The role of accounting has changed over the period of time. Explain
Answers
Answer:
The role of accounting is ever changing. While in earlier times, accounting was merely concerned with recording the financial events, i.e. record-keeping activity; however, now-a-days, accounting is done with the rationale of not only maintaining records, but also providing an information system that provides important and relevant information to various accounting users. The need of this change is brought over due to the ever-changing and dynamic business environment, which is more competitive in nature now than it was in earlier times. Further, there are various relevant activities like decision making, forecasting, comparison, and evaluation that make these changes in the role of accounting, inevitable.
Ans. Firstly the change of role of accounting means , various new and innovative ideas and methods has been developed over all the world,over the past few years.as we know in previous years our technology was backward as compared to now,therefore in those days we used to had no special equipment for accounting,for example yet now we are able to perform various accounting works with the help of computerized accounting software,which was not possible in some previous year .Yet now we can able to do accounting without consuming much time, without heay paper works,we have no need to remember a lots of transaction,we can do arithmetic and logical operations with just few minutes.
Therefore we can say that over the past few years the accounting has been changed.