Reflection 4

In class we have only covered one chapter from the last test. I missed class during this lecture but this is what i got from the book. Accounting in a business is extremely important. The accounting aspect of a business can be used to determine how mistakes were made in the past and how things will look in the future. It will telll you if something makes financial sense. Audits in a company have to meet standards of the generally accepted accounting principles or GAAPS. Sarbanes Oxley Act was put into place to make sure accounting was done right. The accounting process involves 5 steps 1)documents analyzed, 2)transactions recorded, 3) appropriate ledger accounts, 4) accounting equation in balance, 5) finacial statements prepared for trail balance. Accounting is a major role in the success of a company and the success of its possible stock buyers. Accounting can be used to make judgements on business in the future.