In today’s global marketplace, business is conducted on every continent, in different currencies and in many languages. Even so, it is often said that accounting is the language of business.
1. When there are so many other options, why do you suppose accounting would be considered the language of business?
2. If accounting standards differ by country – and some do – what are your thoughts about how the phrase could still be true?
3. Thinking about your experience as a consumer, share an example of how accounting could be considered a language of business.
Respond to these as well:
1. Accounting is the process of identifying, recording, and communicating the economic events of an organization to interested users of the information (The Role of Accounting in Business, 2019). Accounting is considered the language of business because it helps the people inside the business as well as the people outside the business to understand and communicate what is going on financially with the company. Business people focus heavily on a companies financial situation because it helps them to use this information to make decisions like investments for shareholders, what changes are needed for the companies growth for owners and also the longevity of the company for an employee.
Accounting standards will differ in different countries due to the differences in the markets and the different cultures. The accounting languages can be universal, meaning regardless of the countries culture, or speaking languages, all business have to know the language of accounting to provide or express the companies financial situation to its consumers, investors, and owners or creditors.
2.As an external user, an example of accounting language of business is when I look at my 401k account statement that is provided on a quarterly basis it shows the recording of all the transactions that has happened on my account for a certain period or time frame. I’m able to see how each company that I have investments in are doing. This statement will allow me to make a decision on whether or not I want to keep my stock in that company or sell it.
Good morning Professor Bloom and fellow classmates,
I suppose accounting would be considered the language of business because it gives assistance to both internal and external to keep up with what is going on in a business. Communication is global to people, so is accounting in business. Nonetheless, on the planet in the world, a business is located financial facts is interpreted in the same way. Professional use accounting information to asses how business is doing. Balance sheets, audits, and expense reports allow accountants to follow money and transactions. Without the basic knowledge of accounting principles, it is impossible to make smart decisions about investing.
My thoughts on how the phrase could be true are the first priority of the Financial Accounting Standard Board (FASB) is to improve financial reporting for the benefits of investors and other users of financial information in the capital market. Providing high-quality standards which are Generally Accepted Accounting Principles it means standards that provide users or financial explanation with facts that are clear, useful, and appropriate to their needs which consider the expected of data justify the cost of providing and using it.
An example of how accounting could be considered a language of business as a consumer to analysis and interpretation of bookkeeping records. It includes not only the maintenance of accounting records but also the preparation of financial and economic information which involves the measurement of the transaction