Accounting
Many people think of accounting as a highly technical field which can be understood only by professional accountants. Actually, nearly everyone practices accounting in one form or an other on an almost daily basis. (9) ... Whether you are preparing a household budget, balancing your checkbook, or preparing your income tax return, you are working with accounting concepts and accounting information.
Accounting has often been called the "language of business. " (10) ... What are "corporate profits" What levels of corporate profits are necessary to finance the development of new products, new jobs, and economic growth One cannot hope to answer such questions without understanding the accounting concepts and terms involved in the measurement of income.
Since a language is a means of social communication, it is logical that a language should change to meet the changing needs of society. (11) ... For example, as society has become increasingly interested in measurements more meaningful and more reliable. (12) ... Although ac counting has made its most dramatic progress in the field of business, the accounting functions is vital to every unit of our society. An individual must account for his or her income, and must file income tax returns. Often an individual must supply personal accounting information in order to buy a car or home, to quality for a college scholarship, to secure a credit card, or to obtain a bank loan. (13) ... The federal government, the states, the cities, the school districts, all must use accounting as a basic for controlling their resources and measuring their accomplishments. Accounting is equally essential to the successful operation of a business, a university, a fraternity, a social program, or a city.
(14) ... therefore, some knowledge of accounting is needed by all citizens if they are to act intelligently in meeting the challenges of our society.
A. Accounting has changed with the passage of time
B. In accounting, too, changes and improvements are continually being made
C. In very election the voters must make decisions at the ballot box on issues involving ac counting concepts
D. We live in an era of accountability
E. Accounting has become an indispensable part of modern life
F. Large corporations are accountable to their stockholders, to governmental agencies, and to the public
G. In recent years, corporate profits have become a topic of considerable public interest
H. Accounting is the art of measuring, communicating, and interpreting financial activity