Week 9: Accounting

What are the primary differences between a public accountant and a corporate accountant?

Public accountants work for a public accounting firm. Corporate accountants work in the accounting function of companies that produce goods and services. Corporate accountants typically work long hours around the monthly close period Public accountants tend to work longer hours during the "busy season" of their clients. Usually, this is from January to April. corporate accountants spend all of their time working for one company, they are extremely knowledgeable about the accounting for the company they work for. public accountants frequently serve many clients. Public accountants may serve a different client each week or even travel to different client sites in the same day; corporate accountants will work for the same employer all year.

How does financial accounting compare to management accounting?

The key difference between managerial and financial accounting is managerial accounting information is aimed at helping managers within the organization make decisions, while financial accounting is aimed at providing information to parties outside the organization.

What is the key driver in the evolution of the role of the controller?

The spread of technology

How does financial accounting compare to cost accounting?

While cost accounting is often used within a company to aid in decision making, financial accounting is what the outside investor community typically sees

What do accountants and auditors in the public sector do?

maintain and examine the records of government agencies and also to audit private businesses and individuals who pay taxes, and audit entities subject to other government regulations, such as businesses providing contract services to the government or organizations receiving government grant money.

What services are generally performed by public accountants?

preparation, review, and auditing of the clients' financial statements, tax work including the preparation of income tax returns, and estate and tax planning, consulting and advice involving accounting systems, mergers and acquisitions, and much more

Reports generated by various streams of accounting...

such as cost accounting and management accounting, are invaluable in helping management make informed business decisions

What is accounting?

the systematic and comprehensive recording of financial transactions pertaining to a business

How are financial accounting transactions summarized?

transactions are summarized in the preparation of financial statements, including the balance sheet, income statement and cash flow statement,

Complete the sentence: The establishment of these accounting principles is to provide...

consistent information to investors, creditors, regulators and tax authorities

What are some of the new leading roles for controllers?

controllers are expected to cover those core functions while also taking on tasks that were once performed by CFOs, whose own roles have expanded to often include oversight of technology, human resources and operations

What are the historic roles of a controller?

controllers were mostly expected to close the books, report results, oversee regulatory compliance and ensure that everyone follows the same accounting and financial-reporting processes.