CHAPTER 1-CHAPTER2 DOCX

Title	CHAPTER 1-CHAPTER2
Author	Jackie Yee
Pages	34
File Size	49.7 KB
File Type	DOCX
Total Downloads	405
Total Views	1,039

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CHAPTER 1 THE PROBLEM AND ITS BACKGROUND Introduction Accounting systems are methods, procedures, and standards followed in accumulating, classifying, recording, and reporting business events and transactions. And as a competitive advantage, the business should have a good accounting system. A good accounting system possesses simplicity-in terms of usage, facileness or easiness-in terms of learning the system, accuracy-in terms of recording transactions and flexibility or adaptability of the system to change. The system should also provide timely information so that it can be available to users early enough to make decisions; it must be within the budget to implement and maintain the system; safeguard the business from the possibilities of fraud and errors: avoids redundancy in processes; and take into account the nature, timing and extent of the business as well as the accounting capabilities of the user (Patsula, 2001). Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders. These includes the generation of recurring income which is the most important part of operations, increasing value of the business and securing the income and the value of the business. All businesses must be concerned with its accounting system in order to have a clear view of business condition and its performance. It must also 1...