Types of Accounting
Produces information for external use through financial statements
What is Financial Accounting?
The First Step in the Accounting Cycle.
Principle that states accountants must only record information which can be verified
What is Reliability Principle?
What is Public Accountant?
A person who has an interest in the company
What is a stakeholder?
Ensures the company reports and pays all taxes which is required by the U.S. government
What is Tax Accounting?
The final step in the accounting cycle
What is arrive at post closing trial balance?
Is the assumption a company intends to continue operations
What is Going Concern Principle?
Works for federal, state, or local government
What is Government Accountants?
The amount of money earned is less than the amount of money spent
What is Loss?
Ensures managers are aware of the company's financial health in order to make decisions such as borrowing money or expanding the business
What is Management Accounting?
The accounting cycle can be summarized into these two general elements
What is Business Transactions and Financial Reporting?
States the actual cost of an item needs to be stated, not its current value
What is Cost Principle?
Examines financial records of companies to ensure proper management of funds
What is Internal Auditors?
Helps a company keep track of the goods they have on hand as well as the cost of storing and selling those goods
What is Tracking Resources?
All expenses for Ace Hardware for the month of April need to be compiled and recorded. The chief financial officer needs to determine if the company has exceeded its budget.
What is Management Accounting?
Business transactions can be classified into these two types of transactions.
What is exchange and non-exchange?
States expenses must be reported at the same time of the corresponding revenue
What is matching principle?
Specializes in examining accounting transactions for law enforcement to determine if illegal transactions have occurred
What is Forensic Accountants?
Managers use the information to determine if the company is financially stable which helps them make decisions such as borrowing money or expanding the business
What is Determine the Health of the Business?
Coffee Lovers Inc. switched to all paper products after reading about a grant provided by the United States Environmental Protection Agency.
What is Tax Accounting?
Provides information useful for investors' and creditors' decision making.
What is Financial Reporting?
States all information which is relevant to financial statement viewers must be included in the financial statement
What is Disclosure Principle?
Ensures business transactions are properly recorded in the business or organizations main accounting record
Accounting is the process of _______, ________, ________ and _________ financial transactions for a business.
What is retrieving, recording, storing, and summarizing?