The role
of accounting has changed over the period of time”- Do you
agree?
Explain.
The role of accounting has changed over the period of time”- Do you agree?
Explain.
The role
of accounting is ever changing. While in earlier times, accounting
was merely concerned with recording the financial events, i.e.
record-keeping activity; however, now-a-days, accounting is done with
the rationale of not only maintaining records, but also
providing an information system that provides important and relevant
information to various accounting users. The need of this change is
brought over due to the ever-changing and dynamic business
environment, which is more competitive in nature now than it was in
earlier times. Further, there are various relevant activities like
decision making, forecasting, comparison, and evaluation that make
these changes in the role of accounting, inevitable.
The role of accounting is ever changing. While in earlier times, accounting was merely concerned with recording the financial events, i.e. record-keeping activity; however, now-a-days, accounting is done with the rationale of not only maintaining records, but also providing an information system that provides important and relevant information to various accounting users. The need of this change is brought over due to the ever-changing and dynamic business environment, which is more competitive in nature now than it was in earlier times. Further, there are various relevant activities like decision making, forecasting, comparison, and evaluation that make these changes in the role of accounting, inevitable.
