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A good accounting practice is vital to a company’s success Research Proposal

Category: Finance & Accounting Pages: 10 Type: Research Proposal Level: Master
ecessary to analyse the general principles and possibilities of a good accounting practice and the way how it is applied to a small concern towards maintaining its existence.
Accounting principles and practices
In business, the entrepreneur is at stake because he has invested money to run the business. In big companies with large investment, the public may also put money in the capacity of share holders. This demands that the public has got a right to know about the revenue, expenditure and profit of the company. And the entrepreneur or the management of the company has got the responsibility to give the public the details of the performance of the company which are reflection of the financial accounts. Since the accounting of the transactions will represent the performance of the company, the accounting should be perfect and according to the established norms and if it fails to do so, the company's image will be tarnished and it may become a failure. Therefore, a good accounting practice has to be maintained by every company whether it is big or small.
Concepts and Theory
Generally accepted Concepts in Accounting Practice
Language is the lifeline of communication, whereas; financial statement is the languages of business. Accounting practice that is pursued shall not only be of required standard but also be conceptual and systematic. It should be based on globally approved order and design with all required fields well explained.
The first and foremost principle of accounting is ethics. It is the basis of culture and civilization. The necessity to adherence to ethics is essential in the context of present day controversies and scandals cloud around corporate companies, and even small companies. Reports and cover stories are seen frequently about