Tuesday, September 29th, 2009

How is mathematics and business studies related to accounting?

I need to write about how maths and business studies are related to accounting but i am struggling to find ideas.
Will pick best answer :).
Thanks.

I like to say that accounting is the language of business and it is spoken in numbers.

A loose definition of accounting is compiling data into financial reports understandable by the general business public.

A knowledge of how a business functions, what are its costs and expenses, its sources of income from sales and services, its assets and liabilities are all essential in developing these reports.

The math part is pretty self-evident. The reports that accountants prepare are mostly numers except for the footnotes. Tabulating these numbers require math skills.

The notes to the financial statements, which are very important, require the use of business knowledge gained through the accountant’s business studies.

These are a few ideas that I hope can help you formulate an essay. Good luck.

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2 Responses to “How is mathematics and business studies related to accounting?”

Isa Says:
September 29th, 2009 at 10:01 am

let me print out a basic idea.

there will be a time when a business needs to calculate funds and business tax, this is where the accountant comes into play. He fixes all the financial issues regarding the business (taxes, national insurance, money spent on stock)

usually a business will have a business accountant (a accountant who takes care of all the financial worries of that specific business & no other business)

you can also add in your essay that the salary of a accountant is extremely variable, you may have an accountant who works for microsoft (200,000 yearly probably) then a normal accountant working for a modest company (probably 35000 yearly)
References :

LongIslandRaceFan Says:
September 29th, 2009 at 10:32 am

I like to say that accounting is the language of business and it is spoken in numbers.

A loose definition of accounting is compiling data into financial reports understandable by the general business public.

A knowledge of how a business functions, what are its costs and expenses, its sources of income from sales and services, its assets and liabilities are all essential in developing these reports.

The math part is pretty self-evident. The reports that accountants prepare are mostly numers except for the footnotes. Tabulating these numbers require math skills.

The notes to the financial statements, which are very important, require the use of business knowledge gained through the accountant’s business studies.

These are a few ideas that I hope can help you formulate an essay. Good luck.
References :

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