Introduction
Philosophers and great scholars have always argued that there is no single thing in the existence that is purely new. Everything that human beings take part in must have had their origin in the past, but due to human necessity, several changes could have taken place. To qualify this assertion, they claim that the concepts of accounting that are practical in the modern society have a close relationship with the Bible’s explanation of the subject. Internal control procedures, objectives of accounting and managerial accounting are some of the topics that the great scholar's claim have been extensively explored by the Bible. These fundamental accounting concepts have been referenced to Biblical events covered between 1800 B. C.
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It is recorded that the chest, in which money was carried, was taken for scrutiny to the control office that was under the administration of the Levites. The Levites would then check the amount of money in it before it was handed over to the king's secretary and the representative of the chief priest, who carried it away. In such a case, the Levites exercised total control of the funds to ensure that every single cent passed through their scrutinizing table. Nonetheless, the representative of the chief priest alongside the king's secretary practiced dual custody of the funds. In modern accounting, the subject of the double charge of assets is widely practiced to ensure transparency and accountability (Hagerman, …show more content…
However, it touches on budgeting, the benefit of participation in budgeting and advises on product evaluation. All the three aspects are core topics in managerial accounting (Fooshee, 2010). In Luke 14:28-29, the Bible reports the importance of budgeting. It says that anyone wishing to set up a tower would first sit down and calculate the whole cost before he or she goes ahead to build the structure. This biblical assertion encompasses two aspects of managerial accounting: budgeting and cash flow forecasts. Even in the modern accounting, the budget must first be considered before a specific business project is
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
Although, it can be argued that the merchants of Venice created modern finance, they cannot be credited with the initial idea of double-entry accounting. The roots of double-entry accounting and accounting as a whole, can be traced back much further. Centuries before the Venetian merchants began using double-entry accounting, other businessmen were accounting for their transactions with a method that used two pages of paper, one for the person who received money or property and another for the one who gave it. Although, accounting records had been kept in some form for hundreds of years prior to the developments of the Venetian merchants, the merchants of Venice are believed to be the first to use a method that required two entries for each transaction. By requiring two entries, the Venice merchants could easily see if their books balanced. This form of record keeping also made it easier for the merchants to compute different figures such as profit, which was not a common idea at the time....
This case assignment will discuss managerial accounting and different income statements a business owner may use internal to the company. Divided into two parts, part one will discuss and analyze the difference between managerial and financial accounting, the needs for financial information used for internal purposes. Additionally, it will focus on the managerial accounting profession and how its roles have changed in today’s business. Expanding on the profession, it will comment on the Certified Management Accountant (CMA) certification and how it differs from the CPA certification. Part two of this assignment
The stereotypical image correlated to the account mirrors that of a public accountant. An individual working as a public accountant can expect to work as an independent third party to a multitude of companies. As this third party it is their duty to oversee financial transactions to ensure that the statements of not only the company, but also its’ supporting companies, correctly correspond and match up to the position, results and cash-flow of the clientele. This general quota outlining a public accountants job description is not the same for a private accountant. The main difference between a public and private accountant is that unlike the public and its handle on a multitude of accounts, a private accountant specializes with a certain company or field. With this specialization, a private accountant tackles setting up a system that records the transactions within the business. The recordation of the transactions is then generated into statem...
Marshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.
The authors examine scripture from various places in the bible to make their case that the bible is full of economic advice. Additionally, the authors state (2010), “for centuries, cultures have looked to the Bible as a rich resource that has helped people think about the way morality and economics come together.” (Hill & Rae, 2010, p. 23) The author’s most basic understanding is that morality and economics are intertwined, and in order to fully understand economics one must understand the bibles economic standards. The authors laid out seven biblical teachings on issues such as economics, wealth creation, poverty, injustice, and assets throughout the book.
Wulke, R., & Kohl, B. (2004). Cost Management: Roadmap to Project Success -Supplementing Accounting Systems for Project Cost Management. Cost Engineering, 46(8), 11-13. Retrieved from: http://eds.a.ebscohost.com.ezproxy.chadronstatelibrary.com/ehost/pdfviewer/pdfviewer?sid=1dccb277-c3b2-466f-8b9f-d0549574afa8%40sessionmgr4002&vid=5&hid=4205
Financial and Managerial accounting are used for making sound financial decisions about an organization. They provide information of past quantitative financial activities and are useful in making future economic decisions. (Albrecht, Stice, Stice, & Skousen, 2002) The same financial data is used to derive reports for each accounting process yet they differ in some ways. Financial accounting primarily provides external reports for external users such as stock holders, creditors, regulating authority and others. (Garrison, Noreen, & Brewer, 2010) On the other hand Managerial accounting is concern with providing information that deals with the internal viability of the organization and is tailored to meet the needs of an individual organization. (Albrecht, Stice, Stice, & Skousen, 2002)
Financial accounting is the analysis, classification, and recording of financial transactions and reporting such information to respective users especially external users who use the information to make decisions about their engagements with the entity. In financial accounting general purpose financial statements are used for external reporting. The public by standards imposes the development of the statements through respective national professional bodies, International Accounting Standards Board and respective company Acts for various nations.
Proctor, R. (2012) Managerial Accounting: Decision Making and Performance Management. Fourth Edition. Harlow: Pearson Education Limited.
Managerial accountants need to use accounting information in seeing to it that they are able to plan, evaluate the company performance, manage risks and control the business operations in a manner that is deemed beneficial to the business as a whole (Caplan, n. d). This can be achieved through: having high standards of ethics in all situations; employing the techniques of management reports, budgetary control, and analysis of fund flows and financial statements; making prudent capital investment decisions; and maintaining continuous quality control systems.
Managerial accounting has changed over the years. Managerial accounting focuses on more than the financial aspect. We will be looking at how managerial accounting affects the business world today. Business also look to the economy, federal taxes, and the financial market so it can make the best decisions for their business.
Accounting has been a living part of history since the Neolithic period and remains a prevalent and ever-evolving profession still to this day. This essay therefore proposes to look at the significance and role of history specifically related to the accountancy field. In order to substantiate this claim of the importance of accounting history, numerous benefits of accounting history will be presented. Factors such as the use of historical research and its availability thereof to constantly develop accounting policies will be discussed as well as how historical accounting practices can be used to understand current practice and assist in the training of individuals in the accounting field. Lastly, the importance of history in the development
They form the basis upon which modern accounting is based. This essay will explain how each of these concepts shape the information provided to the key business stakeholders. Then, the definition of the key business stakeholders will be addressed.
The revenue/cost period-: Revenue and the cost period in accounting that the company get income from normal business activities. It’s referred to normal business income that the company got by selling their product and service.