Accounting methods have a significant effect not only on decisions created by management teams but also on the behavior of investors, creditors, regulatory agencies, shoppers, and employees. By way of their teaching, study, and specialist activities, faculty members in Wharton’s Accounting Department strive to develop the best approaches to measure and communicate an organization’s economic activities.
It offers with payment of wages and salary to employees. A common wage report specifics information about standard spend, dearness spend, dearness allowance, other allowances and bonus and deductions from salary and wages on account of provident fund, loans, advances, taxes and other charges. The method generates reports about wage bill, overtime payment and payment on account of leave encashment, and so forth.
Accounting is connected with the financial elements of the organization. Monetary reporting is, hence, important. Internal controls are needed to ensure that the auditors and the accountants of the organization make all the monetary reports appropriately and to guarantee that the financial planning is completed accurately. These reports like the balance sheet and the profit and loss statement require to be in the prescribed form followed by the organization. They also want to conform with the basic accounting concepts and principles and the laws governing the organization.
Men and women in society coexist by establishing relationships with each other. One more way of viewing society is by segmenting it into different groups or arenas, for instance the social, economic, organizational and political arenas (Kyriacou, 2007, Lecture 1, p4). In order to function efficiently, these different arenas need to communicate and it is accounting info that facilitates this communication. According to Kyriacou (2007, Lecture 1, p5) accounting information serves numerous important purposes, for example assisting users in making informed decisions, in relation to the efficient allocation of scarce resources.