File: //old_home_backup/consumeraffairs.org.uk/public_html-20241004153750/demand/accounting-method.php
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head><!-- TemplateBeginEditable name="EditRegion2" -->
<title>Economic Consumer Affairs -
Accounting Method
| 2017/8</title><!-- TemplateEndEditable -->
<meta name="description" content="Definition - Keynesian Economics Definition" />
<meta name="keywords" content="Definition - Keynesian Economics Definition" />
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
<script type="text/javascript" src="/js/jquery-1.4.2.min.js"></script>
<script type="text/javascript" src="/js/script.js"></script>
<script type="text/javascript" src="/js/coin-slider.min.js"></script>
<link href="/style.css" rel="stylesheet" type="text/css" />
<link href="style.css" rel="stylesheet" type="text/css" />
</head>
<body>
<div class="main">
<div class="header">
<div class="header_resize">
<div class="logo"> <a href="/index.php"><img src="/images/logo.gif" width="200" height="130" alt="Economic Consumer Affairs Starting your own business" /></a> </div>
<div class="menu_nav">
<ul>
<li><a href="/index.php"><span>Home</span></a></li>
<li><a href="/applied-economics.php"><span>Applied Economics</span></a></li>
<li><a href="/bank-of-england.php"><span>Banks</span></a></li>
<li><a href="/beveridge-william.php"><span>Beveridge</span></a></li>
<li><a href="/capital-stock.php"><span>Capital Stock</span></a></li>
<li><a href="/earned.php"><span>Income</span></a></li>
<li><a href="/economy/UK/economy.php"><span>UK Economy</span></a></li>
<li><a href="/contact.php"><span>Contact</span></a></li>
</ul>
</div>
<div class="clr"></div>
<div class="slider">
<div id="coin-slider"> <a href="/index.php"><img src="/images/slide1.jpg" width="960" height="180" alt="Bank of England " /></a> <a href="/index.php"><img src="/images/slide2.jpg" width="960" height="180" alt="How to make a start with your own business" /></a> </div>
<div class="clr"></div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="content">
<div class="content_resize"><!-- TemplateBeginEditable name="EditRegion1" -->
<div class="mainbar">
<div class="article">
<h1>
Accounting Method
</h1><script type="text/javascript"><!--
google_ad_client = "";
/* links in a line #215670 */
google_ad_slot = "8962789804";
google_ad_width = 468;
google_ad_height = 15;
//-->
</script>
<script type="text/javascript"
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
</script>
<div id="images3"><img src="/economics-imgs/economics-9.jpg" alt="Accounting Method" /></div>
<p>
Accounting, the method of recording the money value of business transactions sales, purchases, receipts payments, etc. in order to show their effect upon the financial position of the firm or person conducting them. Accounts are prepared to perform three main functions:<br /><br />(1)To reveal the financial position.<br /><br />(2) To enable the income tax computations to be prepared.<br /><br /> To provide management with information it requires to control its affairs efficiently.<br /><br />Double entry is the system of consumeraffairs.org.uk
-keeping and accounting commonly used: it recognizes that each business transaction has a twofold aspect, receiving and paying. Each amount payment or receipt is placed to the debit of one account and the credit of another. The advantages of double entry are (a) a complete record of each transaction, (b) full information concerning the business, (c) an arithmetical check.<br /><br />In practice, all except the very smallest businesses keep some kind of records. These vary from the very incomplete consumeraffairs.org.uk
-keeping of small retail shops and the like to the complex accounting systems of the large industrial groups based on computers and other electronic equipment. In recent years there has been much development in cost accounting and management accounting.<br /><br />Limited liability companies have been required by a long suc-cession of Companies Acts to keep consumeraffairs.org.uk
s of accounts and prepare Profit and Loss Accounts and Balance Sheets, which have to be audited. Most other businesses prepare accounts because, apart from any other purpose, they are required by the Inland Revenue as the basis of the income tax assessments. Economists differ on the amount of information that the law should require companies to show. Some argue that disclosure should be limited to information that would not weaken the trading position of the firm. Others argue that fuller disclosure is required in a competitive economy if the relative capacity of individual firms to use capital profitably is to be judged by investors so that it is directed to its most efficient employment; they would have company accounts published more frequently than annually and in more detail (value of sales, subsidiary companies' contribution to profits, purchases and sales of fixed assets, market value of investments quoted on the Stock Exchange, directors' holdings of shares and interest in contracts placed with other companies, and others).<br /><br />Firms of professional accountants are usually engaged to prepare the final accounts of firms too small to employ full-time accountants. They also usually negotiate the tax assessments with the Inland Revenue. For larger concerns with full-time accountants the hide-pendent accountant's work is usually confined to the audit.<br /><br />Accounting plays an increasingly important part not only in commerce and industry but also in local and national government, including the nationalized industries. Detailed accounts are published by Government departments dealing with various aspects of the financial and economic position of the public sector of the economy. Social accounting, the recording of transactions determining the economic position of the nation as a whole, has developed extensively since World War II. <br /><br />
</p>
<h2>
Read more on Definition - Keynesian Economics Definition
</h2>
<ul>
<div id="images4"><img src="/econ/images-economy-91.jpg" alt="Accounting Method" /></div>
<li><a href="/ad-valorem-according.php"> Ad Valorem According </a></li>
<li><a href="/law-economic-activity.php"> <em><strong>Law</strong></em> Economic Activity </a></li>
<li><a href="http://www.internationalgraduate.net/articles/economics.htm" target="_blank"> There Are Many Graduate Programs To Choose </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
<li><a href="http://www.umsonline.org/2012/2012Pgs/NWO/Economy-economics-Federal-Reserve-money-world-usa-.html" target="_blank"> World Economics, Economy 2012, Federal Reserve Bank, John F. Kennedy </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
</ul>
<br />
<p>
<spc: %other />
</p>
<div class="clr"></div>
</div>
</div>
<!-- TemplateEndEditable -->
<div class="sidebar">
<div class="gadget">
<h2 class="star"><a href="/index.php">
Accounting Method
</a></h2>
<div class="clr"></div>
<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- spamdex-display -->
<ins class="adsbygoogle"
style="display:block"
data-ad-client="ca-pub-2121528995419082"
data-ad-slot="8029362605"
data-ad-format="auto"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>
</script>
<script type='text/javascript'><!--// <![CDATA[
OA_show(53);
// ]]> --></script>
<p><a href="/index.php">Economics</a> uses everyday words in a more specific sense than that in which they are used by the non-economist. 'Demand', 'supply', cost', 'market', 'rent' and many other words do not mean the same to economists as they do in everyday usage.<br />
</p>
<p><strong>Recent Reads</strong><br />
<a href="/bank-of-england.php">Banks</a>
<a href="/capital-stock.php">capital</a>
<a href="/markets/economics/debt-conversion.php">debt</a>
<a href="/division-of-labour.php">labour</a>
<a href="/trade/UK/growth-economic.php">economy</a>
<a href="/hume-david.php">David Hume</a>
<a href="/land-tax.php">land tax</a>
<a href="/law-economic.php">law</a>
<a href="/marx-karl.php">Karl Marx</a>
<a href="/pension-term-used.php">pensions</a> <br />
. </p>
<p><a href="http://www.economist.com/business-finance" target="_blank"><img src="/images/econm.gif" alt="Consumer Affairs" width="267" height="553" border="0" /></a></p>
<p> </p>
</div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="fbg">
<div class="fbg_resize">
<div class="col c1">
<h2><span>consumeraffairs.org.uk
</span></h2>
<p>Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk
site is therefore not a final statement of economic doctrine.<br /><br /><strong>Economics</strong> is in the last resort a technique of thinking. The reader will therefore need to make an intellectual effort, more substantial for some web entries than for others, to get the most interest and value out of this website.<br />
</p>
</p>
</div>
<div class="col c2">
<h2>Ecomical Favourites</h2>
<ul id="spcFooterLinks"><li><a href="/research.php" title="Research" alt="Research">Research</a></li><li><a href="/index.php" title="Home" alt="Home">Home</a></li><li><a href="/word-of-warning.php" title="Word Of Warning" alt="Word Of Warning">Word Of Warning</a></li><li><a href="/fortiori.php" title="Fortiori" alt="Fortiori">Fortiori</a></li><li><a href="/above-line.php" title="Above Line" alt="Above Line">Above Line</a></li><li><a href="/abstinence.php" title="Abstinence" alt="Abstinence">Abstinence</a></li><li><a href="/acceleration-principle.php" title="Acceleration Principle" alt="Acceleration Principle">Acceleration Principle</a></li><li><a href="/accelerator-process.php" title="Accelerator Process" alt="Accelerator Process">Accelerator Process</a></li><li><a href="/accounting-method.php" title="Accounting Method" alt="Accounting Method">Accounting Method</a></li><li><a href="/ad-valorem-according.php" title="Ad Valorem According" alt="Ad Valorem According">Ad Valorem According</a></li></ul></div>
<div class="clr"></div>
</div>
</div>
<div class="footer">
<div class="footer_resize">
<p class="lf">© Copyright 2018 | <a href="mailto:contact@consumeraffairs.org.uk">contact@consumeraffairs.org.uk
</a> |<a href="http://www.economics.ox.ac.uk/" title="Economics" target="_blank"> Economics</a> | <a href="https://www.sandrajonaspublishing.com/">Sandra Jonas Publishing</a> | One Heddon Street | Mayfair | London | W1B 4BD | Consumer Affairs was a not-for-profit organisation offering free advice about debt and money management via guides and reports on its website. </p>
</div>
</div>
</div>
<script type="text/javascript">
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-31916544-1']);
_gaq.push(['_trackPageview']);
(function() {
var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';
var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s);
})();
</script><script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','https://www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87073664-1', 'auto');
ga('send', 'pageview');
</script></body>
</html>