The Benefits of Accounting to Guillermo Furniture

The Benefits of Accounting to Guillermo Furniture Alecia Fiscus ACC/561 June 28, 2010 Peter Nwaogu The Benefits of Accounting to Guillermo Furniture Most companies, including Guillermo Furniture Store, would phthisisfulness from management report system and fiscal score in some(prenominal) areas including budgeting, conclusiveness make, fuss closure, cost-benefit balance, and behavioral implications. Ethic in accounting is historically proven to be a requirement for an makeup to be successful over time. According to Horngren, Sunderm, Stratton, Burgstahler, and Schatzberg (2008), managerial accounting is the branch of accounting that produces information for managers within an organization; financial accounting is the branch of accounting that develops information for external decision makers, such as stockholders, suppliers, banks and government regulatory agencies. [The basic help of accounting is to assist organizations in decision making. Good accounting helps an organization reach it goals by answering troika types of questions. The three types of questions answered are score card questions, attention directing questions, and problem solving questions.

Score card questions use the accumulation and categorisation of data such as annual income statements, balance sheets, change flow statements and income tax filings to enable internal and extern al parties to evaluate an organizations performance. Attention directing questions use reporting and translation information to allow managers to compare results to pre determined expectations. Problem solving questions study special transmission lines of action and recommend the best course to follow to accomplish the organizations goals.] (Horngren, Sunderm, Stratton, Burgstahler, and Schatzberg (2008). The owner of Guillermo Furniture Store could use accounting functions such as budgets and performance reports in his decisions making process. Performance reports would determine if the cuts backs... If you want to get a fully essay, order it on our website: Orderessay

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