Basic Accounting and Business Structures
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The paper attempts to provide a brief overview of the hierarchy of various sources of generally accepted accounting principles, the relevance of qualitative characteristic of accounting information, the differences between accrual accounting and cash accounting and finally the characteristics of various business legal forms. The paper also discusses how even though successful companies can go bankrupt, investors can lose their investment and employees can end up unemployed, the accounting profession's responsibility is to address the concerns of various stakeholders and restore the confidence in financial reporting by improving the quality of financial information.
From the Paper:"Business practices and accounting rules have undergone significant evolution to cope with the complexity of today's economic and social environment. Changes in the nature of the businesses required new business forms attractive to entrepreneurs. The constant sophistication of business practices, emerging new economic and social trends were followed by the attempts of regulators and standard setters to regulate the economy and increase transparency of financial reporting. The recent accounting scandals which made Enron and WorldCom household names demonstrated the importance of understanding the accounting rules role in preparing in financial reporting."
Sample of Sources Used:
- Anonymous, HOW TO: CHOOSE THE RIGHT LEGAL STRUCTURE. (2009, January). Inc, 31(1), 49-52. Retrieved July 9, 2009, from Entrepreneurship. (Document ID: 1628929351).
- Brammer, Roland. (2002, September 16). Identifying a legal structure for your business. The Weekly Gleaner: Gleaner Extra, (North American Ed.), p. 7. Retrieved July 9, 2009, from Entrepreneurship. (Document ID: 495906991).
- Ernest F Howard. (2003, September). What's your type-of business entity? California CPA, 72(3), 14-17. Retrieved July 9, 2009, from Entrepreneurship. (Document ID: 420374351).
- Financial Accounting Standards Board. . (2009). CON 2(AM) -- Qualitative Characteristics of Accounting Information. In Original Pronouncements - As Amended (as of February 11, 2009) . Retrieved July 8, 2009, from Accounting & Tax with Standards. (Document ID: 1132293121).
- Kieso, D. E., Weygandt, J. J., & Warfield, T. D.(2007). Intermediate accounting, (12th ed.) Hoboken, NJ: Wiley. Retrieved July 8, 2009 from ACC/537 FINANCIAL ACCOUNTING course materials.
Cite this Analytical Essay:
Basic Accounting and Business Structures (2011, June 15) Retrieved January 27, 2021, from https://www.academon.com/analytical-essay/basic-accounting-and-business-structures-147689/
"Basic Accounting and Business Structures" 15 June 2011. Web. 27 January. 2021. <https://www.academon.com/analytical-essay/basic-accounting-and-business-structures-147689/>