Reflection Paper on Precore Paper

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Reflection of the Precore Paper
Accounting is a major component of business operations worldwide. It assists businesses to make good decisions These are but some of the aspects shared in-depth in the Precore Paper and reading by Derrick Hayes. He acknowledges the significance of accounting to business entities. He cautions against identifying accounting as an end and rather, recognizes it as a means to an end. Based on these statements, accounting is fondly known as the language of business and is used to communicate diverse information to various stakeholders. According to Hayes, “The final product of accounting information is the decision that is enhanced by the use of that information, whether the decision is made by owners, management, creditors, governmental regulatory bodies, labor unions, or the many other groups that have an interest in the financial performance of an enterprise” (4). Furthermore, the article shares that it is extremely important for business owners to understand about different accounting measurements such as costs, prices, volumes, and sales among others. This is because they are linked to key accounting elements of assets, liabilities, equity, expenses and profits/losses. Hayes also that accounting information is also material to government agencies and nonprofit organizations (Hayes 6). Government agencies are particularly concerned with the taxation part of accounting as they sort to collect as much revenue as possible to improve the infrastructures in their respective regions.
According to the article, to ensure fair competition and to protect consumers, generally accepted accounting principles (GAAP) were developed by the Financial Accounting Standards Board (FASB). These authoritative standards must be adhered to by all accountants especially in the US during the development of financial statements. From Hayes’s perspective, these GAAP’s were established follow different c...