conclusion

In the modern world business activities play a major role in each individual’s life. These
business activities are carried out by small ,medium ,large scale organizations which
contribute to global economic development, thereby contribute to social well being.

Society comprise of people & entities which operate with the purpose of profit generating
or to establish social welfare. People in the society invest in these entities with the hope
of satisfactory returns. These investors require information to monitor how their
investments are utilized by the entities & the results generated.

Therefore the financial statements should present a true & fair view. Investors would be
able to make effective decisions only if a true & fair view is presented through
accounting .Modern accounting is not only concerned about the impact of business
practices on the financial bottom line but also the impact on employees, communities &
society at large.

It may not be apparent to some but every business and every individual uses accounting
in some form. An individual may knowingly or unknowingly use accounting when he
evaluates his financial information and relates the results to others.

Thus accounting has a significant influence on investor decisions & society. Although it
is invicible to most people in the society accounting plays a significant role in the life of
individuals in the society.