ACC-240 (T1)

Accounting 240 - Topic 1

Process of Accounting

Identifying, measuring, and communicating

Economic information about an entity

For decisions and informed judgements

Founder of Accounting

Luca Pacioli

Public Accounting

Responsible for reviewing financial statements for outside clients

CPA

Certified Public Auditor (also an exam)

Primary users of a firm’s accounting information include…

Creditors

Employers

Investors

Management

Accounting graduates are frequently employed in…

Industrial accounting, merchandising, welfare organizations, etc.

The “Big 4” CPA firms

Deloitte

PwC

EY

KPMG International

Financial Accounting

Process that results in the preparation of financial statements for an entity

Primary users of a firm’s accounting information…

Regulatory Agencies

Employees

Management

Investors

Accounting information is usually required for…

Nearly every kind of organization

The financial position of an entity is reported at a ______ in time.

period or point

Financial statements are oriented toward…

External users and are based on transactions and events that have happened in the past.

Bookkeeping Procedures

Are used to accumulate the financial results of many of an entity’s activities

The “Controller” is usually responsible for both the ___________ and ___________ accounting functions of the organization

Financial, managerial

Managerial Accounting

Being concerned with the economic and financial information to plan, control, and support the management decision-making process

The title ___________ is used to designate the chief accounting officer of a corporation

“Controller”

All states have enacted legislation that requires a minimum of ____ semester hours to be granted licensure as a CPA

150

Cost Accounting

Subset of managerial accounting related to the determination and accumulation of product, process, or service cost

_______________ accounting and ___________ accounting have primarily an internal orientation, and the data are more likely to be used in a future-oriented way

Managerial, Cost

An audit is required by ________ laws if the stock or bonds of a company are owned and _________ traded by investors.

Securities, Publicly

An unqualified or “clean” independent auditor’s opinion is…

The auditors found the financial statements to be fair, accurate, and free of major problems.

Internal Auditor

Use company staff or inside teams

External Auditor

Used Certified Financial Accountants or outside firms

Tax Practitioners typically develop specialization in the taxation of…

Trusts and Estates

International tax law issues

Partnerships in general

Internal Auditor are responsible for…

Working with the company to improve operations

External Auditors are responsible for…

Third parties who verify financial statements for the public

Accounting information is required by government units at these levels…

Federal

Municipal

State

IFRS stands for…

International Financial Reporting Standards

GAAP stands for…

Generally Accepted Accounting Principles

Financial Accounting vs Managerial Accounting (Financial)

GAAP or IFRS Rules, External Users, Past Results

Financial Accounting vs Managerial Accounting (Managerial)

Subset is cost accounting, internal users, furture planning