as, international NGO Red Cross, which plays an important role in nation-building, such as SOS is, also, I'm using accounting. Use accounting system in the organization of this so-called fund accounting.


Individual  
Individuals also, it can economic activity is carried out bad. They also, you need to perform some form of appeal of financial and accounting information to the economic decision-making tool.


Accounting process  
Process, purpose, or by step, depending on the target, shows you how to run any particular project step. Accounting collects process has been identified as a process that performs a specific task of communicating financial information. By doing so, it is the collection of record data, classification, aggregation, follow some definite procedures such as reporting and finalization.


Accounting is located in the Arts 
Accounting art record, class interpretation and financial data is the final decision. Word 'art' says that the way to do something. It has that we answer some of the specific purpose, especially behavior of knowledge related to the creativity and skills. Accounting is applied, it is composed of a clear technology and application systematic way that requires the exact skills and expertise. So, it is the art depending on the nature of the accounting.


Accounting is not a means, is the end  
Accounting, in the communication of information to the user, will headline the same time as the financial condition of the results entity. The user, on the basis of the description, make decisions of their own. So, it can be said to be able to give a fair account of you is still the major individuals or organizations. Meanwhile, the main purpose can be identified to make decisions based on the information provided by the financial accounting. Therefore, accounting itself will help to identify by itself, it is not fair. So, accounting is the other end, it is I have said is itself not a purpose.


Accounting information and financial transactions  
After the accounting records and financial transactions of the same class day, to confirm the results in a certain period of time to be given to the user. So, from the beginning to the end, in all stages, accounting for financial information and deals. Alexa is only a matter of financial subjects. This is the rank of non-monetary ratio of non-financial is not available.


Accounting information system  
Accounting, been identified as a repository of information, it will be characterized. As a service function, to collect the communication of financial information of the process, and from any entity. Knowledge of the discipline has been evolved from the need to meet the financial information needed by the group have different interests.

The first step is to identify the financial character of events and transactions. With the help of receipts and accountants bill, it will be able to identify these transactions.

And not in terms of money, it recorded the transaction in accounting books by the number of surface. So, after you identify the event or transaction, it must be changed or described in terms of money. Most of the trading is happening in terms of just money. However, for some reason, in terms of amount, the transaction had to be changed in terms of money.

After the size of the identification and transactions, you need to record this or one of its sub-sector, is referred to as a journal.

The next group or class of transactions. Transaction of the same nature, it can be record a single. For example, paid rent, you can record in another book called ledger. Ledger in a separate account, account of rent, electricity account, payroll account, account of payment, for each item, such as writing the fees paid during the year to come under the payment account  in the heading of such account It is open. This enables the business to find the total remuneration paid to a few months or a few years in order to develop a payment that was spent between a few months or a few years.

After you attach a class different from the account, you will have a good amount of data available to you. It is in order to understand the financial business of your own, it is difficult to look at all of the head position. It is for the sake of simplicity, accountants, summarizes all of the data on the intake of the income statement. By writing all of the cost to one side and the opposite result. The difference between total revenue and expenditure of the profit and loss of business. Other forms to represent the financial condition by placing the assets and liabilities in the table known as the balance sheet. From the balance sheet, we will be able to understand the financial condition of the business. Overview of all transactions, the income statement balance sheet that has been recorded in the journal and ledger.

The use of static execution for such tools, the ratio is to analyze the output image such as a percentage, it can be interpreted. This analysis will be able to report to stakeholders is easy to understand without going through the thousands of entries that were made in magazines and ledger. Auditor checks / audit reports, it can be used to create an account. Generally accredited certification to

Donation, do the audit work and reporting. The report, by an administrator or owner, or business bank, make a decision by stakeholders such as the tax authorities is very convenient