Accounting can be defined diversely. It can be seen a complcated and difficult simple calculation, while it is the dynamic and never-ending art of finance. Namely, it depends on how relevant people find it out.

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Kyu-min, Lee & Qian Xu

01280297,01247376

Business Accounts

Accounting and Accountants in Business

Module : M0 7100 Financial Accounting

Student Number : 01280297 & 01247376

Name : Kyu-Min, Lee(AF) & Qian Xu( AC/FT )

Tutor : Graham Digge

Table of Contents

Introduction…………………………………………………………………………4

Results of Investigation……………………………………………………………..4

1, Nat West Bank……………………………………………………………………4

2, Oriental Supermarket……………………………………………………………..5

Conclusion…………………………………………………………………………...6

Recommendation……………………………………………………………………6

Appendix…………………………………………………………………………….7

Bibliography…………………………………………………………………………7

Executive Summary

Accounting can be defined diversely. It can be seen a complcated and difficult simple calculation, while it is the dynamic and never-ending art of finance. Namely, it depends on how relevant people find it out.

Nat West Bank plc has internal accountant and produces full final accounting reports such as profit & loss account, balance sheet and cash flow statement as well as director’s report ( ceo’s report) and auditor’s report. So, they perceive the needs and importance of accountant, and place on contribution of accountant as essential element for business. Accountants also analyse the reports and forecast for the future.

While, Oriental Supermarket produces basic accounts such as profit & loss account, balance sheet, but not cash flow statement. Even though they has external accountant, because their main concern is taxation, they do not see the full benefit of accouting. In addition, they have no stakeholders apart from government ( Inland Revenue) and themselve. So, they find that accounting is the necessity evil unlike Nat West Bank.

Recommendation for Oriental Supermarket include :

1, the appropriate perception and understanding of the need of accounting.

2, specialisation of the finance department.

3, recognization of competitor.

4, collecting previous financial accounts for forcast.

INTRODUCTION 

According to the interviewers who we had words with, accounting is defined as a simple description of income and payment of business and as complicated procedure to reach right balance of business. As they define accounting respectively, the definition of accounting can be various. 

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 Back in 1941, the Committee on Terminology of the American Institute of Accountants (now the AICPA) defined that accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the results thereof. While, it can be defined that accounting  is a subject which develops faster than most textbooks can be written. The basic core is constantly modified as new events give rise to new

opportunities. This  never-ending process of change has been summarised that accounting is ...

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