ACCOUNTING FOR ENTERPRISE GROWTH.
The article focuses on accounting for growth of business enterprise. Management must have adequate information as to the progress, or lack of progress, made by the concern for each fiscal period. Over the years, businessmen and accountants, working together, have developed the balance sheet to present data properly classified, clearly set forth, and pertinent to financial position. A well-constructed balance sheet presents in summarized form the various properties of the enterprise classified as to liquidity and sets off against these the various interests in or claims upon those assets classified as to type and imminence of claim. The income statement presents the results of the enterprise activities that are directed at making a profit. An increase in such activities may or may not denote an increase in over-all size. Many a company has found it possible to increase production substantially with no change in productive facilities or personnel. Increased net income may not always indicate increased operations. It may result from reducing or eliminating certain unprofitable operations or it may follow more efficient use of the same resources.
- DOI
- 10.2308/tar-7064459
- Volume
- 25 (1)
- Pages
- 81-88
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref