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Financial accounting has the purpose to provide a clear view of a business’s financial position and performance for the year by recording, summarizing, reporting and processing a great deal of transaction that occurs throughout the year. However, there is a major factor that differentiates financial and managerial accounting. Financial accounting focuses in providing information to the third party that exist outside the organization while managerial accounting is used by managers within the organization to make decisions that will bring the highest profit with the lowest risk possible. According to (Conesa & Martinez, 2004), accounting information is the result of a communication process that creates specific features in an environment and act as an answer for the main and most powerful users.
One can obtain mastery level in financial accountancy by years of studies and hands-on-practice and is signified by an accounting authority. Certified Public Accountant (CPA) is the primary accounting designation in United States while United Kingdom and India’s primary designation is Charted Accountant (CA). Canada’s main accounting designations are divided into three categories which includes Charted Accountant (CA), Certified General Accountant (CGA) and Certified Management Accountant (CMA).
The main purpose of financial statement is to provide a complete set of financial statements for stakeholder to evaluate a company’s operating performance throughout the year to determine the best route to be taken for a better future. A complete set of financial statements include statements such as balance sheet, income statement and cash flow statement the captures the company’s performance over a particular period of time. According to Generally Accepted Accounting Principles (GAAP), these statements are prepared quarterly and annually for external parties such as investors, creditors, regulators and tax authorities.
Management accounting or also known as managerial accounting is a series of procedure that includes identifying, analyzing, recording and presenting an organization’s financial information which serve the sole purpose for internal management’s usage for planning, controlling and also decision making.
Unlike financial accounting, managerial accounting is more focus on providing reports and useful information to aid internal users such as managers and entrepreneurs to plan and control their business activities. Managerial accountings are often used in area such as planning and budgeting, decision making and also measurement of performance.
- Planning and Budgeting
Managers use managerial accounting to decide on selling price of a product in order to determine the price that should be charged so that the cost of production can be reimbursed while helping the company to gain maximum profit. Managerial accounting also helps managers in management of company’s finance and operation to ensure maximum profit with minimum wastage that allows the business operation to flow smoothly. Capital budgeting and master budget are the most important topics that can help managers in the planning and budgeting area.
- Decision Making
Managers uses managerial accounting to estimate the profits and opportunities that can be gain by conducting a certain project before choosing the project that is most suited and offers more benefit to the company. Costing techniques are also used by managers to choose between projects that are being offered to them.
- Measurement of Performance
Actual results of operation will be compared to the budgeted figure prepared by managers to evaluate the operation performance of the business. Each department’s performance will be evaluate individually by using accounting techniques such as standard costing so that necessary adjustments can be made in that specific department to improve its performance and contribute better to the company.
Taxation is the process where the legislative branch of federal government levy charges on individuals or property to serve the purpose of fund raising for the state government.
Citizen pay taxes to government in exchange of protection on his or her property and the taxpayer themselves. The charges also act as a form of financial support to government to undergo changes for general advantage. The government has the right to request all citizen and property within its boundary of power to share the expenses incurred while running the government as the existence of government is essential and cannot cease to exist.
Taxes are divided into 2 major categories which are direct tax and indirect tax. The difference between these 2 types of taxes is that direct tax is imposed on an individual or organization while indirect tax imposes tax o products and services. A taxpayer will pay taxes to government for various purposes such as real property tax, personal property tax, income tax and also the taxes on assets. Direct tax is often imposed on one entity. For instance, sales tax is paid by the buyer in retail setting.
Indirect tax is a tax that is imposes on products and services and often acts as the catalyst to increase the price of products and services. When the price of goods increased, consumers are required to pay more for the products and the consumers are indirectly paying taxes to government. By increasing the price of goods, indirect tax are often shifted from one taxpayer to another and the end consumer often end up being the one to bear the indirect tax. Examples of indirect taxes would be such as cigarettes, fuel and cigarettes.
Based on the economy context, the tax levied on an individual or entities will be determined by the law. However, it does not influence the flow of tax burden in current market. Economic burden of tax can be estimated by comparing the price of goods after tax had been imposed with the price of goods before imposing the tax. The market forces will determine on who will bear the economic burden of tax.
Auditing refers to activity carried out by qualified personnel by investigating, examining and evaluating the objective evidence, the sufficiency and completeness along with established procedures or applicable documents and also the effectiveness of implementation by documenting all of these activities into a carefully planned document. Auditing is a common term in accounting field as it is use for internal control, quality and project management, water management and even energy conservation.
Auditing is an organized and independent way to examine date, statements, records and operation performance of an organization for a stated purpose. The auditor will observe the proposition before him so that he can examine, collect evidence and evaluate it based in the basis formulated of his judgment which will later be revealed in his audit report. The report will reflect on the organization’s risk management, control and jurisdiction process which he will also give his opinion on the adequacy of control in terms of financial and other matter and ways to improve the effectiveness and minimizing the risk of operation.
The aim for the appraisal to be carried out is to measure or calculate the value of something. The process of producing this appraisal involves audit by an independent professional which will later express their opinion regarding the fairness of statement and quality of performance after a period of observation and examining. Auditors of financial statement can be divided into 2 categories which are external auditor and internal auditor.
- External Auditor
External auditor is an independent firm which is approached by clients to request for their opinion on the company’s financial statement on whether the statements are free of material misstatements due to fraud and error. External auditors are required to express their opinion on the company’s internal control over financial reporting where they are needed to perform other agreed-upon procedures, related or unrelated to financial statements if is approached by a publicly traded company. The external auditors will be paid by the company being audited as they are regarded as independent auditor.
- Internal Auditor
Internal auditors are hired by the company they audit. They are often seen to work for government agencies, publicly companies and non-profit organization across industries. Internal auditors will introduce a systematic and disciplined approach to the company in order to improve the effectiveness of risk management, control, and also the governance process to help the company to achieve its objectives. Professional auditors will provide their independent and objective audit and consulting services which emphasis on evaluating whether the board of directors, shareholders and stakeholders have reasonable conviction to ensure the company’s governance, risk management and control are functioning effectively.
Academic Writing for Non-Native
The subject name speaks for itself. Academic writing for non-native is a subject that helps to improve the English language of non-native speaker in terms of both writing and speaking skills. The main purpose of this subject is to overcome the most vital weakness that all non-native English speakers faced which is organizing ideas.
This subject’s aim is to increase the conscious of the convocation of written academic literacy among students. This will greatly improve student’s writing ability in various variety of text by focusing on the right way of arrangement and construction of sentence, sentence that is easily understand and connected in a logical manner with an appropriate style of writing. By doing so, it is possible improve the English language of students that is undergoing their degree programs. It will be a great help for students in their assignments, reports and even their examination on essays.
Upon completion of the course, the expected result from student would be:
- Able to grasp the meaning and apply it appropriately according to the circumstances in written academic literacy.
- Able to express logical idea in their writing and express themselves better that allow better understanding of others.
- Develop their opinion and thoughts in text.
- Apply relevant strategies for different task, from preparation of degree program’s course work to an unforeseen examination essays.