Environmental Factors in Accounting

Vocabulary terms and definitions regarding the various environmental factors that influence accounting, including economic, political, social, and cultural perspectives.

Accounting environment

The factors that affect accounting.

Economic Environment Factors

Changes such as changes in price levels, changes in economic resources, and capital market fluctuations that affect business and accounting.

Political Environment Factors

Changes in a country from time to time that lead to changes in government policies, affecting business and accounting through factors like tax rates and interest rates.

Examples of Political Policy Effects

Tax Percentage / Rate, Tourist Rate, and Interest Rate (Loan interest).

Social and Cultural Environment

Changes in patterns such as population, attitudes, life styles, religious changes, and beliefs of the people that affect accounting.

Examples of Social and Cultural Factors

Increased activity in clothing shops during festival seasons and the elimination of beef in McDonald's based on beliefs.