摘要:Financial statements are presented by formals or graphics or photos for the business financial operations, which usually refer to accounts or accountants.
财务会计在企业中的重要性-Importance of financial Accounting in company
Introduction
Financial statements are presented by formals or graphics or photos for the business financial operations, which usually refer to accounts or accountants. Through a process of detail financial data collecting from one company’s accounting records in some certain period, usually it is presented as annual or frequent report. It is said that these statements could provide information about the financial position, performance and interests of one company by the periodic summarization. They usually hold the charateristics of understandable, relevant, reliable and comparable for readers. As a result, many companies are willing to spend plenty of money or a lot of people to publish their every year financial statements or annual reports. It is said that managers or leaders could accordingly make their economic or business decisions more reasonably in future.
Thus, in this paper it demonstrated the importance of financial accounting and how to evaluate the financial statement or annual reports in company. Moreover, as regard for the case of McDonald and KFC, this paper analyzed the relationship between financial statements and business decisions for managers, as well as a comparative analysis also presented later.
Role of Financial Accounting
As for the financial statements of companies, the accountancy or accountant is necessary since financial accounting is a special field for decision makers, such as stakeholders, suppliers, banks, employees, government agencies, and stockholders. The final purpose of financial accounting is reduce principal-agent problems through the monitor or evaluation of business activities and performances in order to report the result to interested readers (Financial accountancy, 2008). In other word, the reader maybe are not the people invovling in organizations or not the involving in everyday’s operations. As a result, for them, the financial statements are necessary to understand the business performances or forecast futural measures.
For the people inside the companies, the financial statements both local or internatinoal financial accounting standards adopted are significant for managers or leader to evaluate the accounting information in order to make reasonable decisions to manage their business activities, as well as monitor their performance of business entities in everyday.
Based on the accounting concepts, there are three purposes which are concluded by the method of Generally Accepted Accounting Principles (GAAP). As following:
Creating financial statements or annual reports in companies.
Providing information including decision making, planning or performance evaluation for the decision makers such as managers, leaders, stakeholders, suppliers, govermental agencies, and stockholders.
Need for business regulatory requirements.
Financial Statements and Annual Reports
Financial statement usually presented through the photos, graphics or formals to demonstrate the collection financial data, which provide the overall information of business financial conditions in both short and long period.
In order to reveal the real financial situation of companies, the financial statements usually include f
本论文由英语论文网提供整理,提供论文代写,英语论文代写,代写论文,代写英语论文,代写留学生论文,代写英文论文,留学生论文代写相关核心关键词搜索。