What is Accounting System
What is Accounting System
An accounting system includes a complete organized set of manual or computerized or both accounting methods, policies, procedures and controls with an objective to record, classify and summarize all financial data in a significant way to establish analyses and interpretation of the data collected. This is done to present accurate and timely financial information for the purpose of managerial decision making. Journal entries are written chronologically by the bookkeeper to record the financial information on a day to day basis giving a list of debits and credits in a business. Ledgers are the way of classifying the information and trial balance is made summarize the financial data.
Accounting system involves the formal records and original source data. A particular accounting system is to be maintained depending on the regulatory requirements of each kind of company. For example, an insurance company will have different accounting procedures from a bank. Accounting system is the mechanism in a company that generates and interprets financial information. The accounting system comprises all the machines and people that are there involved in accounting information formulation.
In accounting system, all the information relating to accounting is communicated by financial statements and purpose of financial statements is –
1. To report about the financial position of any entity. For example; a company, a not for profit organization, a firm, etc.
2. To show the results of the performance of an entity over a particular period of time normally over an accounting period that is basically from 1st of April to 31st of May.
The main financial accounting statements:
Financial accounting statements are there to show results of the financial performance of a business over a particular period of time and at a particular period of time and to give a detailed analysis for the result. There are 3 financial statements in particular:
1) The profit and loss account or income statement over a period of time.
2) A balance sheet at the end of the financial year.
3) A cash flow statement for a particular period.
Coming from the ages to when man had barely invented the wheel, to this date when we have magnificent architectural wonders… It is astonishing that the ability to describe geometrical figures has reached precision of astronomical proportions. A major milestone in this process is the discovery of the Cartesian Coordinate System by the great french philosopher Rene Descartes.
The beauty of Rene Descartes’s work is that it allows us to describe geometric shapes as algebraic equations. When an entity becomes capable of being mathematically defined, it opens the floodgates for its total comprehensibility. It encourages others to work on the predefined framework and facilitates further discovery into the unknown realm. Rene Descartes pioneering work in geometry lead to conception of a new branch in mathematics called Coordinate Geometry.
Rene Descartes published works in mathematics and philosophy throughout his life. Early in his life Descartes experienced a series of three powerful dreams or visions which he later claimed as a profound influence upon his life.
rene descartes philosopher-Mathematical Accomplishments.
Apart from this revolutionary discovery there were numerous other domains in mathematics that Rene Descartes contributed to.
Descartes’ rule of signs is widely used to determine the number of positive and negative roots of a polynomial. He discovered an early form of the Law of Conservation of Momentum. Descartes even left an indelible mark in the field of optics: Using a simple geometric construction and the Law of Refraction, he showed that the Angular Radius of a Rainbow is 42 degrees. Rene’s discoveries provided fundamental for acceptance of calculus. He applied infinitesimal calculus to the tangent line problem, and this led to the evolution of the branch of modern mathematics. He invented the notation of writing superscripts to denote powers/exponents which is taken as a standard practice today.
rene descartes philosopher-Memorabilia
Even today the world celebrates his accomplishments:
As a token of honour the Cartesian geometry is named after him. The law of Refraction is also referred to as the Descartes’ law. A small main belt asteroid is named after him as the 3587 Descates. A Cartesian diver/Cartesian devil is an experiment, named for Rene descartes, which demonstrates the principle of buoyancy (Archimidies’ principle) and the Ideal gas law. The direct product of two sets in Set Theory is called as the Cartesian Product.
Learn more on about Statistics Positive Correlation and its Examples. Between, if you have problem on these topics Simplify Exponents, please browse expert math related websites for more help. Please share your comments.
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