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ACCT2060 - Accounting in Organization and Society

   

Added on  2020-03-13

8 Pages2028 Words120 Views
ACCOUNTING IN ORGANIZATIONS

TABLE OF CONTENTSIntroduction......................................................................................................................................1Question 1........................................................................................................................................1Question 2........................................................................................................................................2Question 3........................................................................................................................................3Question 4........................................................................................................................................4Question 5........................................................................................................................................4Conclusion.......................................................................................................................................5References........................................................................................................................................6

INTRODUCTIONModern day accounting is an intricate web of interlinked operational activities inclusiveof internal and external factors. The revolution in today’s supply chains has not diminished therequirement for corporate citizenship. Indeed, it requires citizenship which is even stronger, andefficient at including both parent firm and its several contractors, even if located offshores. Thepresent report revolves around a computer manufacturing firm and the problems it is facing withsome of its unethical suppliers. QUESTION 1Accounting information assists users in making better and efficient decisions byconsidering financial aspects of the business. Financial information users can be internal orexternal. Description of major stakeholders and their requirements is enumerated as below:SuppliersAccounting Information allows suppliers to determine credibility of business. For thispurpose they are required to assess liquidity position of business to know their working capitalefficiency. The terms and conditions of credit are based on the financial status of the company,as it helps in analyzing their business position (Rodrigue, 2014). On the basis of this informationthey determine credit policy for trading transactions. Local communitiesLocal communities are interested in accounting information so as to ensure thatoperational activities of business is ethical in order to protect the stakeholder’s interest.Considered information also helps in evaluating the tax return’s reliability been filed on thebehalf of business. For this purpose, they check financial statements and associated accounts.Customers Customers make use of accounting information in order to consider the business positionand performance, especially, when they are involved for a long term, as it allows maintaining abalanced business source. For this purpose; they need information regarding growth in revenuesand market based and same can be collected from the income statement.Employees1

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