Accounting Reports

Abstract

The growing complexity of modern business, and the effects of taxation statutes have combined to require from people in business more knowledge of accounting. The student of economics who is concerned with the study of man in an environment of scarce resources and competing ends must also be aware that the records of businesses are, in general, kept in accounting form. In this thesis are considered some of the factors affecting accounting reports, and also some of the purposes for which the techniques of accounting reports can be used and developed. In private enterprise economic systems the motivation of the firm is profit. The entrepreneur, in deciding how to apply his efforts, considers which type of enterprise and in which market he can best maximise his monetary return. The success of his endeavour will be measured by the means of accounting reports. Their nature and complexity will, in part, depend on the size of his organisation. The entrepreneur's net reward for undertaking the risk and uncertainty of organising a firm will probably not be capable of precise measurement but will be assessed under the various accounting conventions relating to the preparation of accounting reports.