Accounting Definition
Is revenue accounting a type of accounting?
No
This organization deals with the taxes that companies need to pay.
Internal Revenue Service.
This organization form has the lowest ability in raising funds.
Sole Proprietorship
What is the final goal of accounting?
To produce the financial statements that show the financial position and performance of the firm.
This organization issues regulations for private firms.
FASB
What is common between Corporations, S corporations, and Limited liability companies?
They all issue stocks and have limited liability.
What is objective evidence principle?
There must be an objective proof for the transaction.
They are supervised by accountants.
Bookkeepers.
What is the goal of managerial accounting?
To produce budgetary and performance reports for managers.
Be prudent in recognizing revenue and quick in recognizing expenses.
Conservatism
What steps are involved in accounting?
Identifying, recording, classifying, summarizing, reporting, and interpreting.
What do auditors audit in firms?
Financial statements, internal control, etc.
This organization developed the GAAP and was later replaced by FASB.
Accounting Principles Board
How does limited partnership and partnership differ from each other?
in partnership liability is unlimited, but in limited partnership liability is limited to the amount of investment (only for the limited partner).
What does revenue recognition suggest?
Revenue must be recognized as soon as earned, irrespective of cash receipt.
What is the difference between accounting and bookkeeping?
Bookkeeping is part of accounting. In fact, it is the first three steps!
What skills or skill do you need to get hired in accounting systems industry?
Programming (e.g., SQL, Python, R, etc.)
Difference between GAAP and IFRS.
GAAP is used in USA and IFRS is used in other parts of the world.
What is the difference between S corporation and Limited liability companies?
Limited liability companies are not limited in number of owners and types of stocks.
According to this principle the market value of long-term assets does not matter.
Going concern