The purpose of accounting is to provide a means of recording, reporting, summarizing, and interpreting economic data. In order to do this, an accounting system must be designed. A system design serves the needs of users of accounting information. Once a system has been designed, reports can be issued and decisions based upon these reports are made for various departments. Since accounting is …
The development of accounting concepts and principles is closely related to the economic growth of the United States, as businesses grew in size, and outsiders increased their demand for financial information. Accounting principles focus on the users of accounting information. Principles have developed over a long period of time, and are continuously subject to revision as information needs…