General Accounting Principles and Business Reporting

This report delves into general accounting principles, emphasizing the significance of financial accounting in providing information about a business's financial performance and position. It highlights the role of accounting in informing stakeholders and aiding their decision-making processes. The report underscores the importance of businesses operating in a socially responsible manner, considering societal welfare and sustainability. It also mentions the increasing interest of stakeholders in corporate governance, social activities, and initiatives, leading to the inclusion of such information in corporate social welfare and sustainability reports. The report references relevant literature, including works by Hoyle, Schaefer & Doupnik (2015) and Bebeşelea (2014), which provide further insights into the subject matter.

Running head: GENERAL ACCOUNTING PRINCIPLES
General Accounting Principles
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1GENERAL ACCOUNTING PRINCIPLES
Table of Contents
Response to the question.................................................................................................................2
References........................................................................................................................................3

2GENERAL ACCOUNTING PRINCIPLES
Response to the question
Business organizations are a part of the society, and it must be working towards
achievement and increase in social welfare. It might seem that the financial accounting only
provides information about the financial performance and financial position of the business for a
particular period of time. Though the basic objective of financial accounting was to provide
information relating the financial performance and financial position of the business to the
stakeholders, it must be kept in mind that providing such information which helps the
stakeholders to understand the operating activities and help them in various decision making is
an important and integrated objective of the financial accounting (Hoyle, Schaefer & Doupnik
2015).
As business organizations are a part of the society and they are working towards
maximization of shareholders wealth, they must carry on their business without affecting the
society. Therefore, accountability of the business from the social perspective is important. They
must contribute towards the improvement of the society as a whole. Modern investors, different
stakeholders of the business are not only interested in financial performance and financial
position of the business, rather they are interested in the sustainability of the business. Observing
such information need for different stakeholders, companies are providing various information
such as employability, social activities and initiatives taken by the company in the corporate
social welfare report, sustainability report. Information relating to the corporate governance and
practices are also important which is addressed through the corporate governance report
(Bebeşelea 2014).

3GENERAL ACCOUNTING PRINCIPLES
References
Bebeşelea, M. (2014). Accounting information and its users. A study of the supply and demand
of accounting information in Romania. Economics, Management, and Financial
Markets, 9(4), 150-157.
Hoyle, J. B., Schaefer, T., & Doupnik, T. (2015). Advanced accounting. McGraw Hill.