Finance and Accounting Business Organization

Question: Discuss about the Finance and Accounting for Business Organization. Answer: Personal Development Plan Finance for managers is one of the most important subjects for business organization. Stakeholders should have detailed information on the functioning of business enterprise. There are two types of stakeholders like internal stakeholders as well as external stakeholders. Internal stakeholders are those stakeholders who are present inside the business organization like managers as well as employees and board members (Williams 2012). External stakeholders are not directly involved in business activities like shareholders as well as customers and suppliers. Stakeholders should have detailed knowledge as well as information on accounting and finance attributes as they invest money. These shareholders use investment as well as assess management through financial statements. Investors as well as analysts develop numerous analytical tools and concepts in comparing strengths and weakness of business organization. Liquidity ratio is one of the important ratios especially for creditors. It measures firms ability in meeting up short-term obligations. Liquidity levels vary largely from one industry to another. Profitability ratio uses for the purpose of investment analysis. It measures the ability of the firm in earning adequate return at the same time (Shim, Siegel and Shim 2012). Financial Accounting Standard Board aims at improving in financial reporting. FASB provides benefits to investors for rendering financial information in US capital markets. It aims at striving for setting best quality known as Generally Accepted Accounting Principles. This particular standard provides users with financial statements with information (Needles and Powers 2012). It expects benefits for financial information in justification of costs as well as using it as far as possible. Every business organization has economic responsibility. It requires earning return for its stockholders in confinement with law. Corporate Social Responsibility of an organization expands understandings of responsibilities. This includes stakeholders like employees, local communities as well as suppliers and customers at the same time (Davies and Crawford 2012). Ethics is considered as crucial component in individual as well as group behaviours in accordance with organization responsibilities. It addresses ethical responsibilities of managers as well as corporations. Reference List Davies, T. and Crawford, I. (2012).Financial accounting. Harlow, England: Pearson. Needles, B. and Powers, M. (2012).Financial accounting. Mason, OH: South-Western Cengage Learning. Shim, J., Siegel, J. and Shim, J. (2012).Financial accounting. New York: McGraw-Hill. Williams, J. (2012).Financial accounting. New York: McGraw-Hill/Irwin.