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

Non-current assets, What should companies not show as non-current assets in...

What should companies not show as non-current assets in their balance sheets? A  plant bought on hire purchase B  plant fully depreciated C  plant held on finance leases D  pla

What do you mean by purchases account, Q. What do you eman by Purchases acc...

Q. What do you eman by Purchases account? In periodic inventory procedure a merchandising company uses the Purchases account to record the cost of merchandise bought for resale

Adjusting entries, Hugo Company has a five-day workweek and pays salaries o...

Hugo Company has a five-day workweek and pays salaries of $35,000 each Friday. 1. Prepare the adjusting entry required on May 31, assuming that June 1 falls on a Wednesday. 2. Prep

Pro forma financial statements, Pro forma Financial Statements In ...

Pro forma Financial Statements In accounting, a financial statement in which the amounts begin are fully or partially estimates; from the Latin for "as a matter of form."

What are fixed asset, Fixed asset are assets which provides the business fu...

Fixed asset are assets which provides the business future benefit Fixed assets are those which are tangible in nature and is not meant for sale in the near future and from whi

Concepts of accounting, Q. Concepts of accounting? - The major underlyi...

Q. Concepts of accounting? - The major underlying assumptions or else concepts of accounting are (a) business entity (b) going concern (continuity) (c) money measurement (d) st

What are derivatives?, Derivative instrument is an asset which develops i.e...

Derivative instrument is an asset which develops i.e. takes its origin from another asset. The simplest form of derivative is a forward contract, "It is an agreement to buy or s

Accounting cycle, Is here sample assignment for accounting cycle?

Is here sample assignment for accounting cycle?

Define Accounting, define accounting. Briefly explain its concepts

define accounting. Briefly explain its concepts

Show debit and credit column, Q. Show Debit and Credit column? - Debit ...

Q. Show Debit and Credit column? - Debit column. In the debit column the sum of the debit is on the same line as the title of the account debited. - Credit column. In the cr

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