Brief Overview of Accounting Principles For Business Administration and Managers

June 9th, 2011 by Clifford

There are specific accounting principles and guidelines that people in the accounting field must follow. These have become steadfast rules that the Financial Accounting Standards Board, more commonly known as FASB, uses as a basis for their own guidelines when exercising their duties as governance in the field of professional accountants. It is important that not only accountants understand this set of principles and rules, but also that anyone involved in the field of business administration knows how the business operates financially and how it accounts for all of its financial operations. For this reason, the student seeking a business degree needs to understand this set of accounting principles. Any student attending a business administration school will have exposure to accounting and will successfully learn accounting principles.

The way that a business accounts for its financial operations is also important to stockholders and any financial institutions that the business obligates itself to because of borrowing capital. When companies offer shares for sale to the public, such companies must have their financial statements audited by an independent public accountant. All personnel involved in the administration of the business, including the accountant or accountants, and the independent public accountant(s) must certify that the financial statements have been prepared according to generally accepted accounting principles, hereafter referred to as GAAP.

The GAAP is the standard of accounting terminology and definitions, assumptions, and methods. This serves as a basis for consistency in the accounting field and the actual practices of accounting itself. When professional accountants prepare financial statements interested parties can expect the reports to be reliable, verifiable, and objective. Further, one can make reasonable conclusions in regards to the financial health of a company and can statistically compare a specific company with others in the same industry. Accounting is the final measure of how well a business performs and the financial statements are its report card. Using a uniform system of accounting resolves disparities that may otherwise arise because an individual company reports its financial situation different from another.

The well-rounded business administration student will successfully complete studies of the concepts of the GAAP and understand how the importance and impact that they have on businesses overall, including the specific area of accounting. Further, if the student seeking a business degree is interested in pursuing a career in accounting, choosing the best business administration school will help him or her in the process of obtaining certification.

What Business Administrators and Managers Can Learn

In a business administration school, students learn many useful accounting principles. A business degree can open doors to a variety of interesting occupations. Start your college search at US College Search or find us on Facebook and Twitter as well. To learn how to get a degree in Business Administration and Management or Business go to US College Search. Then you can Search For Colleges By Zip code or go to the Business Administration and Management hub under Search By Degree.

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