The fundamental accounting concepts and the role of financial accounting in aiding the decision making processes of four different non-management stakeholder groups.

Introduction Reliable, relevant pecuniary statements present the best culture most a confederacys economic history, current fiscal health, and chance for the rising (Johnson, 2004). The preparation and presentation of fiscal statements require the social occasion of certain(a) rules to ensure truth, fairness, and consistency. Accounting employs a number of concepts. They underlie altogether traditional business relationship in commercial organizations and be mostly utilise in non-commercial organizations as well (Bebbington et al, 2001). Although various concepts film been employed, fewer watch found universal agreement. However, four ar deemed to be significant (Oxford, 2002). The four essential accounting concepts stool be identified as going concern, accruals, consistency, and prudence concept. As mentioned above, pecuniary statements argon a record apply take up and communicate fiscal information about a company and there argon many groups of people who h ave an occupy in these statements. In other words, financial statements ar important a enormous range of groups both internal and extraneous to the organization. These different groups are known as stakeholders. They always have different purposes by looking at the companys financial statement. This information is divided into both objet darts. fraction one explains how the fundamental accounting concepts are utilize in preparing financial statements. In this crack up examples are excessively given to illustrate the application of the fundamental accounting concepts.

Part two explains the four main users of financial statements and their interest. In this part it will also critic ally quantify the role of financial account! ing in aiding the decision make processes of the main users of accounts. PART I Financial statements: Financial statements are necessary sources of information about a company. They are employ to analyse a companys past, present and future performance. A financial statement consists of the profit and lost account, the balance sheet, and the cash race statement. Each of these statements summarizes specific... If you want to get a full essay, grade it on our website: OrderEssay.net

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