Importance of Accounting Standards and Cash Management in Business

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author Note:

1FINANCE
Reflective journal writing
I am born and brought in a family whose source of income is business. My family has
a factory of clothes for infants. Therefore, from my childhood days I am quite acquainted
with the accounting terminologies. As I grew up my interest towards business also grew. The
importance of accounting terms and the effect of each term has in business I came to know
during my course of study. Impact of accounting and its necessity in a business for a sound
business activities is so significant. Many standards were prescribe by the concerned body to
solve the issue that has been taken place during business activities. Even while attending the
course I found that accounts is a broader term. There are several branches or groups in which
accounts is been divided such as Financial Accounting, Cost Accounting and Financial
Management. During my study I hold a good command over the subject. As I was familiar
with the basic terms of accounting, the concept regarding those such as asset, liability,
income, loss, expense, revenue, as well as the accounts that has been classified as per the
golden rule of accounting. With the help of the golden rule of accounting basic journal entries
were recorded under the respective accounts debiting and crediting the item as the rule
indicates (Jannelli and Tesone 2013).
For recording very transaction that has taken place in the business there is a set of rule
prescribed in order to avoid fraudulent activities and misrepresentation of the facts. Therefore
to understand the use of the accounting standards it more important to understand the
intentions and the usefulness it provide for overcoming the problems associated with
accounting. The accounting standard helps in maintaining proper code of conduct of business.
The rules as well as regulation that is followed is very severe in order to record along with
maintaining the record. Through applicability of standards it has helped in managing the use
of monetary resources sighted by the government so that the fiscal flow can be maintained.