--%>

What are the steps involved in Process of Accounting

ACCOUNTING PROCESS:

 The process of Accounting involves the following steps:

a) Data creation and collection which provide the raw material for Accounting. The data Collected is historic in the sense that it refers to events that have already taken place.

b) Recording of data, this is done in accordance with the laid down concepts and conventions of Accounting.

The processing methods employed for recording may be manual, mechanical or electronic computer are generally taking to the primary method of recording and processing.

c) Data evaluation is regarded as the most important activity in Accounting these days. Evaluation of data includes controlling the hospital activities with the help of budgets and standard costs, analysing the flow of funds and analysing the accounting information for decision making purposes by choosing among alternative courses of action. The analytical and interpretation work of Accounting may be for internal or external use and may range from snap answers to elaborate reports. Data evaluation has another dimension and can be known as auditor work which focuses on verification of transactions as entered in the books of Account and authentication of financial statements.

d) Data reporting consists of two parts-external and internal. External reporting refers to the communication of financial information viz. earnings financial and funds position about the hospital to outside parties i.e. trustees, Government Agencies and regulatory bodies. Internal reporting is concerned with the communication results of financial analysis and evaluation to hospital management committee & decision making purposes.

The  main objectives of financial reporting are as follows:

a) It should provide information that is useful to present and potential investors, creditors, and other users in making national investment credit and similar decision.

b) It should provide information about the economic resources of an enterprise, the claims to those resources and the effects of transactions, events and circumstances that change resources.

c) It should provide information about an enterprise's financial performance during a period.

 d) It should provide information about how an enterprise obtains and spends cash, about Accounting Concepts

its borrowing and repayments, about its capital transactions and about other factors that and Application may affect its liquidity or solvency.

e) It should provide information that is useful to managers and directors in making decision in the interest of the enterprise and the owners. The emphasis of these objectives is on the information needs of external users common to for profit publicly held enterprise or corporate sectors. However, you may substitute the terms hospital for enterprise and community for owners and the objectives are equally applicable.

It is necessary for each and every student of accountancy to learn the basics of accountancy because there is more completion for them in the future regarding this subject. Students should get online assignment help for accountancy subject such that they can get help like preparation of assignments, online solutions to their queries. They have to pay only a nominal fee and then submit their requirements about the subject. This system of teaching is termed as online tutoring.

   Related Questions in Managerial Accounting

  • Q : What is Cost Finding Cost Finding :

    Cost Finding: Cost finding methods generate cost data by analytical or sampling techniques. Cost finding methods are suitable for certain type of costs, like indirect costs, items with costs underneath set thresholds in the programs,

  • Q : Management accounting According to

    According to Martin and Steele (2010, p.13), “The two principal professional associations in Australia – CPA Australia (the CPA) and the Institute of Chartered Accountants in Australia (the Institute) have indicated their awareness of the significance of issues of sustainability reporting and develo

  • Q : Explain Full-Absorption Costing

    Full-Absorption Costing: It is a technique of costing that assigns (or absorbs) all labor, material, and service or manufacturing facilities and support costs to products or another cost objects. The costs assigned comprise those which do and do not d

  • Q : How do tax influence the cost of debt

    Normal 0 false false

  • Q : Actual costing A function of measuring

    A function of measuring and assigning production costs to determine the unit cost. Actual revenue assigns the real cost of materials, labor, and overhead to ma

  • Q : Explain Performance Measurement

    Performance Measurement: A means of computing effectiveness, efficiency, and outcomes. A balanced performance measurement score-card comprises financial and non-financial measures focusing on the quality, cycle-time, and price. The performance measure

  • Q : What do you mean by the term Mission

    What do you mean by the term Mission statements? Briefly describe it.

  • Q : Provisional Entries Describe

    Describe Provisional Entries?

  • Q : Explain Managerial Cost Accounting

    Managerial Cost Accounting System: The organization and processes, whether automated or not, and whether portion of the general ledger or stand-alone, which accumulates and reports constant and trustworthy cost information and perform

  • Q : Define Common Cost Common Cost : It is

    Common Cost: It is the cost of resources used jointly in the production of two or more outputs and the cost can’t be directly traced to any one of those outcomes.