Acc205 Final Paper - 1272 Words

Final Paper Matthew Duncan ACC205: Principles of Accounting 1 LaKeitha Givens June 13, 2011 Final Paper What makes a large organization like Wal-Mart financially successful? One could say it is the result of outstanding personnel or perhaps a strong determination to succeed. These factors certainly contribute. However the key to financial success in organizations lies in good accounting. Since early civilization began, accounting has been an important part of our financial transactions. In today’s world our use of modern accounting systems and accurate financial statements are critical components that make modern organizations successful. To facilitate understanding of this point one must understand how†¦show more content†¦As organizations utilize software and the internet together to make transactions and complete accounting functions, the threat of cybercrime comes into play. â€Å"Cyber crime against private business is growing, and consuming a larger share of Federal Bureau of Investigation resources than ever before†¦Ã¢â‚¬  (Kelly, M., amp; 42 staff, 2011) Modern organizations that utilize technology must now use their resources to protect themselves from malicious cybercrime activities. A â€Å"hacker† could illegally intrude into an organizations information network and use accounting software to mine information and steal assets at a relatively low risk of being caught. With new threats introduced in the accounting environment, modern organizations now must work hard to safeguard information that was not at such a risk prior to new technology. Outside threats are a real danger to accounting functions in modern organizations, but other dangers to success lie from within. â€Å"Accounting is the information system that measures business activity, processes the data into reports, and communicates the results to decision makers.† (Horngren amp; Harrison, 2007, p. 4) Decision makers within an organization need accurate accounting information to manage organizational activities and turn these efforts into success. Internal accounting accuracy plays just as important of a role outside of internalShow MoreRelatedAshford University Acc205 Final Paper768 Words   |  4 Pagesrecorded as such in accordance with the matching principle. One example of a contingent liability is a pending lawsuit. If the lawsuit is lost then the company will need to pay, therefore the money must be thought of as already spent until the lawsuit is final. Another example of a contingent liability occurs when one company cosigns on a note for another. If the second company defaults on the loan then the first company will have to pay. Therefore the money must be recorded as a liability until the note