The Role of Accounting on Business and Our Society Research Paper

The Role of Accounting on Business and Our Society - Research study ExampleThe relaxation sheet is the most effective tool in communicating the financial health of a business. The balance sheet reveals the financial position of a business and reports the assets, liabilities, and owners righteousness as at a given point in time (Allee & Yohn, 2009). This financial statement similarly reveals the resources that remain unused at the end of the period and available for use in the following periods. Additionally, the balance sheet reports the claims for resources that remain unpaid at the end of the period and the capital represented in dissimilar rows it is constituted.The break aways of comptrollers include recording, analyzing, and reporting the financial status of a company or a person. Either an accountant or a certified public accountant finish manage chronicle. Accountants do not legitimately have to acquire any degree or any form of accounting license for them to perf orm their duties any person over 18 years old and is good in numbers game can be an accountant (Seetharaman, Sun & Wang, 2011). A certified public accountant must earn an accounting degree from an accredited institution, pass the CPA Examination, pass the professional Ethics Exam from the American found of CPAs, and work for 1,800 hours in one year under supervision of a licensed CPA. The accounting conk in the organization is critical because it enables identifying, measuring, and communicating economic information to permit informed judgments and decisions. However, the accounting function is expensive to maintain because of high costs of installing systems and paying salaries and wages for accountants.I would prefer to form a merchandising company to a service company. Charts of accounts provide a list of all accounts in the companys system (Seetharaman, Sun & Wang, 2011). Merchandising company charts of accounts have more code numbers than the charts for service industry. Cha rts of accounts in a service industry provides a list of