Business Ethics and Corporate Governance, Second Edition

INTRODUCTION

Corporate accounting and finance, which refers to the accounting practices and reporting through financial statements of public limited companies, is broadly categorized as:

1. financial accounting; and
2. financial management.

Financial accounting is the language of business. It is meant to measure, translate and sum up the impact of all business transactions into financial terms, in the form of statements. Such statements take the forms of balance sheet, income statement and cash flow statement and facilitate an organization to analyse and evaluate periodically whether its business is profitable and worth pursuing. Based on this financial input alone, the enterprise formulates its business strategies for enhancing its revenue, cost ...