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 selective information most a societys economic history, current fiscal health, and scenery for the rising (Johnson, 2004). The preparation and presentation of fiscal statements require the work of certain(a) rules to ensure truth, fairness, and consistency. Accounting employs a number of concepts. They underlie on the whole traditional news report in commercial organizations and be more often than not utilise in non-commercial organizations as well (Bebbington et al, 2001). Although various concepts get to been employed, fewer go found universal agreement. However, four ar deemed to be pregnant (Oxford, 2002). The four ingrained accounting concepts substructure be identified as going concern, accruals, consistency, and prudence concept. As mentioned above, fiscal statements argon a record apply sum up and communicate fiscal information about a company and there argon many groups of people wh o have an involution in these statements. In other words, financial statements argon important a enormous range of groups both internal and foreign to the organization. These different groups are known as stakeholders. They always have different purposes by looking at the companys financial statement. This bring is divided into both objet darts. fraction one explains how the fundamental accounting concepts are utilize in preparing financial statements. In this classify 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 criti cally try the role of financial accounting ! in aiding the decision making processes of the main users of accounts. PART I Financial statements: Financial statements are necessary sources of information about a company. They are use 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 suffice statement. Each of these statements summarizes specific... If you want to get a full essay, excel it on our website: OrderEssay.net

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