Ethics Acounting and Finance Essay Example | Topics and Well Written Essays - 1250 words

Ethics Acounting and Finance - Essay Example As the report declares in concrete terms accounting measures profit and resources, telling how much is the assets, liabilities and capital of a business organization, which are a combination of the interest of the owners and creditors. An income statement tells the results of operation of a business for a given period say a month, or a year, while a balance sheet show the financial condition of a business organization as of a given time say year 1995 or 2000. This paper stresses that from their definitions, we can easily discern that there is a difference between the two. A finance manager who heads a department where accounting is a division would exert an influence to have accounting division help finance department in the attainment of the objective of the latter that is the maximization of stockholders wealth. What do you think is the result? Finance will have a biased report because, the Finance manager will just say to the accounting head, â€Å"you must practice creative accounting for us to look good to our stockholders.† The head of the accounting office will respond in submission to the head of the finance department, his boss. In an organization ideals, are ideals but human nature would rear its ugly head if one function could abuse another functional area. Accounting is better combined with a management information system because they both serve the same purpose that is to provide accurate and reliable information for d ecision-making and in addition, there must be ethics as to practice of the two functional areas.