Accounting The Language Of Business - 913 Words

Introduction According to Gaspar (2014), accounting can be viewed as â€Å"the language of business† as it records, summarizes and reports the financial activities and events of a business. The information that is generated from accounting is used by people to make important decisions, such as managers, stockholders, potential investors, and creditors. The income statement, balance sheet, statement of retained earnings and statement of cash flows are the most important reports generated by the accounting information system. Income Statement According to Melicher (2013), the purpose of an income statement is to list â€Å"the revenues generated and expenses incurred by a firm over an accounting period, such as a quarter or year.† Per Gaspar (2013), review of income statements provides information such as how much income a firm earned or lost during a specific period. Further it summarizes profits earned and expenses acquired over a period of time with the result exhibiting a net income or net loss. Melicher (2013) identifies the major types of expenses that are shown on a typical income statement to include the costs of producing or manufacturing goods and services, expenses incurred from selling, general and administration, depreciation, interest expense and income taxes. The costs of producing or manufacturing good and services which are sold, includes the costs involved in the production of goods and services, including overhead, labor and materials utilized. Additionally,Show MoreRelatedAc counting Is The Language Of Business1286 Words   |  6 PagesAccounting is a major that teaches the language of business, it opens doors to the business world all over the globe, the possibilities with a accounting major is endless in the business field. Whether you want to run your own business or become a certified public accountant majoring in accounting gives you the establishment. A major plus in having a career in business is the flexibility it offers. Many businessmen can make their own hours and handle their business at the comfort of their own homeRead MoreAccounting Is The Language Of Business4305 Words   |  18 PagesIntroduction Accounting is the language of business. It is a profession that is being guided by principles, concepts, conventions, laws, etc. All these fundamental building blocks serve as common and general compasses to all practitioners of the profession. In some cases, they are nation-wide tailored, while in other cases, they are universally tailored. Accounting as a living, practical, dynamic and realistic profession covers so many areas of social, economic (business), and governmental activitiesRead MoreAccounting as a Language of Business6003 Words   |  25 Pages1. Define accounting? 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Bloomfield (2008, p. 433) recognised that people communicate through written natural languages by selecting words from a standard vocabulary according to the rules of grammar, then organizing those words into sentences according to the rules of syntax and style. People communicate through accounting reports by selecting accounts from a standard vocabulary, combiningRead MoreWhat are the disadvantages of moving toward a set of global standards and what barriers need to be overcome to achieve the goal of standardization1104 Words   |  5 Pagesï » ¿Much of the world is moving toward a common set of global accounting standards. Discuss the benefits of having one set of accounting and financial reporting standards around the world, with particular reference to investors and multinational firms. What are the disadvantages of moving toward a set of global standards and what bar riers need to be overcome to achieve the goal of standardization? (ESSAY) As people need to speak the same language to understand each other while talking, participants onRead MoreAccounting Career Goals Essay1552 Words   |  7 Pagesthat I will have competitors. In this competitive business world, understanding what is truly valuable to me is a major step towards achieving my goal. My strengths are my languages, technology skills, education, work ethic and the ability to follow directions. My weaknesses are communication skill, lack of U.S culture and working experience. Increasing job demand, globalization and accountant role expanding are three major opportunities in accounting field. Information technology, uncertainty of recessionRead MoreLanguage and Culture in Business Essay881 Words   |  4 PagesAn article in the South Florida Business Journal on How Cultural, Language Differences Affect Business, explains the miscommunication in language and cultural in business transactions. And the article supports its statement by using real life examples . 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