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

What is income summary account, Q. What is Income Summary account? The ...

Q. What is Income Summary account? The Income Summary account is a clearing account used merely at the end of an accounting period to summarize revenues and expenses for the pe

Debit/credit, how do we credit debit cash received from owner

how do we credit debit cash received from owner

Evaluate process controls and organizational system, Purpose To assess y...

Purpose To assess your ability to:  •apply REA ontology concepts to an organization  •prepare diagrams for the identification of the flow of data through an organization

Illustrate about corporation, Q. Illustrate about corporation? A corpor...

Q. Illustrate about corporation? A corporation is an incorporated business under the laws of a state and owned by a few stockholders or thousands of stockholders. Approximately

Calculate the share price, Cooperton Mining just announced it will cut its ...

Cooperton Mining just announced it will cut its dividend from $4 to $2.50 per share and use the extra funds to expand. Prior to the announcement, Cooperton's dividends were expecte

An invoice for product x totals $1, An invoice for product X totals $1,200 ...

An invoice for product X totals $1,200 and is dated July 6, 2000 with terms 2/10-60X. If the invoice is paid on September 3, 2000, what is the net amount of payment? A. $912

Valuation of ending inventory, Q. Valuation of ending inventory? First ...

Q. Valuation of ending inventory? First a merchandising company should be sure that it has properly valued its ending inventory. If the resulting in an ending inventory is over

Explain the term- cash short and over, Explain the term- CASH SHORT AND OVE...

Explain the term- CASH SHORT AND OVER This account is used to record both a shortage and overage of cash in cash drawer. When change is made during a business day, mistakes can

Prepare the company''s bank reconciliation, Honolulu Cookie Company provide...

Honolulu Cookie Company provides the following information in order for you to prepare the company's bank reconciliation:                                    Balance per company

Advantages of weighted-average, Q. Advantages of Weighted-average? Weig...

Q. Advantages of Weighted-average? Weighted-average: Advantages because of the averaging process the effects of year-end buying or not buying is lessened. Drawback Manipulation

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