Accounting Definition; this is the practice and body of knowledge concerned primarily with methods for recording transactions keeping financial information to the management and advising on taxation maltose. American institute of certified public accounting [AICPA 1961] says accounting is an act of recording, classifying and summarizing in a significant manner and in terms of money transaction and events and interpreting the results thereof. American accounting association [AAA 1966] says accounting is a process of identifying measuring and communicating economic information to permit inform judgment and decision by users of that information.
Accounting can also be said to be a way to communicate the financial health of a business or an organization in a systematic way of recording, reporting and analysis of financial transaction of a business. In a real sense all these definitions of accounting are acceptable but they are by-cutting the aims and understanding of accounting, coming to say the most and acceptable definition of accounting is these; Accounting this is the systematic process of identifying, recording measuring classifying, verifying summarizing, interpreting and communicating financial information thereof. It also reveals profit and loss for a given period and the value and nature of a firms asset/liabilities and owners equity. Accounting provides information on the resources available to a firm, the means those employed to finance the resources and the results achieved through their use. History of accounting.
HISTORY OF ACCOUNTING
It can be traced back ancient civilizations and is thousand years old, the early development of accounting dates back to ancient mesopotamia and is closely related to development in writing and counting and money, there is also evidence for early forms of bookkeeping in ancient Iran and early auditing system by ancient Egyptians and Babylonians, the roman government had access to detailed financial information. The double-entry bookkeeping developed during in medieval Europe and accounting then split into financial accounting and management accounting with the development of joint stock companies. Accounting was divided into financial accounting and management accounting with the development of joint stock companies. Accounting began to transition into an organized profession in the nineteenth century with local professional bodies in England merging to form the institute of chartered accountants of England and wales in 1880
EARLY DEVELOPMENT OF ACCOUNTING
Accounting records dating back more than 700 years have been found in Mesopotamia and documents from ancient Mesopotamia shows lists of expeditions and goods received and traded the development of accounting along with that of money and numbers, may be related to the taxation and trading activities of temples.
The early development of account was closely related to development in writing counting and money. In particular, there is evidence that a key step in the development of counting the transition from concrete to abstract counting was related to the early development of accounting and money and took place in Mesopotamia.
Other accounting records were also found in the ruins of Babylon, Assyria which date back more than 7,000 years. The people of that time relied on primitive accounting methods to record the growth of crops and herbs. Because there was a natural season to forming and herding, it was easy to count and determine if a surplus has been gained after the crops had been harvested or the young animal weaned.
EXPANSION OF THE ROLE OF THE ACCOUNTANT
Between the 4th millennium BC and 3rd millennium BC, the ruling leaders and priests in ancient iron had people over see financial matters. In Godin Tepe yahya cylindrical tokens that were used in buildings that had large rooms for storage of crop. In Godin Tepe’s finding the scrip only contained tables with figures while Tepe Yahya findings contained scrip and graphical representation. The invention of a form of bookkeeping using clay tokens represented a huge cognitive heap for mankind.
During the 1st millennium BC, the expansion of commerce and business expanded the role of the accountant. The Phoenicians invented a phonetic alphabet “probably for bookkeeping purpose” and there is evidence that an individual in ancient Egypt held the title comptroller of the scribes there is also evidence for early form of management consulting and auditing in the old testament for example the book of Exodus describes Moses engaging it hammer to account for materials that had been contributed towards the building of the tabernacle.
By about the 4th century BC the ancient Egyptians and Babylonians had auditing systems for checking movement in and out of storehouses, including oral “audit report” resulting in the term auditor (from audire to hear in latin). By the 2nd century BC the importance of taxation had created a need for the recording of payments and the rosetta stone also includes a description of a tax revolt.
LUCA PACIOLI THE DOUBLE-ENTRY BOOKKEEPING SYSTEM
In the 13th country merchants based on bookkeeping to oversee multiple simultaneous transaction financed by bank loans one important breakthrough that took place around that is the introduction of the double entry bookkeeping system. Bookkeeping system with involves a debit and a credit entry for transaction or for with majority of transaction the historical origin of the use of the word “debit and credit in accounting goes back to those of single entry bookkeeping with had as its chief objective of keeping tract of amounts owned by customer [debtors] and amount owed to creditor. Debit in latin means “he owes” and credit in latin means “he trust”
The earliest extant evidence of full double-entry bookkeeping appears in the farolti ledger of 1299 -1300. the oldest discovered record of a complete double-entry system is the messari [Italian; treasers] account contains debits and credits journalized in bilateral form and carry forward balances from the preceding year and therefore enjoy general recognition as a double entry system. Arithmetic, geometry, ratio and proportion this was first printed and published in vence in 1494. it included a 27- page trractise on bookkeeping . “particularis de computis et scrituris “ it means “details of calculation and recording” pacioli has a book that he wrote. He wrote the and it sold mainly to merchants who used the book as a refrence text as a source of pleasure from the mathematical puzzles it contained , and to aid the education and their sons his work represents the first known printed treatise on bookkeeping, and it is widely belived to be the forerunner of modern bookkeeping practise. In summary in arthematics pacioli introduced symbol for “plus” and “minus” for the first tune in a printed book. Symbols which became standard notation in Italian renaissance mathematics. Sum arithmetica was also the first known book printed in Italy to contain algebra. Although luca pacioli did not invent double- entry book keeping n his 27 page treatise on bookkeeping contained the first ever known published work on that topic, and is said to have laid the foundation for double – entry bookkeeping as it practiced today although Pacioli's work or treatise exhibits almost no originality , it is generally considered as an important work mainly because of its wide circulation it was written in vernacular Italian language and it was printed in a book pacioli saw accounting as an ad-hoc ordering system devised by a merchant. Its regular use provide the merchant with continued information about his business, and allows him to evaluate how thing one going to act accordingly.
Pacioli recommends the Venetian method of double entry booking above all others. Three books which are major are involved in the book of account which one direct basis of the system.
1. The memoriale (Italian: memorandum)
2. The giornale (journal)
3. The quaderno (ledger)
The ledger classes as central documents and is accompanied by on alphabetical index Pacioli’s treatise gave instruction on recording barter transactions in a varity of currencies –both of which were far more common than today. It also enable merchants to audit their own books and to ensure that their entries in the accounting records made their book-keepers complied with the method he described. Without such a system all merchants who do not maintain their own record were at greater risk of theft by their employers or agents: It is not by accident that the first and last items described in his treatise concern maintenance of an accurate inventory.
MODERN PROFESSIONAL ACCOUNTING
The modern profession of the charted accountant originated in Scotland in the nineteenth centuery. During this time accountants often belong to the same association offered as solicitors, and the latter solicitor sometimes offered accounting services to their clients. Early modern accounting had similarities to today’s forensic accounting. Forensic accountants today incorporate their duties of expert’s financial witnesses into their general services rendered. An 1874 circular announcing practices of one James Mcclelland of Glasgow promises he will make statements for laying before arbiters, courts or council.
In July 1854 the institute of Accountants in Glasgow petition Queen Victoria for a Royal charter. The petition signal by 49 Glasgow accountants, augured that the profession of accountancy had long existed in Scotland as a distinct profession of great respectability, and that although the numbers of practitioners had been originally few the number had been rapidly increasing. The petition also pointed out that accountancy required a varied group of skills as well as mathematical skills for calculation, the accountants had to have an acquaintance with the general principles of legal system as they were frequently employed by the courts to give evidence on financial matters. The name charted Accountants’ for members. By the middle of the 19th centuary, Britains industrial Revolution was in full swing and land on was the financial centre of the world. With the growth of the limited liability company and large scale manufacturing and logistics demand surged for more technically proficient accountants capable of handling the increasingly complex world of high speed global transactions able to calculate figures like assets and depreciation and inventory valuation and cognizant of the lastest in legislation such as the new company laws then being introduced. As companies propitiated, the demand for reliable accountancy short up, and the profession rapidly become and integral pert of the business and financial system. To improve their status and combat critism of low standards, local professional hardies in England amalgamated to form the institute of chartered Accountants in England and wales, established by royal charter in 1880. Initially with just under 600 members, the newly formed institute expand rapidly, it soon drew up standards of conduct and examinations for admission and member were authorized to use the professional designations F.C. A (Fellow chartered Accountants), for a firm partner and A C A (Associate charted Accountant) for a qualified member of accountants staff. In the United States the American institute of certified public Accountant was establishes in 1887
1. Business idles (or win /megrual- Hill series in principles of Accounting) (1998-2011)
2. New man, Amy, and scott ober. Business communication and Business Accounting: In person in online masen: south- western (2013)
BRANCHES OF ACCOUNTING
Accounting can be divide into several areas of activity.
These can certainly overlap and they are often closely intertwined, but it is still useful to differentiate them because accounting professionals tend to organize themselves around these various specialties, some are listed here and explained:
1. Financial Accounting
2. management Accounting
4. Tax Accounting
5. fund Accounting
6. forensic Accounting
7. Accounting systems installation
8. fiduciary Accounting
FIDUCIARY ACCOUNTING: This is a branch of accounting that deals with the handling of different accounts managed by an individual entrusted with the guardianship and management of property and possessions for the benefit of another party.
ACCOUNTING SYSTEM INSTALLATION: This deals with installation of accounting procedures for the gathering of accounting financial data and embrace the designing of accounting forms to be used in the date gathering process. Accounting system is closely related to management advisory services. Succeeding in this field nowadays requires technical knowledge and skills in information technology.
AUDITING: It is said that the work of an auditor begins when the work of an accountant ends. Auditing deals with the inspection of the financial statements, which were prepared in financial accounting by independent certified public accountant. The purpose of auditing is for the independent CPA (called the auditing) to express an opinion regarding the fairness of the presentation of financial statements and thus increase public and investor trust.
TAX ACCOUNTING: This branch involves the preparation of tax returns and the rendering of tax advice to clients, such as determination and verification of tax consequences, the effect of taxes in the business operations, tax minimization through logical means and the like. Take note that tax accounting is not the some as government accounting.
GOVERNMENT ACCOUNTING: This branch of accounting deals with the transaction of the national government and its different agencies. Government accounting mainly focuses on the safekeeping of public funds and for the purpose to which such funds are committed or devoted.
FINACIAL ACCOUNTING: This branch of accounting deals with journalizing of business transaction, preparation of financial statements and communicating the information about economic effects of the accounting transactions and events to external users. Financial accounting focuses on the preparation of five basic financial statements, namely- statement of financial position, statements of comprehensive income, statement of cash flows, statements of changes of equity, and notes to financial statement.
MANADEMENT ACCOUNTING: This branch of accounting deals with gathering and communication of information to be used by internal users (mainly the management). It includes services to client on matters of accounting, financing, business policies, organizational producers, product costs, distribution and many areas regarding business. Management accounting could either be employed by the entity availing of the services (internal) or an independent CPA (external). CPAs in this field are commonly called management accountants, internal auditors or management consultants.
TYPES OF ACCOUNTING
Accounting is the art of analyzing and interpreting data. It may not be apparent to some but every business and every individual uses account in some form. An individual may knowingly or unknowingly rise accounting when he evaluates his financial information and relays the results to others accounting is an indispensable tool in any business, may it be small or multi-national.
The term “accounting” covers many different types of accounting on basis of groups. The following are types of accounting:
1. private or industrial accounting
2. public accounting
3. governmental accounting
4. national income accounting
5. project accounting
6. social accounting
7. sustainability accounting
8. fund accounting
9. cost accounting
PROJECT ACCOUNTING: Refers to the use of accounting system to track the financial progress of a project through frequent financial reports. Project accounting is a vital component of project management accounting with a prime focus on the launch of a new product. Project accounting can be a source of competitive advantage for project-oriented business such as construction firms.
GOVERNMENT ACCOUNTING: This can also be reffered to as federal or public accounting, this type of accounting refers to the public sector. This is a slight deviation from the financial accounting system used in the private sector. The need to have separation accounting system for the public sector arises because of the different aims and objective of the state owned and privately owned institutions. Government accounting ensures the financial positin and performance of the public- sector institution are set in budgetary context since financial constraints are often a major concern of many governments separate rules followed in many jurisdiction to account for the transactions events of public entities.
SOCIAL ACCOUNTING: This is also known as coorperate social responsibility reporting and sustainability accounting, refers to process of reporting implications of an organizations activities on its ecological social environments. Social accounting is primarily reported in the form of environmental reports accompanying the annual reports of companies. Social accounting is still in the early stages of development and is considered to be a response to the growing environmental consciousness amongst the public at large.
NATIONAL INCOME ACCOUNTING: This accounting refers to the economic or social concept in establishing accounting rather than the usual business entity concept. The national income accounting is responsible in providing the public an estimate of the nations annual purchasing power. The GNP (cross national product) is a related term, which referes to the total market value of all the goods and services produced by a country within a given period of time usually a calendar year.
PUBLIC ACCOUNTING: public accounting refers to the accounting services offered by a public accountant to the general public, when a practitioner client relationship exist, the accountant. Public accounting is considered to be more professional than private accounting. Both certified accountants can be single practitioners or by partnership ranging in size from two to hundreds of members. The scope of these accounting firms can include local, national and in for national clientele
ADVANTAGES OF ACCOUNTING:
They are so many advantages of accounting but this ones lited below are the most important and I have evidence about them they are as follow:
1. provides financial information about the business
2. provides assistance to the management
3. helps in comparison of financial results; comparison of its own results of different tears, comparison of financial results with other firm the industry
4. helps in decision making
5. accounting information can be used as an evidence in legal matters
6. helps in valuation of the business
assistance to management: accounting provides information to the management to enable it to do its work properly. Such information helps the planning, decision making and controlling of the firm
7. comparative study: a systematic record enables a business to compare one year’s result with those of the other years and locate significant factors learning to the change if any.
8. evidence in the court: systematic of record transactions is often treated by the courts as good evidence
9. it provides useful information form making economic decisions
10. it facilitates comparative study of current year’s profit, sales, expenses etc. with those of previous years.
LIMITATION/DISADVATAGE OF ACCUONTING
1. accounting is historical in nature it does not influence the current financial position or worth of a business.
2. transaction of non-monetary mature do not fined place in accounting .accounting is limited to monetary transaction only, it excludes qualities element like management, reputation, employee morale, labour strike etc.
3. accounting principle are not static or unchanging-alternative accounting procedures are often equally acceptable therefore, accounting statement do not always presents comparable data.
4. cost concept is not found in accounting price change are not considered. Many value pound to change often from time to time. This is a strong limitation of accounting
5. Accounting statement do not show the impact of inflection.
6. The accounting statement do not reflect those increase in net access values that are considered realized.
7. Accounting ignores non-monetary transaction.
8. Accounting information is sometime based on extemate which may unrealistic.
9. window dressing may lead to faulty result.
10. Accounting information can be manipulated and those can not be considered as true test of performance.
METHODS OF ACCOUNTING
Business transaction are recorded in two different ways
1. single entry
2. double entry
Single entry: it is incomplete system of recording business transaction. The business organization maintain only cash book and personal account of debtors and are differs. So the complete recording of transaction cannot be made and trail balance cannot bee prepared.
Double entry: in this system every business transaction is having a two fold effect of benefit giving and benefit receiving aspect. Recording is made on basis of both these aspect. Double entry is an accounting system that record the effect of transaction and other events in at least two account with equal debits and credit.
STEPS INVOLVE IN DOUBLE ENTRY SYSTEM
A. PREPARATION JOURNALS
B. PREPARATION OF LEDGER
C. TRAIL BALANCE PREPARATION
D. PREPARATION OF FINAL ACCOUNT
A. preparation of journal: journal is called a book of original entry. It records the effect of all transaction for the first time. Here the job of recording takes place.
B. Preparation of ledger: the ledger is the collection of all accounts. Used by a business hence the grouping of account is performed is posted to the ledger.
C. Trail balance preparation: summarizing. It is the summary of ledger balances prepared in the term of ledger.
D. Preparation of final account: at the end of the accounting to know the achievements of the organization and its financial state of affairsb the final accounts are prepared.
ADVANTAGE OF DOUBLE ENTRY SYSTEM
1. scientific system
2. complete record of transaction
3. a check on the accuracy of accounts
4. ascertainment of profit or loss
5. knowledge of the financial position of the business
6. full details for purpose of central
7. comparative study is possible
8. helps management in decision making
9. no scope of fraud.
Scientific system: this system is the only scientific system of recording business transactions in a set of accounting records. It helps to attain the objectives of accounting.
Complete record of transaction: this system maintains a complete record of all business transactions.
A check on the accuracy of accounts: by the use of these system the accuracy of accounting book can be established through the device called a trail balance.
Ascertainment of profit or loss: the profit earned or loss suffered during a period can be ascertained together with details by the preparation of profit and loss.
NO SCOPE FOR FRAUS: the from is saved from travel and misappropriation since full important about all assets and liabilities will be available
HELPS MANAGEMENT IN DECUSION MMAKING: the management may be also be able to obtain good information for its works specially for making decisions:
FULL DETAILS FOR THE PURPOSES OF CONTROL: this system premise account to be prepared or kept in as much detail as necessary and therefore, affords significant information for purpose of control etc
MEANING OF CREDIT AND DEBIT
The term "debits" is supposed to have derived from debit and the term " credit" is derived from the word "creditable". for convenience Dr is used for debit and Cr is credit, Recording of transaction require your thorough understanding of the rules of debit and credit relating to accounts. Both debit and credit may represent either increase or decrease depending upon dating of accounts
TYPES OF ACCIOUNTS
The object of bookkeeping is to keep a complete record of all transactions that place in the business .to archive this transaction have been classified into three categories;
1 Transaction relaying to persons
2 Transaction relating properties and assets
3 Transaction relating to income and expenses .
The account falling under the first heading is called "personal accounts"
The account falling under the second heading is called or know as Real Accounts.
The account falling under the third heading are called norminal account. The accounts can also be classified as personal and impersonal accounts.
The chart below will help us to understand and know various types of account we have:
Personal accounts: account recording transaction with a person or group or persons are known as accounts. These accounts are necessary in particular to record credit transaction. Personal accounts are of the following types.
NATURAL ACCOUNT (PERSONS): an accounts recording transactions with an individual human being is formed as a natural persons or personal accounts example James Armstrong’s account Drexel’s account etc both male females are included in it.
ARTIFICIAL OR LEGAL ACCOUNT (PERSON): an account recording financial statement or transactions with an artificial person credited by law or order wise termed as an artificial person.
Personal account: example firms account, limited companies accounts educational institutions account, co-operative society etc.
GROUPS/REPERESENTATIVE PERSONAL ACCOUNTS: an account directly representing a person or persons is known as representative personal account. When account are of similar nature and their number is large it is better tot group them under one head an open a representative personal account example prepared insurance. Outstanding salaries, rent, wages etc.
when a person starts a business, he is known as a proprietor. This proprietor is represented by capital account for all that he invest in business and by drawings account for all that which he withdraws from business. So capitals accounts and drawings accounts are also personal accounts.
The rule for personal account is debit the receiver and credit the giver.
REAL ACCOUNTS: accounts relating to properties or assets are known as “real account”. A separate accounts is maintained for each asset example cash, machinery, building, etc real accounts can further be classified into tangible and intangible.
A. TANGIBLE REAL ACCOUNTS: these accounts represents asset and properties which can be seen, touched or felt , measured, purchased and sold. Example cash account furniture, account, machinery account, stock accounts etc.
B. INTAGIBLE REAL ACCOUNTS: these accounts represent assets and properties which can not be seen, touched felt, but can be measured in terms of money e.g goodwill accounts patents, account, trade –mark accounts, copy rights accounts etc.
The rule for real account is “debit what comes in and credit what goes out”
Accounts relating to in-come, revenue, gain expenses loses are firmed as nominal accounts. These accounts are also known as fictitious account as they do not represent any tangible asset. Separate account is maintained for each head or expenses or loss and gain or income. Wages account, rent accounts, commission account, interest received account are some example of norminal accounts.
The rules for norminal accounts is “debit all expenses and losses.” “credit all income and gains”
DISTINTION BETWEEN BOOKKEEPING AND ACCOUNTING.
The different between bookkeeping can be summarized in a table below:
BASIS OF DIFFERENCE
Recording of transactions in book of original entry
To examine these recorded transactions in order to find out their accuracy.
To make posting in larger
To examine these posting in order to ascertain its accuracy.
To make of the amount in journal and account of ledger. To ascertain balance in all the account.
To prepare trial balance with the help of balances of ledger accounts.
Income statement and balance sheet
Preparation of trading profit and loss account and balance sheet is not bookkeeping.
Preparation of trading profit and loss accounts are balance sheet is included in it.
Rectification of errors
These are not included in bookkeeping
These are included in accounting.
Special skill and knowledge
It does not require any special skill and knowledge advanced countries this work is done by machines
It require special skill and knowledge
A bookkeeping is not liable for accountancy work
An accountant is liable for the work of bookkeeper.
IMPORTANT OF ACCUONTING
The purpose of accounting is to accumulate and report on financial information about the performance, financial position, cash flows of a business. These information is then used to reach decision on how to manage the business or invest in it, or lead money to it.
These information is accumulated in accounting records with accounting transactions, which are recorded either through such standardized business transaction as customer invoicing or supplier invoices or through supplier invoices, or through more specialized transactions known as “journals entries”
Once these financial information has been stored in accounting record, it is usually compiled into financial statements which include the following document.
1. income statement
2. balance sheet
3. statement of cash flows
4. statement of retained earning
5. disclosure that accompany financial statement
financial statement are assembled under certain sets of rules known as accounting fram work of which the best known are generally accepted accounting principle (GAAP) and international financial reported standards (IFRS). The results shown in financial statements can very somewhat depending on the framework used. The framework that a business uses depends upon which one recipient of the financial statements want thus, a European investor might went to see financial statements based on IFRS, while om American investor might want to see statements that comply with GAAP.
The accountant also generate additional reports for special purpose such as determinig the profit on sale of a product, or the revenues generated from a particular sales region these are usually considered to be managerial reports rather than the financial reports issued to the outsiders.
Thus the main purpose of accounting centres on the collection and subsequent reporting of financial information.
RELATIONSHIP BETWEEN ACCOUNTING AND BUSINESS
Accounting is the primary subject of business it is important without accounting in it is futile to venture into such affair because it might turn out worthless and time consuming and money wasting because where and how to control the situation of financial and economic balance regarding, some as accounting is also business so without accounting there is no business same as no business no accounting is practiced.
INTRODUCTION: I am going to discuss five ways in which business can be analyzed they are:
THE CONTEXT OF BUSINESS
ENTERPRENEUSHIP AND LEGAL FORMS OF BUSINESS
ACCOUNTING FINANCE AND BANKING
THE CONTEXT OF BUSINESS: describing us GSP norminal and real GDP growth rate, GDP per capital inflation, federal budget/deficit/surplus, industries economic indicators.
ENTERPRENEURSHIP AND LEGAL FORMS OF BUSINESS: identifying the pros and cons of legal forms of business, the use of tax rates to calculate the after-tax profit of various terms of business.
MARKETING: In this aspect we discuss market size, markets, market share, demographics, customers, segmentation, by demographics, behaviors, phychlographics, geography analyze the cultural aspects of marketing.
ACCOUNTING FINANCE AND BANKING: we describe and analyze the components of the income statements and balance sheet, comparing key financial ratios such as profit margin, return on equity, dept to equity ratio across companies, also understand the time value of money.
MANAGEMENT: analyzing cooperate mission, cultural leadership social responsibility of a company also identify and compile relevant employee benefits and engage in simple labour negotiation.
DEFINITION OF BUSINESS
A persons regular occupation profession or trade, or even a commercial activity, a situation or series of events,
An organization or enterprising entity engaged in commercial industrial or professional of buying and selling of goods and providing services in exchange for money
The activity of buying and selling commodities product or service in and attempt to make profit.
From my own point of view I have come to say business has no approved or specific definition so business is an organization or economics entity where goods and services are exchanged for one another or for money.
Every business require some form of investment and enough customers to whom it out put can be sold on a consistent basis in order to make a profit.
HISTORY OF BUSINESS
Business history deals with the history of business organization, methods, government regulation, labour relations and impact on society. It also includes biographies of individual companies, executive and entrepreneurs, it is related to economic history.
Economic history is a study of economics or the economic phenomena in the past. Analysis in economics history is undertaken using a combination of historical methods, statistical methods and applying economics theory to historical situations and institutions. The topic includes business
History, financial history and overlaps with area of social history such as demographic history and labour history
BRANCHES OF BUSINESS
Business is sub-divided into many area of specifications but here are some basics we need to knew about business they are as follows
4. WOOD INDUSTRY
METAL: These are metal workers, fitters, and steel fabricators machinery and equipment manufactures and the metal working and processing industry. In this field the highest level of precision is required, they is extensive range of assortment it may include for drilling, milling, culling or welding
Another important part of this field includes plumbers, electricians, solar installers, and equipment producers.
CONSTRUCTION: In these field of work, it involves heavy duty fastening and diamond cutting technology as well as construction tools. Construction chemicals and safely equipment.
AUTOMOTIVES: Here it solely depends on automotive supply, car body paint shops, farming machinery workshop, automotive trucking companies, cart operator and many others.
Electronics and machines largely determine the requirement of this field of industry, therefore products of highest quality are needed. Here we offer the best assortment and comprehensive services whether it be hand tools automotive hardware, workshop chermicals compressed air techniques and workshop supplies
WOOD INDUSTRY: Here it involves wood builders, carpenters interior decorations, wood industrial and many others. This is somewhat a secondary branch but of a primary perspective.
INDUSTRY: The various requirement of the classic crafts fields need compartment services and deliverance suppliers consolidation reduction of litigation cost and the use of a variety of electronic solution are required.
ADVANTAGES OF BUSINESS
= Your are your own boss
=Your have freedom and luxury enjoy
=Your do something you really enjoy
=Your are not compelled to follow company rules
=Your can fulfill your dreams and become wealthy
=You can employ jobless friends, relatives and other colleagues
=You can meet more interesting people
=Some of your current personal expenses can be tax-deductible
=|The owner is making all the decisions and centrelling the whole operations
NOTE: This are might be similar to that of a sole-proprieter business take note
DISADVANTAGES OF BUSINESS
=You will have several basses, which are your clients
=You risk your health because of stress and long hours of work
=You will no longer receive regular pay cheque and other benefit from your company.
=You will incur more unexpected expences
=You will become a sub-collector of the government for income and other taxes
=You have to files a lot of papers with the government
=You will risk losing your money invested in your business
TYPES OF BUSINESS
Before you engage in any business type you have to known a lot about the business, here are some business type:
STARTUPS AND HIGH GROWTH BUSINESS
BUYING EXISTING BUSINESS
SELF EMPLOYED AND WDEPENDENT CONTRACTORS
VETERAN- OWNED BUSINESSES
PEOPLES AND DISABILITIES
MINORITY- OWNED BUSINESSES
GREEN BUSINESSES: Green businesses not only benefit the environment, but also use, eco-friendly businesses practices as means to market their products
STARTUPS AND HIGH GROWTH BUSINESSES: Startups commonly are technology-based businesses and have high growth potential.
HOME-BASED BUSINESSES: Many well-known comparcies like Apple and ford started as home-based businesses
ONLINE BUSINESSES: Establishing a businesses presence on the internet can be a great way to sell and market goods and services.
FRANCHISE BUSINESSES: Franchises can provide an opportunity for ready-male business success, but they also come with a variety of challenges.
BUYING EXISTING BUSINESSES: Buying an existing businesses can be less risky than starting one from scratch, However known the forms of purchases before doing so.
SELF EMPLOYED AND INDEPENDENT CONTRACTORY: Being self employed or an independent contractor can often small businesses owners flexibility as well as challenges
WOMEN-OWNED BUSINESSES: Learn about the wide range of federal programs available to help women owned small businesses startup, grow and succeed.
VETERAN-OWNED BUSINESSES: Start a small businesses is a tremendous opportunity for veterans. The federal government has programs specifically for and the military community.
PEOPLES WITH DISABILITIES: Starting a businesses can be a great opportunity for these with disabilities because of benefits such as work flexibility
Assets, liabilities, revenues and expense within simple, familiar sceneries. Besides developing in understanding of the role of accounting via conventional reports recent developments including the discharge of accountability by companies through the release of corporate social and environmental reports and the global financial crisis are explored through an accounting lens.
ACCOUNTING AND EVERYDAY LIFE
Over fifteen years have passed since Hopwood’s (1994) call for further studies into the relationship between accounting and every day life. Recognizing as a pervasive technology that had come to permeate everyday life, Hopwood (1994, p.301) advocated an increasing attention to be paid to the way in which accounting becomes entwined with the everyday.
As accounting becomes more influential in everyday life’s affers, it is important for us to have a greater insight into the process through which that influence is created and sustained. The tethering of accounting to the realm of the everyday becomes a significant area of the study. So accounting has becomes part of everyday lives because of its vase use and accounting.
BUSINESSES AND EVERYDAY LIFE
Since accounting started in ancient Mesopotamia about 7,000 to 8,000 years ago businesses two have already started by them because they alongsicle with accounting. When pacieli wrote the 27 page book that was printed he had it mind to sell it mainly for the merchants because of their businesses, these small 27, paged book happed the merchants to solve their equations problem and in their businesses, businesses and accounting are like a car and fuel or the fires
IMPORTANCE OF BUSINESSES
The existence and expansion of business are justification of the importance of business. Business provides a lot of services to the human beings that highlight its significance. These services are as follows.
1. supply of goods and services
2. harnessing capital and other Resources in production
3. self employment and provision of employment
4. preservation of natural resources
5. Research and development and innovation
6. Income generation
7. Interesting natural income
8. Contribution to social development
9. Contribution in the development of education, science and technology
10. Development of international relations
SUPPLY OF GOODS AND SERVICES: Business provides goods and services to the society, business provide or produces different products which are sold and supplied to the society the creator created and creates things, but processing the individuals or business does the reprocessing and preservation and ultimately new utility is created. So business provides goods and services to the society.
HARNESSING CAPITAL AND OTHER RESOURCES IN PRODUCTION
Business collects the drifts of saving from different individuals, especially through banks and financial institutions and employs those in productive activities and thus homes in economic activities to utilize natural resources in creation or value addition and consequently, helps production employment and resources utilization
SELF-EMPLOYMENT AND PROVISION OF EMPLOYMENT: Business provides employment to the business man. Further, in the production distribution and services of business a large number of individuals are employed by the business organization and income generation occurs for them and others.
PRESEVATION OF NATURAL RESOURCES: Business creates new utility to the natural resources by preservation and value addition. Different new products are created by business operation, without which a let of natural resources would have been wasted
RESEARCHI DEVELOPMENT AND INNOVATION: Business continuously makes research on alternative uses of resources development of new products and methods and makes new innovation.
IMPORTANCE OF ACCOUNTING
The importance of accounting are numerous so we aging to disuse few and most important they are as follows:
1. To known the financial affairs of the business or firm
2. To be accurate in balancing of the transactions
3. Ascertainment of accounting
FINANCIAL AFFIARS: This has to do with the up to date running of the firm to known how money flows and income statements are run and to the financial position of the business organization
TO BE ACCURATE IN BALANCING TRANSACTION: In this aspect accounting plays a bigger role of ascertaining proper use of accounting tools such as the journal the trail balance and also treading profit and loss account is necessary to show further prove of the business making profit or loss
ASCERTIANMENT OF ACCOUNT: The accounts in which the business firm is working on is of correct proportion, the account is to make-sure such things don’t happen as to record in wrong accounts.
Finally business is accounting and vice versa.
REFERENCES FOR ACCOUNTS AND BUSINESS
-. History of accounting: university of south Australia April 30, 2013, reblieved December 28,2013 PRINTED IN south bench press
- Oldrayd David and Dobie, Alisdair: Themes in the history of bookkeeping, the Routledge compendium to accounting History, London, july 2008 ISBN 98-0-415-41094-6 chapter 5, p. 96
-Grewal, T. B. Double Entry Bookkeeping
Jain and Nararny, Advanced Accountancy
R. L. Gupta, Advance Accountancy
-Ashish k. Bhataichargya (2004), financial Accounting for Business managers, prentice Had of indium post Ltd, New Delhi
- S. N. Matheshwari (2oote) management Accounting and financial
Control, sultan channel and sons, ltd.