Types of Businesses
A business that is owned and managed by one individual who receives all the profits and bears all the losses.
What is SOLE PROPRIETORSHIP?
Responsible for recordkeeping for payroll accounts receivable or accounts payable.
Usually requires one to two accounting courses.
Requires little or no work experience.
What is an Accounting Clerk?
Although not enforceable against AICPA members, principles provide ideal standards of ethical conduct stated in philosophical terms.
What are Principles?
Accountants must choose between right and wrong.
Accountants are responsible for entering correct entries.
Accountants are responsible for true and correct financial statements.
Integrity is necessary for accountants to build trust in regards to their professional judgments.
What is Integrity?
Learning skills desired for the marketplace
Information and Communication Skills
Thinking and Problem-Solving Skills
Interpersonal and Self-Directional Skills
What are 21st Century Skills?
A business that is owned and managed by two or more individuals who receive all the profits and bear all the losses.
What is PARTNERSHIP?
Responsible for recording business transactions.
Large firms may supervise accounting clerks.
Usually requires one to two years of accounting education plus experience as an accounting clerk.
What is a Bookkeeper?
Responsibilities – exercise sensitive and professional moral judgments.
Public Interest – serve the public interest, honor the public trust, and demonstrate commitment to the profession.
Integrity – perform professional responsibilities with the highest sense of integrity.
Objectivity and Independence – be independent in fact and appearance in providing auditing and other attestation services.
Due Care – observe technical and ethical standards, improve competence, and perform to the best of your ability.
Scope and Nature of Services – follow the Code of Professional Conduct in determining the scope and nature of services.
What are Ethical Principles?
Accountants must be:
Impartial
Honest
Free of personal conflicts
Accountants must not be influenced by personal interests.
Accountants should behave in a way that does not suggest inappropriateness.
What is Objectivity?
Skills directly related to employment
Resources – Ability to use materials, people, money, and time efficiently and effectively.
Information – Ability to obtain and use knowledge.
Systems – Ability to learn and understand different foundations.
Interpersonal Skills – Ability to get along and work with others.
Technology – Ability to learn and use different types of technology.
What are Workplace Skills?
A business that is owned by stockholders and has rights and responsibilities as if it were a person.
What is a CORPORATION?
Responsible for preparing financial statements and reports for a business.
Possibly supervises bookkeepers.
Usually requires a bachelor’s degree.
Sometimes can be filled with a person who has experience as a bookkeeper or has a two-year degree. The size of the firm will impact the education and experience requirements.
what is an Accountant?
Rules represent minimum standards of ethical conduct stated as specific rules.
These are enforceable against AICPA members.
What are Rules?
Accountants do not have an interest or profit financially from the companies they audit.
Accountants must have the public’s confidence in their professional services.
What is Independence?
Personal qualities such as responsibility, integrity, and character
Basic Skills – Ability to read, write, and perform mathematical calculations.
Thinking Skills – Ability to learn, make decisions, listen to others and solve problems.
What are Foundation Skills?
a business structure designed to combine the tax advantages of a partnership with the operating advantages of a corporation.
what are LIMITED LIABILITY COMPANIES?
A trusted financial advisor who helps individuals, businesses, and other organizations plan and reach their financial goals.
Requires a certain amount of education and experience as well as passing a Uniform CPA exam. The majority of the states require 150 credit hours of education at an accredited college or university as a prerequisite to CPA certification.
What is a Certified Public Accountant?
The AICPA’s Division of Professional Ethics provides published interpretations of rules of conduct when practitioners have frequent questions.
Before interpretations are finalized, they are sent to a large number of key people in the profession for comment.
Although not enforceable, a practitioner must justify a departure.
What are Interpretations of Rules of Conduct?
Accountants should be knowledgeable in their profession.
Accountants must have the skills necessary to perform their jobs.
Accountants must have experience in their field.
Accountants are expected to keep abreast of current laws by continuing education classes.
what is Competence?
Accountants usually choose one of the following career paths to practice:
Public Accounting
Managerial Accounting
Governmental Accounting
Accountants must not share private information regarding their clients.
Accountants are expected to protect personal and private information regarding their clients.
An accountant should not use information learned for personal gain.
What is Confidentiality?