Accounting -The Language of Accounting
- Topics:
- Decision Analysis
- Source:
- BusinessTown.com
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Overview: Many of the small-business managers view accounting in a negative way. It's overhead and really doesn't contribute to the bottom line. They have little grasp of the operation that generates the money to pay their salaries. The purpose of the accounting system is to communicate. It produces useful information (not raw data) that tells specific things about the company. This article has taken two examples that prove this: overdrawing TDO's bank account and MAG's eroding profit margins. Briefly, here is the way accounting system interacts at each stage of the business cycle. The final stage of the business cycle is conversion of the receivable into spendable cash.
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Format: HTML | Date: Jan 2003 | Pages: 1
