Nature of accounting function, Accounting Basics

Assignment Help:

An accounting is a service function. The main accounting executive through whatever name he is termed as holds a staff position except inside his own department where he exerts authority. It is in contradistinction to the roles played through production or marketing executives  who  hold  line  authority:  The  responsibility  of  the  accountant  is  advisory  in character. He works by the authority of the main executive. The accounts and or finance departments do not exercise direct authority over  line  departments. In decentralized structure along with a number of divisions and units, the accounting executive though exercises what is termed as the functional authority over all the accounting staff deployed in differ segments.

There are two facets to the function of the accountant. For the top managers he works like a watchdog and for lower and middle level managers he serves as 'helper'. The watchdog role is generally performed by 'score-keeping' task of accounting and reporting to all levels of management. The 'helper' role is usually performed through the task of directing managers' attention to problems and assisting them in resolving problems. Mutual understanding and rapport among the accountant and the manager, in the tasks of attention-directing and problem-solving can be enhanced if accountant and his staff frequently interact along with the line managers and guide them in matters related with preparation of budgets and control documents along with that they might not be conversant. This will instill confidence among line managers regarding the reliability of reports.


Related Discussions:- Nature of accounting function

Antidilution of ownership, Antidilution of Ownership The right of an i...

Antidilution of Ownership The right of an investor is to continue the same percentage ownership of an organizations main stock in the event that the organization issues more s

What is the center of gravity, A supplier to the electric utility industry...

A supplier to the electric utility industry produces power  generators.  The Transportation costs are high.  One  market area includes the lower part  of  the Great  Lakes region

Jane has a $35, Jane has a $35,000 bank loan that she wishes to pay off in ...

Jane has a $35,000 bank loan that she wishes to pay off in five equal annual payments with 12% interest. If the first payment is due one year from today, what will be the amount

Importance of the bank statement, Importance of The bank statement Bank...

Importance of The bank statement Bank sends out bank statements each month. It's significant that this statement and checking account balance balances. There are certain items

Solved questoin of account, want a question of general jouranal , t account...

want a question of general jouranal , t account ,traial balance , income statement and balance sheet

Amount of dividends, Houston Corporation has the following stock outstandin...

Houston Corporation has the following stock outstanding:     In 2012, Houston paid $330,000 in dividends. No dividends were paid in 2011 or 2010. Required : a)

Hello, Hello, I'm having trouble understanding Direct Cost, Overhead Cost a...

Hello, I'm having trouble understanding Direct Cost, Overhead Cost and Indirect Cost. ***Also Period cost and Product cost. please can anyone explain it and give examples for eac

Ratio analysis, want to know sbp bsc rato analysis for 2010 t0 2014

want to know sbp bsc rato analysis for 2010 t0 2014

Statement credit column of the work sheet, Revenues emerge in the Income St...

Revenues emerge in the Income Statement credit column of the work sheet. The two revenue accounts in the Income Statement are credit column for Micro Train Company are service reve

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd