Accounting Theory And History Accounting Essay

Accounting Theory And History Accounting Essay Accounting has evolved since it was first developed and has continued to evolve. The aim of this essay is to explore and discuss why accounting, both financial and management has changed over the last millennium. In order to achieve this aim an in-depth approach will be taken into the origins of accounting, its purpose and need. This will mean examining history papers which are evidence-based but are intertwined with value judgement. Many alternative theoretical and practical explanations are offered in literature for the development of accounting over time. These course literatures will be evaluated and there theories will subsequently be accepted or rejected. In order to explore the question and because the definitions provided by accounting bodies are themselves are subject to change, it is crucial to first define accounting and its purpose. The purpose of accounting is to provide information based on relevant data that aids users in making economic decisions. Financial accountin g is designed mainly to produce financial reports which provide information regarding the firm’s performance to external users such as Tax authorities, Investors, Customers and Creditors. Financial Accounting is highly regulated in order to ensure they have certain characteristics. These characteristics enhance the usefulness of the financial reports to users. These characteristics are relevance, comparability, timeliness, fairness and objectivity. Management accounting is used to prepare accounts and reports that provide accurate and up to date information that allows management to make decisions. Accounting developed as people needed a method of recording their assets and property. If property was recorded and accounted for, it would be easy to prove legal ownership. Accountancy has been around for thousands of years. Professor L. Plunkett of the College of Charleston calls accounting the â€Å"oldest profession† In this millennium there have been countless changes a nd developments in accounting. From more primitive methods of simple accounting for property and assets, in order to record for evidence of legal ownership to a complex regulated form. Management Accounting â€Å"British Entrepreneurs and Pre-Industrial Revolution Evidence of Cost Management† a paper by Richard K. Fleischman and Lee D. Parker examines the use and developments of cost accounting in 1760 to 1850. The four main areas looked at in cost management will be: cost control techniques, accounting for overhead, costing for routine and special decision making, and standard costing. These firms used cost data to control raw material input materials. The iron firms broke down costs using raw material controls, whilst taking into account the differential costs of mining and smelting. Textile firms were concerned about the profitable raw mixtures and the cost of raw materials input. Marshall textile firm employ the practise of using performance cards, which is an effective m ethod and is still used by firms today. Performance cards are used daily to monitor and control expenses.. These management accounting practises benefited the business greatly. It allowed marshal to be cost effective and efficient by minimising costs. Gregs was another textile firm which kept wage and expense books to calculate control costs. This helps to identify trends, weaknesses and areas for improvement. For example they experienced losses in 1829 and where able to identify and attribute these to heightened production costs and outdated machinery.

SHOULD ETHANOL BE REQUIRED IN GASOLINE Research Paper - 1

SHOULD ETHANOL BE REQUIRED IN GASOLINE - Research Paper Example Since last two three decades scientists, however, have been expressing their concerns over the over use of fossil fuels. Since coal, gas or natural energies are non-renewable and over the year’s excessive use of these fuels have caused huge depletion of these, this golden age of fossil fuel power can not run for long. Time has come to seriously think upon alternative sources of energy for the future as possession of huge amount of energy is a requisite for any kind of human civilization. Looking at the depletion rate of fossil fuels it has become quite evident that future will embrace renewable sources of energies to keep the high pace of development of human civilization. Being environment friendly these energy sources will also be able to provide mankind with a more pleasant and safe environment to live in. Here comes the importance of ethanol as it is a renewable fuel. Ethanol can be produced from various kinds of agricultural feeds like sugarcane, agricultural residues, an d wastes of forestry wood. However, sometimes, it is also produced chemically from chemical components like ethane or ethylene. (Onursal and Gautam, 1997; Srinivasan and Saravanan, 2010) The molecular structure of ethanol comprises of C, H and O and it is chemically known as C2 H5 OH. Ethane has very well defined chemical as well as physical properties. Ethanol has the capacity to be used as fuel for transportation purposes in its original form. It is also quite able to get blended easily fossil fuels like gasoline. Today, many cars are no longer using pure gasoline as the source of energy, but they are using a blend of ethanol and gasoline. (Onursal and Gautam, 1997) Currently, the interest in using ethanol as an alternative fuel option has increased significantly. As a result production of ethanol is also taking at a faster pace than before. At present, most of the ethanol is being produced from renewable stocks for minimizing CO2 emissions in the air. CO2 is greenhouse gas that i s responsible for global warming. The addition of ethanol to gasoline helps in the increase of the octane number in the blended fuel form and produces some changes in the distillation temperature. (Onursal and Gautam, 1997) Although addition of ethanol to gasoline is being increasingly considered to be an alternative of pure gasoline, there are some arguments against having ethanol in gasoline. In the presence of widespread debate regarding the use of ethanol in gasoline, the purpose of this study is to find out whether it should be right to use ethanol in gasoline. Thus the thesis statement of this paper can be presented as follows: Ethanol should be used as an alternative fuel option and it should be there in gasoline in appropriate proportion. Here some efforts will be made to check the cases for and against having ethanol in gasoline. On the basis of the findings, a conclusion will be made with respect to the thesis statement of this paper. (Onursal and Gautam, 1997) Arguments f or having ethanol in gasoline In near future fossil fuels will no longer rule the energy sector of the world given the alarmingly fast rate of their depletion. The golden age of fossil fuels will come to an end very soon and different sorts of other power sources, particularly renewable sources, will replace fossil fuels and also play an important role in making the environment more clear. Alcohol like ethanol has some advantages in their use as an energy source over