The purpose and scope of accounting in complex operation environment

 Hi, for one who are new here, my name is Duong and I'm learning for accounting principles in this semester hope you enjoy my sharing.

 First of all, we need to understand correctly: The meaning of purpose and scope of accounting. 

1. Purpose of accounting

The purpose of accounting is easy to understand in form of way to accumulate and report information, which is introduce in financial about the performance, financial position, cash flow of a business. Then, it will be used to make a decision in how to manage the organization, or invest, lend money to it. 

2.Scope of accounting

The scope of accounting is including all the transactions and activities in finance of a company. It consists of recording, classifying, and summarizing the finance information to adapt the accurate reports. In short, it helps to decide one plan in the future.   

Major functions of scope accounting are:

1) To ascertain current profitability.

2) To plan for future growth.

3)To forecast the income statement.

4)To prepare budgets for the future.

We can easily understand that purpose and scope work of accounting in complex organizational environment is the root of every performance. 

With that information companies should focus and be professional in both works of accounting to reach successful

References: 

            Bragg, S. (2023) The purpose of accounting —  AccountingTools. https://www.accountingtools.com/articles/what-is-the-purpose-of-accounting.html.

CA Foundation: Accountancy- Scope of Accounting (2022). https://unacademy.com/content/ca-foundation/study-material/accountancy/scope-of-accounting/.