Accounting Essay -- Business Management Studies

accounting system accounting system is the practice of maintaining, auditing and processing pecuniary tuition (http//en.wikipedia.org/wiki/Accounting) forthe purpose of a friendship, persons or organisation. There are some primaeval parts of accounting which are Identifying, measuring andcommunicating (Black, 2000). You need to advert the importantfinancial sections of a company, person or organisation which allow forinclude the companies assets, liabilities, capital, income and ofcourse expenditure. You will also need to measure pecuniary valuesof the key financial components in a way which re exposes a true andfair view of the organisation (Black, 2000). Finally in that location is the chat side of accounting, it is vital that a company, personor organisation grass communicate all of the financial selective informationgathered so in turn users, whether they are internal or external,will be equal to(p) to receive the correct financial information and be able hold fast it. There are two forms of accounting they are FinancialAccounting and Management Accounting. Financial Accounting isconcerned with the preparation of financial accounts for the bring inof people outside a company or organisation. Management Accounting isfinancial information used by managers within a company ororganisation to make financial decisions based on the information thatthe accounts provide.There are many people who would be interested in companys accounts,they are divided up into two groups away Users and Internal Users. Within the External Users group are Investors, lenders, Suppliers,Customers, prospective buyers, different businesses and the Government. Included in the Internal Users group are the Owners, Shareholders, theBoard of Directors and Employ... ...ounts due which are debts owed BY a company, person or organisationswhich, at present have not been paid, Capital, Income and finallyRevenue and as before if there was a increase in any of the above itwould be a De bit foundation.For example if a company, person or organisation was to acquire afixed asset such as a structure or piece of machinery this would be anincrease in that company, person or organisations assets and wouldtherefore be a Debit entry, the other side of the entry would be aCredit entry as there would be a decrease in the bank account of thecompany, person or organisation. The Double Entry Bookkeeping isessential in order for a company, person or organisation to keep trackof all financial transaction as Double Entry is a very exactfinancial account and everything that comes in or out of the businessis written in a Double Entry Account.