The essence of the accounting

Ticket №1

1. 
   The essence of the accounting
   

The accounting is a method of documentary monitoring, reflecting, and controlling for economic and financial activity of the manufacturers and businessmen (enterprises, organizations, lease ventures, joint ventures, joint stock companies, etc.), as well as a system of collection, measurement, processing, interpretation and transmission of information about economic activity of the enterprise, institution, organisation to the internal and external users to make optimal decisions. Accounting is conducted in cost, natural and labour measurers. It is based on strict observance of documentation and is carried out on the basis of state legal acts that is on the basis of the legal factors.
Accounting is the process of identifying, measuring, registration, collection, compilation, storage and transmission of information about the activity of the enterprises to the external and internal users to make decisions.
Accounting is divided into two types: financial (its purpose is to provide information of the external customers) and management (it ensures the collection and processing of information in accordance with the needs of the internal consumers).
Management accounting provides the enterprise’ administration by different information, especially about production process with the purpose of operative management and control for the production cost.
Financial (bookkeeping) accounting provides information about the financial state of the enterprise to enterprise’ administration, owners, investors, state and other interested internal and external users. Within the financial accounting in the developed countries the government sets the tax rules, which are used to provide the information to the state tax authorities and the enterprise’ administration on the calculation and payment of taxes.

2. 
   The nature of a business describes the type of business it is and what its overall goals are. It describes its legal structure, industry, products or services, and everything a business does to reach its goals. It depicts the business’s problem and the main focus of the company’s offerings. A company’s vision and mission statement also provide an insight into its nature.
   

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