Computers have become an important part of accounting because they make accounting processes faster and more accurate. Doing accounting manually takes a lot of time and involves many people, especially if the information... More »

Companies use adjustment entries to align expenses and revenues to the accounting period where they occurred. The process ensures that all income, expense, asset and liability accounts reflect their true values when repo... More »

Financial accounting is important because it provides an organization's stakeholders with business statements, allowing them to know if the organization is making or losing money. This information is essential in determi... More »

Basic accounting procedures include collecting financial documents, posting transactions and reconciling accounts. Other procedures include auditing accounts payable and accounts receivable, and conducting internal and e... More »

The periodicity assumption is an accounting guideline that allows an accountant to divide up the complex, ongoing activities of a business into set periods of time. The periodicity assumption is also known as the time pe... More »

According to a Houston Chronicle article by Grant Houston, strategic management accounting is a form of business inquiry that combines the accounting criteria of an organization with external factors that influence the o... More »

Accounting is known as the "language of business" because it communicates the financial state of a business clearly and concisely to those who understand accounting standards, according to New Charter University. With an... More »