Accounting CH1LS

Managerial accounting

"private accounting" involves working for a single business in industry

The accountant

-establishes the records and procedures that make up the accounting system - supervises the operation of the system -interprets the resulting financial info.

Accountants usually choose to practice in one of the three areas

-public accounting -managerial accounting - governmental accounting

(Occupations with similar job duties to accountants and auditors)

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Statements of Financial Standards (FASB)

Accounting principles developed by the FASB

what is Accounting

Accounting provides financial information about a business or a nonprofit organization. Owners, managers, investors, and other interested parties need financial information in order to make decisions. Because accounting is used to communicate financial information, it is often called the "language of business."

Sole proprietorship

Business entity owned by one person. Life of business ends when the owner is no longer willing or able to keep the business going. Many small business

Cost Estimators

Collect and analyze data to estimate the time, money, resource and labor required for product manufacturing, construction, projects, or services. Some specialize in a particular industry or product type. Bachelors degree

Stockholders

Corporate owners, called __________ or shareholders, are not personally responsible for the debts or taxes of the corporation. If corp. is unable to pay its bills, the most they can lose is their investment in the corp.

Certified Public Accountants (CPAs)

Many public accountants are this, must have certain number of college credits in accounting courses, demonstrate good personal character, Pass uniform CPA exam, and fulfill the experience requirements of the state to practice. Also must follow code of ethics

Bookkeeping, Accounting and Auditing Clerks

Produce financial records for organizations. They record financial transactions, update statements, and check financial records for accuracy. High school diploma or equivalent

SEC

Responsible for reviewing the accounting methods used by publicly owed corporations. The SEC has delegated this review to the accounting profession but still has the final say on any financial accounting issue faced by publicly owned corporations. If the SEC does not agree with the reporting that results from an accounting method, the SEC can suspend trading of a company's shares on the stock exchange

International accounting

accounting principles used by different countries

Partnership

business entity owned by two or more people. Common in businesses that offer professional services, such as law firms, accounting firms, architectural firms, medical practices, and dental. Ends when one or more partners withdraw, when a partner dies, or when the partners decide to close the firm. Partners are responsible individuals and jointly for firm's debts when firm is unable to pay

Corporation

business entity that is separate from its owners. Has a legal right to own property and do business in its own name. one or more owners, even thousands. Can continue indefinitely, ends only when business goes bankrupt or when the stockholders vote to liquidate.

Financial Statements

data that is summarized in periodic reports

Seperate Entity Assumption

describes the concept of keeping the firm's financial records separate from the owner's personal financial records

Top Executives

devise strategies and policies to ensure that an organization meets its goals. They plan, direct and coordinate operational activities of companies and public or private- sector organizations. Bachelors degree

Tax Examiners and Collectors, and Revenue Agents

ensure that Govt. gets their tax money from businesses and citizens. They review tax returns, conduct audits, identify taxes owed, and collects overdue tax payments. Bachelors degree

Discussion memorandum

explanation of a topic under consideration by FASB

Limited Liability Partnership (LLP)

general partnership that provides some limited liability for all partners. partners are responsible and have liability for their own actions and the actions of those under their control or supervision. They are not liable for the actions or malfeasance of another partner.

Personal Financial Advisors

give financial advice to people. They help with investments, taxes and insurance decisions. Bachelors degree

Budget Analysts

help public and private institutions organize their finances. They prepare budget reports and monitor institutional spending. Bachelor's degree

Auditors report

independent accountants review of a firms financial report

Postsecondary Teachers

instruct students in a wide variety of academic and vocational subjects beyond the high school level. They also conduct research and publish scholarly papers and books. Doctoral or professional degree

Accounting System

is designed to accumulate data about a firm's financial affairs, classify the data in a meaningful way, and summarize it in periodic reports called___________

Accounting

is the process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties.

Stock

issued in the form of __ certificates, represent the ownership of the corporation.

Governmental Accounting

keeping financial records and preparing financial reports as part of the staff of federal, state, or local govt. units. Govt. units do not earn profits. However, Govt. units receive and pay out huge amounts o money and need procedures for recording and managing this money

Social Entities

nonprofit organizations, such as cities, public schools and public hospitals

Management Analysts

often called management consultants, propose ways to improve an organization's efficiency. They advise managers on how to make organizations more profitable through reduced costs and increased revenues. Bachelors degree

exposure draft

proposed solution to a problem being considered by FASB

Financial Analysts

provide guidance to businesses and individuals making investment decisions. They assess the preformance of stocks, bonds and other types of investments. Bachelors degree

Entity

recognized as having its own separate identity (individual, town, university, or a business)

Economic Entity

refers to a business or organization whose major purpose is to produce a profit for its owners

Financial Managers

responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop straggles and plans for long-term financial goals of their organization. Bachelors degree

Creditors

those people, companies, or govt. agencies to whom the business owes money