Problem with Accounting.

What’s the difference between profits and profitability? In most companies, a net income deficiency of 30% or more, let me explain. Accounting information is at the core of virtually all of our business processes. It is axiomatic that accounting has two roles: providing financial information and providing management control information. The problem is that it is very good at the first role, and surprisingly poor at the second. Financial accounting is critical to every business. The objective is to present an accurate picture of a company’s overall performance – its profits. It grew up in the time of quill pens and arm garters, and its role is to tell shareholders how much their company earned. This discipline is well perfected and highly regulated. Just ask the Audit Committee...

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Intermediate Accounting

Accounting students usually take three years of accounting courses to complete a bachelor's degree at most educational institutions. One year of an accounting degree includes intermediate accounting, a second-level accounting class.Features Intermediate accounting introduces students to a deeper and broader level of accounting theory. The typical intermediate accounting format requires two semesters of intense conceptual course work. Topics Topics found in intermediate accounting include the conceptual framework of Generally Accepted Accounting Principles (GAAP), financial ratios analysis, equity accounting, investment strategies and financial statement preparation. Significance Because intermediate accounting courses represent the beginning...

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About Accrual Accounting

Accrual Accounting is An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received). This method allows the current cash inflows/outflows to be combined with future expected cash inflows/outflows to give a more accurate picture of a company's current financial condition.  Accrual accounting is considered to be the standard accounting practice for most companies, with the exception of very small operations. This method provides...

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