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The types of Accounting and Accountant Information, ACCOUNTING EQUATION,…
The types of Accounting and Accountant Information
Employee Position
Bookeeper
the creation of financial transactions includes posting information to accounting software from such source
Example source documents as invoice, cash receipts and supplier invoices
Accounting
comprehensive system for collecting, analyzing, and
communicating financial information
Accounting Information System (AIS)
organized procedure for identifying, measuring,
recording, and retaining financial information
Business Manager
Use it to develop goals and
plans, set budgets, and evaluate future prospects.
Employee and unions
Use it to plan for and
receive compensation benefits.
Investors and creditor
use it to estimate returns
to stockholders, determine growth prospects,
Tax authorities
Use it to plan for inflows, determine the tax liabilities of individuals and businesses
Government regulatory agencies
Rely on it to
fulfill their duties toward the public.
Controller
Person who manages all of a firm’s accounting
activities (chief accounting officer)
Certified Public Accountant (CPA)
Accountant licensed by the state and offering services
to the public
CPA SERVICES
Audit
Systematic examination of a company's accounting system to determine whether its financial reports reliably represent it operations
Generally Accepted Accounting Principles (GAAP)
Accounting guidelines that govern the content and form
of financial reports
Tax services
Assistance provided by CPAs for tax preparation and tax planning
Management Advisory Services
Assistance provided by CPA firms in areas
Core Competencies for Accounting
the combination of skills, technology, and knowledge that will be necessary for the future CPA
Private Accountants and Management
Accountants
Private Accountant
salaried accountant hired by a business to carry out its day-to-day financial activities
Management Accountant
private accountant who provides financial services to support managers in various business activities within a firm
Certified Management Accountant (CMA)
professional designation awarded by the Institute of Management Accountants (IMA) in recognition of management accounting qualifications
Forensic Accountant
the practice of accounting for legal purposes
FINANCIAL STATMENT
Balance Sheet
The purpose of the balance sheet is to give users an idea of the company's financial position along with displaying what the company owns and owes
Trial Balance
To prove that the value of all debit value balance equal the total of all the credit value balance. If is not equal the there is a mistake in the ledger
Income Statement
To show the reader how much profit or loss an organization generated during report period for example (week. month, year
Statement of Changes in Equity
Presents an entity's profit or loss for a reporting period, items of income and expanse recognized by displaying changes in the policy that have occured
Sarbanes-Oxley Act of 2002
Enactment of federal regulations to restore public trust in accounting practices by imposing new requirements
International Accounting Standards Board
(IASB)
organization responsible for developing a set of global
accounting standards
ACCOUNTING EQUATION
Assets = Liabilities + Owners’ Equity
used by accountants to balance data for the firm’s
financial transactions at various points in the year
Asset
any economic resource expected to benefit a firm or an
individual who owns it
Liability
debt owed by a firm to an outside organization or
individual
Owners Equity's
amount of money that owners would receive if they
sold all of a firm’s assets
reliably represent its operations