Importance Of Accounting And Finance

1801 Words 8 Pages
Register to read the introduction… Edwards, John J. Hampton, Wood and Sangster have shown the role of accounting and finance in controlling resources of a business, where business will account for what it owns and owes. That is goods purchased and expanses prepaid or accruals. In addition to this financial decisions will be made such as: the impact on current assets in deciding the creditor limit and current liabilities when deciding on payments of debts.

Also Michael Jones portrays the effect of costing in planning for expansion or cutting down expenses of businesses. The author has shown a significant role of accounting and finance in the rise of businesses. Moreover, he has shown how cost can be allocated and that effective planning through budgeting can help business flourish. Also, managers can use the above information to decide day to day decisions of a business.

On the other side, the author Eddie McLaney still doubts whether accounting and finance without ethics can play a great role to the business world. This is due to the rise of different scandals such as Enron, where much of accounting and financial information was misleading.

Analysis and findings
This section will look on the importance of finance and accounting for businesses that were looked at in the Literature Review. Also it will argue the ethics of accounting and finance in business due to current accounting
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Moreover, a further research on accounting standards can be made to ensure that businesses are assisted by the standards.

References and bibliography:
Alexander, D., & Nobes, C. (2010). Financial accounting: an international introduction. (4th Ed.). Harlow: Financial Times Prentice Hall 2010.
Bierman, H. (2010). An introduction to accounting and managerial finance. Singapore ; Hackensack, NJ : World Scientific 2010.
Hampton, J. J. (1983). Financial decision making. (3rd Ed.). Reston, Va: Reston Publishing Company 1983.
Jones, M. (2006). Management accounting. Chichester: Wiley 2006
Kolb, W.R., & Rodriguez J.R. (1992) Principles of finance (2nd Ed.), Lexington: D.C. Heath and Company
McLaney, E. (2011). Business finance theory and practice. (9th Ed.). Harlow, England: Financial Times/Prentice Hall 2011.
Wood, F., & Sangster, A. (2008). Business accounting 1 UK GAAP (1st Ed.). Essex: Pearson Education

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