Describe the nature of a business, the role of accounting, and ethics in business, & Describe and...

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Accounting

Describe the nature of a business, the role of accounting, andethics in business, & Describe and illustrate theuse of horizontal analysis in evaluating a company’s performanceand financial condition.

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Nature ofBusinessIt refers to the industry specific to which business is carriedout However for few nature of business refers to the constitutionof the business It is a phrase that has contextual sense whenreferring to a particular industry or business Depending on theenterprise commercial transactions will follow the nature of thatbusiness Generally it means that commercial selfinterest and arational outlook will prevail However it can mean very specificthings regarding certain businesses which are cyclical or seasonalIt would be in the nature of tourist businesses to have on and offseasons with corresponding prices It is in the nature ofagricultural businesses to have more cash flow after harvests Itis in the nature of the stock market to reward profitablebusinesses and punish unprofitable businessesRole ofAccounting in Businessa Measurement Accounting measures past performance of thebusiness entity and depicts its current financial positionb Forecasting Accounting helps in forecasting futureperformance and financial position of the enterprise using pastdatac Decisionmaking Accounting provides relevant information tothe users of accounts to aid rational decisionmakingd Comparison Evaluation See Answer

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