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The paper explains the function of both financial and managerial accounting. The paper shows how the understanding of a firm's cost structure and revenue streams can allow a sole proprietor to make the best decisions possible. The paper demonstrates how accounting is an essential component of even the smallest of businesses.
From the Paper:"Financial accounting generally refers to accounting methods that result in the creation of financial statements. The preparation of these statements is governed by accounting standards. While a sole proprietorship does not need to produce and publish these statements, they still hold significant value to the principle. The most important ramification is that the principle uses the profit figures in their own personal tax preparation statements. This is because there is no separation for tax purposes between the sole proprietorship and the principle's personal taxes."
Sample of Sources Used:
- Marshall, David H.; McManus, Wayne W & Viele, Daniel F. (2008). Accounting - What the Numbers Mean. McGraw-Hill/Irwin, New York, 2008.
Cite this Term Paper:
The Value of Accounting (2010, December 15) Retrieved October 16, 2021, from https://www.academon.com/term-paper/the-value-of-accounting-146067/
"The Value of Accounting" 15 December 2010. Web. 16 October. 2021. <https://www.academon.com/term-paper/the-value-of-accounting-146067/>