By John R. Dyson
Accounting for Non-Accounting scholars is a hugely reputed textual content for is accessibility and readability. The e-book combines easy language and genuine international examples making it excellent for college students with very little earlier wisdom of economic or administration accounting. The textual content covers the necessities of book-keeping and the principles of accounting in a non-technical variety and teaches scholars definitely the right questions that every one non-accountants should still ask who are looking to excel of their stories and profession.
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Extra info for Accounting for Non-Accounting Students
External auditors are entirely independent. They come from outside the entity, they are not employees of it and they do not answer to its managers. When they have finished their work they present their findings to the owners. They do not report to any of its managers. CHAPTER 1 THE ACCOUNTING WORLD 11 External auditors formally report to the owners on whether the financial accounts represent what is called ‘a true and fair view’ of the entity’s affairs. They may do some detailed checking of its records in order to be able to come to such a view but normally they would be selective.
Relevance Financial statements should not include matters that prevent users from gaining what they need to know. The overall picture may be obscured if too much information or too much detail is given. So, in short, the information provided must be relevant. In the jargon of the accountancy profession this means that financial statements should give a true and fair view of the financial affairs of the entity. You are going to come across all the rules that we have discussed in this section in one form or another throughout the rest of the book but we now need to examine which professional and statutory requirements cover accounting.
Similarly, as the 32 PART 1 INTRODUCTION TO ACCOUNTING owners of a business they will need to include any profit due to them on their own personal income tax return. As a result of such considerations most entities have to keep some basic accounting records and to compile a rudimentary profit and loss account once a year. The precise form and content of such records and accounts is up to them. As we mentioned in Chapter 1, a new form of partnership, limited liability partnerships, was introduced in 2001.
Accounting for Non-Accounting Students by John R. Dyson