Bellwork
Financial Reports
Financial Reports 2
Accountants
Pros and Cons
100
What involves collecting, recording, classifying, summarizing, reporting, and analyzing firm’s financial activities according to a standard set of procedures?
Accounting
100
What are the two types of financial reports?
Internal and External
100
What is an Annual Report?
A yearly document that describes a firm’s financial status.
100
What are the 2 types of Accountants?
Public and Private
100
What are the pros for Public Accountants?
Job advancement
Position allows for specialization
Work with a variety of people
Networking Opportunities
Travel opportunity
200
Give examples of collecting financial data.
bank statements, contracts, agreements, verification statements, transportation receipts, invoices, vouchers, bank statements, cash register tape, credit card receipts and sales orders.
200
Describe internal financial reports.
Used within the organization; managerial accounting is used
200
What are the 3 financial statements in an annual report?
Balance Sheet
Income Statement
Statement of Cash Flows
200
Describe public accountants.
Independent Accountants work for a fee
Audit (review) financial statement (important responsibility)
Must complete an approved bachelor’s degree program and pass a test prepared by the American Institute of Certified Public Accountants (CPA).
200
What are the cons for Public Accountants?
Very stressful
Competitive
Long work hours
CPA is usually required
300
Give examples of recording financial data.
- General ledger
- Subsidiary ledgers
- Cash receipts
- Bank statements
- Invoices
300
Describe external financial reports.
Used by outsiders that do not work for the organization; financial accounting is used
300
What does annual means?
Yearly
300
Describe private accountants.
Work for one organization
To become a private accountant, you must pass an examination
300
What are the advantages of Private Accounting?
More relaxed atmosphere
Steady, flexible work environment
Can reach management level without a CPA
400
Give examples of financial reports.
Balance sheet
Income Statement
Statement of Cash Flows
400
What does GAAP stand for?
Generally Accepted Accounting Principles
400
What is an income statement?
An income statement is one of the three important financial statements used for reporting a company’s financial performance over a specific accounting period.
400
About 1.4 million accountants in the United States that are either public accountants or private accountants.
True
400
What are the cons of Private Accounting?
Lack of variety in job duties
Fewer opportunities to specialize in the field
500
What does analyzing financial data means?
breaking data apart, being detail-oriented, being very specific
500
What is the Financial Accounting Standards Board (FASB) responsible for?
Financial Accounting Standards Board(FASB) is a private organization that is responsible for establishing
financial accounting standards in the United States.
500
Give examples of an income statement.
500
According to the Bureau of Labor Statistics, jobs will increase to 10 percent by 2025.
False, it's 2026.
500
What are the 3 basic Accounting Procedures?
The Accounting Equation ( 3 Main Accounting Elements)
Assets
Things owned by a firm
Liabilities
What a firm owes to its creditors
Owner’s Equity or Net Worth
Total amount of investment in the firm minus any liabilities.