Accounting Cycle

Accounting Cycle Paper

Michelle Brown

University of Phoenix

ACC/421

June 16,2015

Accounting Cycle Paper

Accounting is the action or the process of keeping up with the financial accounts. It also refers to the process that summarizes and analyzes the reporting of the transactions. Accounting holds many different purposes (Financial Accounting, 1999). The first purpose of accounting deals with the decision making process that provides the information that is needed to make the economic decision. The most important purpose is to prepare the financial reports that provide the information about the firm’s creditors, external parties, investors, and tax authorities. Another  purpose of accounting is to report on the financial information that deals with the cash flow, financial position, and the performance of a business (Accounting, 2014) .

I am at present a group pioneer at Cato Fashions been working there for a long time. The reason for the bookkeeping and budgetary reporting is to create the yields as the monetary reports. There are two classes of the reports, which comprise of inward and outer. The inside reports are utilized by the direct and the regular diverse operations of a business. The people that arrangement with the inner reports are alluded as administration. Administration utilizes the interior monetary reports to oversee Cato Fashions spending plan, division execution reports, and the expense investigator (What is the purpose of Accounting, 2014).

The financial reporting process is governed by the local and the international accounting standards. Generally Accepted Accounting Principles (GAAP) is the structure for the strategies for the accounting financial that is used in any jurisdiction (Financial Accounting, 2013). It also contains the ideals, rules and conventions that accountants must follow in summarizing and recording the financial statement. There is also the International accounting Standards (IASs) which issue the International...