Encyclopaedia Of Business And Accounting (eBook, ePUB)
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The accounts of a corporation may be called the history of its financial transactions. A transaction would seem to be capable of but one interpretation, and we should, therefore, be led to expect that a statement prepared from the books would be an exact reflection of the facts of its financial transactions. The business of modern corporate organization is so complex and its transactions are so numerous and so varied, that the facts are sometimes difficult to as certain and frequently are of such a character that they fall under the category of opinions rather than certainties. Since the opera...
The accounts of a corporation may be called the history of its financial transactions. A transaction would seem to be capable of but one interpretation, and we should, therefore, be led to expect that a statement prepared from the books would be an exact reflection of the facts of its financial transactions. The business of modern corporate organization is so complex and its transactions are so numerous and so varied, that the facts are sometimes difficult to as certain and frequently are of such a character that they fall under the category of opinions rather than certainties. Since the operations of corporate are continuous, business accounts need reorganization on the basis of sound accounting principles, so that financial statement will reflect an honest position and on the basis of which the auditor will provide and honest opinion on company's financial position and results of operations.
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