Quiz 1: Accountingpresent and Past

Business

This exercise provides an opportunity to gauge where the students are in terms of their prior background in accounting, be it practical or educational, and to clear up some of the common misconceptions (i.e., explain that accounting goes beyond the "how to" aspects of bookkeeping and involves the use of judgment).

Accounting profession: Accounting is the profession of accountants whose business is to record business transactions in a systematic and comprehensive manner. Their work includes summarizing, analysing and reporting those financial statements to different users like organization, government and investors etc. Accounting helps in creating financial statements using the Generally Accepted Accounting Principles (GAAP). The future of the accounting profession by Muhammad Azizul Islam on Feb 17,2017. This article discusses about the following changes in the accounting profession expected to be encountered by the year 2025: 1. Smart and Digital technologies: Accountants will have to learn and study smart technologies to enhance their knowledge of various software systems and work smartly. 2. Globalization: The employment opportunities will be increased due to globalization and increasing needs of the various global businesses. 3. Regulations: More strict and effective regulations about to happen because of massive tax avoidance, transfer pricing and money laundering. There will be a huge impact on the accountants in inter-governmental tax actions to limit their profit shifting and evasion of taxes. 4. Teaching and Research implications: Accountants will have various implications in the fields of teaching and research. Lot of training is needed to the new comers of the industry in the field of commerce and accounting. These needs shall be fulfilled by the experienced accounting professionals in the future. Research in the fields of cloud computing, data analytics, software developments, big data and various other technological changes to improve the accounting and preventing frauds attached to it.

Accounting is a process of identifying, measuring, and communicating economic and financial information about an organization for the purpose of decision making and forming judgments. Accounting basically means financial accounting. Financial accounting is a process of preparation and reporting of financial statements for an organization. The financial statements provided by the financial accounting enable the users to know about the financial position and performance of the organization and also to make decisions. An accountant is a person who prepares the books of accounts, finalizes the accounts and who submits the finalized accounts to the management of the organization to know about the firm's financial position and performance of the entity. Accountant is a qualified person (Bachelor's degree in accounting) having expertise, subject knowledge of accounts, analytical skills that are applied by him during the course of preparation and finalization of accounts. He also uses his judgment in many activities whenever required in the course of preparation of financial statements of an entity.