What, Why & How?
Process of measuring, interpreting, and communicating financial data & information
What is accounting?
Financial, Managerial, and Tax
What are the three types of accounting?
The job is boring; they only do taxes; they only focus on crunching numbers.
What do accountants say are the biggest misconceptions about them?
What are Generally Accepted Accounting Principles (GAAP)
Procedure by which accountants convert data about individual transactions to financial statements
What is the accounting cycle?
Business decision making
What is the purpose of accounting?
Provides accounting information to internal users
What is management accounting?
The nature of the work and job duties
What is the number 1 reason why accountants pursued their careers?
Responsible for the regulations for accounting / financial reporting in the U.S.
What does the Financial Accounting Standards Board (FASB) do?
Either (assets = owner's equity + liabilities) or (assets - liabilities = owner's equity)
What is the accounting equation?
Financial
What type of information does accounting deal with?
Government agencies, investors, and lenders
Who are the users of financial accounting information?
Solving problems
What do accountants love most about their jobs?
Act of Congress that responded to widespread cases of accounting fraud
What is Sarbanes-Oxley Act (SOX)?
Shows a firm's financial position on a particular date or moment in time.
What is the Balance Sheet?
System of debits & credits that is the basis of accounting
What is double-entry bookkeeping?
Financing, Investing, and Operating
What are business activities (systems) involving accounting systems?
Nearly 7 out of 10
What percentage of accountants say they would stick with accounting if they could choose a different career?
Federal law that prohibits U.S. citizens and companies from bribing foreign officials
What is the Foreign Corrupt Practices Act?
Measure of operating results for goods / services sold less the expenses related to the revenue received
What is net income?
Father of double-entry bookkeeping
Who is Luca Pacioli?
Provide accounting services (auditing, tax preparation, consulting) to individuals or businesses for a fee.
Who are public accountants?
Schindler's List; The Untouchables; The Producers; The Shawshank Redemption; Ghostbusters
What are some Oscar winning films that featured (management) accountants?
Waste Management, Enron, Worldcom, Tyco, Healthsouth, Freddie Mac, AIG, Lehman, Madoff, Satyam
What are the 10 worst corporate accounting scandals of all time?
The difference between what is owned minus what is owed (for an individual).
What is net worth?