INTRODUCTION TO ACCOUNTING Speech or Presentation

INTRODUCTION TO ACCOUNTING - Speech or manifestation ExampleFor example, the cost of sales amount represents the total amount of cost that was incurred or during the same accounting system period as when the sales output was made. The purpose is to ensure that the gross good and the net profit are generated from deducting the same period costs and expenses to the same period revenues (Dyson, 2010).Relevance fancy states that all info gathered and presented must be relevant to the decision making process (Noreen, 2008). If the manager plans to set up a branch in Scotland, the manager needs relevant data from Scotland, not from China (Dyson, 2010). Additionally, the newfangled materials information is relevant to the managements decision as to replacing the current raw materials with high quality raw materials (Weetman, 2006). The move is set to increase the customers demand for the companys products and services.Reliability concept states that some misstatements of the company s monetary report accounts may reduce the readers reliability on the fiscal reports (Dyson, 2010). For a report to be reliable or trustworthy, companies are required to have an independent or external auditor submit a report as the trueness of the financial reports presented to interested parties (Verzuh, 2005).On the other hand, the amount paid is recorded as a debit to taxes or licenses or blood permits. The company will also record the credit to cash for the year 2012. Consequently, the amount paid increases the expenses shown in the income statement. Similarly, the balance sheet will show a deduction amounting to 4,800 and another 4,800 for the entire 2012 annual accounting period ending December 31 2007 (Drury, 2006).The company should record a debit to accounts receivable. The account prenomen represents the amount that the customer promises to pay at an agreed future time. Similarly, the company will record a sales amount in the sales or revenue section of the clients fina ncial statements (Dyson,