Accounting Accuracy and Financial Literacy - Personal Statement Example

The cash system is best for users since all information is disclosed in a single book. Corporation and partnership types of business will benefit from keeping accounting records. This gives a business platform for future reference.

            General accounting standards are the rule and concepts that govern accounting. Investors and speculators will make wrong choices if companies make annual adjustment entries. Closing entries are made at the completion of journals, which are transferred from temporary to permanent accounts while reverse entry is the vice versa. The accounting process involves journal entries, trial balances, financial statements, and closing books.

Financial Accuracy

            The main steps in the closing cycle are closing the revenue, expense, and income accounts. The accuracy involved in the above process can be improved by a double-checking system and by using a computerized system of accounting. Double-checking will increase the chances of sporting mistakes while computerized accounting enhances safety.

            E-activity helps users of financial information since they will be able to make correct and timely decisions. There will also be easy sharing of information. Obviously, there will be a decrease in delays caused by a manual system of operation.

            Closing entries in accounting accuracy entail zero balancings of temporary accounts by transferring all balances to permanent accounts. Reverse entry is the opposite of closing entry. The steps involved in the accounting process in financial accuracy are repeating the same process of accounting adjustment.