A Report on “Accounting” and “Finance” and Why Are They...

A Report on “Accounting” and “Finance” and Why Are They...

A report on "accounting" and "finance" and why are they considered important for business.



Introduction

The aim of this report is to define the terms 'accounting' and 'finance'. Also it will show how accounting and finance integrate together. Furthermore, there will be a literature review arguing the available evidence on the relative topic of the report. Additionally, it will account on why they are considered important for business with the appropriate evidences. Finally, the conclusion shall be reached summarising the arguments. The conclusion will also discuss any limitations and also recommendations for future research on this topic.



Accounting

The American Accounting Association defines accounting as, "the process of ... Show more content on Helpwriting.net ...Analysis and findings

This section will look on the importance of finance and accounting for businesses that were looked at in the Literature Review. Also it will argue the ethics of accounting and finance in business due to current accounting scandals.

Businesses need accounting information in order to make knowledgeable decisions. Creditors and other lenders want to make sure that they will be paid back for the credit that they have given to a business as suggested by Wood and Sangster(2012, p.9). These decisions done by financial professionals have to administer and determine credit policy, make capital budgeting decisions and advise on debts and preferred stock to enhance profitability as portrayed by Harold Bierman (2010, p. 3). Therefore, financial reports are important for making financial decisions for business.

In addition accounting and finance are important during this time of uncertainty such as slow growth in the economy, debt and crisis. Thus financial information will seek to stabilise current growth and future state of the business. As suggested by the President of European Commission, Jose Manuel Barroso, on the current euro zone debt crisis that, banks should set aside more assets to help safeguard against future losses. Thus accounting and finance have to play a significant role in the rising of new capital to improve confidence that they could cope

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