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    Fundamental of Accounting - Introduction

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    Mo Lash
    This document provides an introduction to the fundamentals of accounting. It defines accounting as the process of recording, classifying, summarizing, interpreting, and communicating financial information about a business or organization. Key accounting careers are described, including certified public accountants, certified bookkeepers, accounting clerks, bookkeepers, and accountants. The three main areas of accounting practice - public accounting, managerial accounting, and governmental accounting - are outlined. Finally, the document lists the various users of financial information both inside and outside of a business.

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    Fundamental of Accounting - Introduction

    Uploaded by

    Mo Lash
    18 views3 pages
    This document provides an introduction to the fundamentals of accounting. It defines accounting as the process of recording, classifying, summarizing, interpreting, and communicating financial information about a business or organization. Key accounting careers are described, including certified public accountants, certified bookkeepers, accounting clerks, bookkeepers, and accountants. The three main areas of accounting practice - public accounting, managerial accounting, and governmental accounting - are outlined. Finally, the document lists the various users of financial information both inside and outside of a business.

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    Fundamental of Accounting- Introduction

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    This document provides an introduction to the fundamentals of accounting. It defines accounting as the process of recording, classifying, summarizing, interpreting, and communicating financial information about a business or organization. Key accounting careers are described, including certified public accountants, certified bookkeepers, accounting clerks, bookkeepers, and accountants. The three main areas of accounting practice - public accounting, managerial accounting, and governmental accounting - are outlined. Finally, the document lists the various users of financial information both inside and outside of a business.

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    © All Rights Reserved
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    18 views3 pages

    Fundamental of Accounting - Introduction

    Uploaded by

    Mo Lash
    This document provides an introduction to the fundamentals of accounting. It defines accounting as the process of recording, classifying, summarizing, interpreting, and communicating financial information about a business or organization. Key accounting careers are described, including certified public accountants, certified bookkeepers, accounting clerks, bookkeepers, and accountants. The three main areas of accounting practice - public accounting, managerial accounting, and governmental accounting - are outlined. Finally, the document lists the various users of financial information both inside and outside of a business.

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    Fundamentals of Accounting

    College University Notes: De La Salle University- Manila


    Price College Accounting 16th Edition- McGrawhill
    John Price, David Haddock, & Michael Farina
    Introduction to Accounting
    __________________________________________________________

    What is Accounting?
    Accounting provides financial information about either an organization or nonprofit
    organization. Owners, managers, investors, and other interested parties need financial information
    to make decisions. Accounting is the language of business when used to communicate financial
    information.

    Definitions in Accounting
    it is the process by which financial information about a business
    Accounting is recorded, classified, summarized, interpreted, and
    communicated to owners, managers, and other parties.
    Designed to accumulate data about a firm’s financial affairs,
    Accounting System
    classify the data in a meaningful way.
    Periodic reports containing business and financial information
    Financial Statements
    and transactions
    Is responsible for establishing records and producers that make
    Accountant up the accounting system, supervises the operations of the
    system, and interprets the resulting financial information

    Accounting Careers: Occupation Positions


    Assures an individual possess the level of knowledge and skills
    needed to carry out all key accounting functions through the
    adjusted trial balance, including payroll. To become a certified
    Certified Bookkeepers
    bookkeeper, on should (1) pass national certified bookkeeper’s
    exam, (2) sign code of ethics, (3) and submit evidence of at
    least two years of full time experience bookkeeping experience.
    Usually require one to two accounting courses and little or no
    Accounting Clerks Position
    experience
    Usually require one to two years of accounting education plus
    Bookkeepers Position
    experience as an accounting clerk
    Usually requires a bachelor’s degree but are sometimes filled by
    Accountant Position experience bookkeepers or individuals with a two-year college
    degree.

    Three Areas of Accountants in Practice: Public Accounting


    An individual must have a certain number of college credits in
    accounting courses, demonstrate good personal character,
    Certified Public Accountant pass the uniform CPA Examination, and fulfill the experience
    requirements of the state of practice, and must follow the
    professional code of ethics
    Is the review of financial statements to assess their fairness and
    Auditing adherence to generally accepted accounting principles
    (GAAP).
    Involves tax compliance and tax planning. Tax compliance
    Tax Accounting
    deals with the preparation of tax returns and audit of those
    returns. Tax planning involves the giving advice to clients on how
    to structure their financial affairs in order to reduce their tax
    liability
    Managerial Advisory Involve helping clients improve their information systems or their
    Services business performance

    Three Areas of Accountants in Practice: Managerial Accounting


    Involves in performing activities including establishing
    accounting policies, managing accounting systems, preparing
    financial statements, interpreting financial information,
    Managerial Accountant
    providing financial advice to management, preparing tax
    forms, performing tax planning services, preparing internal
    reports for management

    Three Areas of Accountants in Practice: Governmental Accounting


    It involves the keeping of financial records and preparing
    Governmental Accountant financial reports as part of the staff of federal state, or local
    government units.

    Users of Financial Information


    Inside of the Business- Financial Reporting
    1. Owners and Managers- they need financial information to have internal control and
    prevention of fraud
    2. Employees and Unions- because it will affect their employee income
    Outside of the Business- Financial Reporting
    3. Suppliers- they need to set a credit limit for your firm
    4. Banks- the bank needs to be sure that your firm will repay the loan on time. The bank will
    ask for financial information prepared by the accountant then will decide whether to
    make the load and the terms of the loan
    5. Tax Authorities- it is used to determine the income taxes based on taxable income, sales
    taxes are based on sales income,, property taxes based on the assessed value of building,
    equipment, and inventory
    6. Regulatory Agencies and Investors- it is used for reviewing the accounting methods used
    by publicly owned corporation.
    7. Customers- pays attention to financial information about the firms with which they do
    business

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