accountancy

Accounting science can be defined as the science that is concerned with the systematic process in which information about economic events in organizations is studied and analyzed. This information is then used in a systematic manner by the management of these organizations. As well as the procedures that can be taken to bring this development to the relevant departments, as well as accounting science in determining the tax values due to the organization, and there are many branches of accounting, notably financial accounting, and in this article will be addressed information about the accountant Finance.

Definition of financial accounting

Financial accounting can be defined as the process of recording, classifying and classifying business activities in organizations in order to prepare a specific set of financial statements that represent summaries of what has been done within a specified period of time, Accounting Principles And financial accounting standards, through which the financial information contained in all financial statements of the organizations is understood, measurable and comparable because of the uniformity of the presentation of the data and the similarity of the items it contains. The data in the financial statements contribute to the financial position of external users, Are limited to those in the Organization who have extensive and actual data on the financial position of the Organization, actual documents and invoices under which sales and purchases were made and Of the financial operations of the enterprise.^[2]

The importance of financial accounting

The importance of financial accounting is highlighted mainly by controlling the business of the organization financially and recording all the returns contained in it, in addition to the presence of many parties benefiting from the data presented in the financial statements prepared by the financial accountant, as financial accounting is the cornerstone on which the preparation of lists To be utilized by these Parties as follows:

Investors: Through the information contained in the financial statements, the investment agencies evaluate the general situation of the organization in order to increase investment or reservation and wait for the appropriate time.

Creditors: Creditors benefit from the data presented in the financial statements in order to determine the degree of financial risk arising from the lending operations, where the ability of the organization to meet its obligations is evidenced by the availability of liquidity to enable it to do so.

Suppliers: Suppliers wish to identify the Organization's capacity to increase or decrease the demand for goods supplied to the relevant organization, as well as to determine the approximate volume of future demand in order to secure these quantities of supply units.

customers: Customers want to know the overall situation of the organization as this is reflected in purchases, as customers do not want to make purchases from an unsecured organization, as well as determine the organization's continued presence in the market to form long-term relationships with them Financial and sustainability in the market.

Trade unions: Unions benefit from the data provided in the financial statements in order to estimate the rate of remuneration of the staff members of these unions and to improve their situation in return for their efforts within the Organization.

Important questions

State the accounting cycle

The accounting cycle in companies consists of the following:
1. Document
2- Preparation of enrollment
3 - preparation of a daily assistance according to the method used to record books such as the American method and the French method
4. Preparation of a central registration in the daily journal
5 - Preparation of a general professor
6- Prepare a balance of audit
Prepare final accounts and balance sheet

Mention the ways of destruction?

Depreciation methods in accordance with Egyptian accounting standards are 3 methods
1- Fixed installment method
2- Decreasing installment method
3- Production units method
However, there are other methods such as the method of re-estimation as in the case of timber in the construction companies and dishes in the case of hotels

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