Discuss about the accounting conventions & standards that are being followed by them & the reasons thereof? Also they to find out as to how the accounting information collected by the JD, helps in making different managerial decisions.

Meet the Accounts/Finance personnel of any organization and find out about the activities carried out by them? Discuss about the accounting conventions & standards that are being followed by them & the reasons thereof? Also they to find out as to how the accounting information collected by the JD, helps in making different managerial decisions.

Sol.1 Accounts/Finance Personal has lot of duties to do. From Book keeping, prepare accounts, budgeting to classified expenses. Now for bookkeeping we have computers, but a lot was to be done afterworlds.

i)                    The Accounts personnel has to work sure that all the expenses have been classified correctly mainly for tax reasons.

ii)                   They prepare accounts fro the bank. If a business needs a loan the bankers will certainly need a credible set of accounts.

iii)                 They also help the organization with Budgeting or cash flow forecasting as well as how to arrange for financers what more they also help in calculating surplus cash, organization may have in the coming months, so that appropriate investment can be made to earn some extra income.

iv)                 Apart from that a account or Finance personal may also be advised its company on any tax issues.

Some of the conversation and standards following by account personnel’s are:

i)                    Historical cost convention: This conversion requires transactions be recorded at the price ruling at the time, and of assets to be valued at their original cost. Using this convention, no-account is taken of changing prices in the economy.

ii)                   Monetary measurement:- Accountants do not account for items unless they can be quantified in monetary terms. Accountant use their concept because things like skill, morale and quality of management cannot record in books of account.

iii)                 Realization:- With their conversion, accounts recognize transaction sat the point of sale or transfer of legal ownership- rather they just when cash actually changes hand.

Accounting standards o r concepts:

i)                    Going concern:- It is assumed that the business will exit for a indefinite period of time and transactions are recorded from this point of view. On the basis of this assumption, fixed assists are recorded at their original cost and are depreciated in a systematic manner without reference to their market value.

ii)                   Dual Aspect Principle: This principle holds that every transaction entered into by a firm or an institution will have two aspects. one may, therefore say the assets are equal to the claims of the owner on the business.  The dual aspect will enable accountant to develop all the rulers which are required for a proper record, of the transaction.