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Q. Explain accounting structure?
The accounting structure of a profit seeking business is an information system designed to provide relevant financial information on the resources of a business and the effects of their use. Information is significant if it has some impact on a decision that must be made. Companies present this significant information in their financial statements. In organizing these statements accountants consider the users of the information such like owners and creditors and decisions they make that require financial information.
Since a background for studying accounting this Introduction defines accounting and lists the functions accountants perform. Additionally to surveying employment opportunities in accounting it differentiates between financial and managerial accounting. For the reason that accounting information must conform to certain standards we discuss several prominent organizations contributing to these standards. As you keep on your study of accounting in this text accounting is the language of business that will become your language also. You will understand that you are constantly exposed to accounting information in your everyday life.
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