Issues In Accounting Essay Example

Issues in Accounting Essay example
ISSUES IN ACCOUNTING EDUCATION
Vol. 26, No. 4
2011
pp. 797–806
American Accounting Association
DOI: 10.2308/iace–50053
Home Heaters: A Holistic View of the
Financial Statements
M. Cathy Claiborne and Kirkland A. Wilcox
ABSTRACT: In this case, two start–up companies in the same industry have identical economic transactions. Although both companies follow
generally accepted accounting principles (GAAP), each manager makes different choices and estimates when applying
GAAP. By preparing the financial statements, calculating ratios, and comparing and contrasting the two companies, students see how choices and
estimates made by management affect the financial statements. They also see the challenge faced by users of financial...show more content...
Requirement
Record these 12 transactions for Eads's and Glenwood's п¬Ѓrst year of operations before going to
Part B. Exhibit 1 contains a basic chart of accounts. Note: you will not use all accounts in this part of the case.
PART B
It is now December 31, and each manager must make several decisions.
1. Each manager must estimate the amount of accounts receivable that will probably not be collected. They make the following estimates:
Glenwood Heating, Inc.: The manager estimates that 1 percent of ending accounts receivable will be uncollectible.
Eads Heaters, Inc.: The manager estimates that 5 percent of ending accounts receivable will be uncollectible.
Issues in Accounting Education
Volume 26, No. 4, 2011

Home Heaters: A Holistic View of the Financial Statements
799
EXHIBIT 1
Home Heaters
Chart of Accounts
Asset Accounts
Cash
Accounts receivable
Allowance for bad debts
Inventory
Land
Building
Accumulated depreciation, building
Equipment
Accumulated depreciation, equipment
Leased equipment
Accumulated depreciation, leased equipment
Liability Accounts
Accounts payable
Interest payable
Note payable
Lease payable
Equity Accounts
Common stock
Retained earnings
Dividends
Sales
Cost of goods sold
Bad debt expense
Depreciation expense
Interest expense
Other operating expenses
Rent expense

Provision for income taxes
2. Neither manager recorded cost of goods sold at the time of
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Accounting Essay
The Financial Accounting Standards Board is board of seven independent members who are accounting professionals that was developed in 1973. This
seven member group is responsible for communicating the standards that are in place for financial accounting and reporting that takes place in the
United States. Generally accepted accounting principles (GAAP) are the standards that are used by the FASB to govern the way in which corporations
prepare their financial reports. This process of utilizing these standards to maintain and report accounting files is the only method that the US
Securities and Exchange Commission will accept. The members include; Michael Crooch, CPA, George Batavick, CPA, Edward Trott, CPA, Leslie
Seidman, CPA, Donald...show more content...
securities regulation with federal, state, and foreign authorities. (US SEC Website) The members include The Public Company Accounting Oversight
Board was created in 2002 by the Sarbanes –Oxley Act and is a non–profit and private sector corporation. The PCAOB was established in reaction to
the increased number of corporations reporting changes to their past financial statements. The US Securities and Exchange Commission appoints of
four members to the board. Two members must be certified public accounts and each member serves a term of five years. Much like the SEC board,
the members terms are staggered and the headquarters in located in Washington DC. Their mission is "to oversee the auditors of public companies in
order to protect the interest of investors and further the public interest in the preparation of informative, fair and independent audit reports." (PCAOB
website) The Act of 2002 gave the PCAOB four major responsibilities; registration of accounting firms that audit public companies that are trading in
US Securities markets,

Financial Accounting Essay
Financial accounting is one kind of accounting different from the management accounting in the accounting system. As management accounting is for
"internal" whereas financial accounting is for "external". The following is a detailed explanation and analysis of the major objective and role of
financial accounting. The purpose of financial accounting is to measure the performance of the entity and therefore provides the financial information
to different stakeholders. Stakeholders will have their decision – making according to the financial report issued. James, Arthur and Robert(1978) have
stated that: "Most decisions are made on the basis of summary–type reports rather than firsthand information."
A comprehensively summarized...show more content...
Moreover, if the current ratio is too low, it shows that the corporation may have financial difficulty. Moreover, there are also some of the other external
users. Their need to receive financial information is not immediate, but also important. As the regulatory body, government is responsible for
monitoring different companies so as to maintain the financial stability. More than that, the listed companies which issue their shock publicly usually
need to report their activities to the government. The community can distinguish whether the company's finance is steady through financial report and
therefore the community's feelings can directly influence the image of the company. The employee can use information to know the possibility of
bankruptcy of their company to decide whether they should leave the company to prevent the wages. Suppliers may pay attention to the cash flow of
the buyers so that they can decide whether provide the trade credit to it. In fact, financial accounting provides a great deal of assistance in efficient
resources allocation. It can be explain in "external" and "internal". "External" means social resources allocation. The effective use of social resources is
from entrepreneur and market, but not the government. Companies can use financial statement to induct capital to a correct direction because users
will use financial information for the best investment to maximize their benefits. It helps to avoid the loss of resources in the

Basically, creative accounting does involve some manipulation in financial statements, especially in the balance sheet. It can be simply means income
or earns something. Creative accounting will always be reflected in financial indicators and fundamentally the factor of company solvency, doesn't
matter what is the reason of it. This is because not everything that looks like profit is really a profit. The benefits and drawbacks of creative accounting
are vary with different scenarios. Although most of the times creative accounting are tend to bring disadvantages to the organization and identifies with
not to use it but there are not always so catastrophic scenarios. If creative accounting cohered with an ethical and legal standards as well as the GAAP,
they can absolutely yield immense interest to the company as...show more content...
That is why creative accountants undertake this phenomenon in good intentions in order to promote their companies. This is where we call it as
money–spinning attractions. Companies also want to show a steady income stream to impress the investors and to keep the shares prices stable.
Creative accounting also may help to maintain or increase the share price by minimizing debt level to the lower risk and by showing improved profits.
This can help the company in raising new capital and in takeover attempt. On the other hand, the unreasonable and dishonestly excessive use of creative
accounting will led to the downfall of numerous high–profile companies. This gave rise to the need for developing the GAAP. As for instance, recently
the Great Giant like Enron failed as a result of cooking the books to hide the economic actuality. One of the example in the case of US film industry
in which they claim huge expenses against successful movies to lower the remuneration of writers, producers as well as actors (Grover 199

Essay- Accounting as a Profession
Introductory Part
Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities besides preparing
financial statements and recording business transactions, including computing costs and efficiency gains from new technologies, participating in
strategies for mergers and acquisitions, quality management, developing and using information systems to track financial performance, tax strategy, and
health care benefits management. They perform these vital functions by offering an increasingly wide array of business and accounting services to their
clients, in order to provide information to them.
Accounting– the best profession
There is a lot to gain from a career in...show more content...
Besides preparing financial statements and recording business transactions, they also calculate costs and efficiency gains for new technologies,
participate in the set up for acquisitions and mergers, and develop IT systems to track financial performance, tax strategy, and employee benefits
management.
There are some options a student can follow in choosing a career in accounting.
Audit
Audit is the bread and butter work of accounting. Accounting auditing careers involve checking accounting ledgers and financial statements within
businesses, public and not–for–profit organizations. Being increasingly computerized, this work can rely on sophisticated random sampling methods.
This provides a solid foundation to future specialist work, and enables us to understand how an organization makes money.
Budget Analysis
A budget analyst develops and manages an organization's financial plans. Besides quantitative skills many budget analyst jobs require good people
skills because of negotiations involved in the work.
Financial
Financial accountants draw information from the general ledgers to prepare financial statements. They also take part in the business's important

financial decisions involving mergers and acquisitions, employee benefits planning and long–term financial projections. This work can vary from week
to

My Professional Field Is Accounting Essay
1.Explain why this topic interests you and is related to your area of study or professional field.
My professional field is accounting, I've been working as accountant nearly 10 years now. My carrier start as assistant of accountant. To become
"Accountant" I took long way to come. First of all I started study book keeping certificate, it's challenging for me. Working and study hard wasn't easy,
took me two years to take the certificate. Afterward, I joined accounting firm. At the accounting firm, I met Tax accountants as my managers. They did
brilliant job, I couldn't believe how they can handle that much amount of work at one time. And it's has to be accurate. I learned a lot at the accounting
firm, had certificate without actual job training can't be real accountant. We definitely need on the job training. It's hard work at the firm, maximum
60hours overtime work a month. I did two years as training period of my accounting carrier, then I got new job which doesn't have overtime work
since I want to study to persuade my carrier. My carrier goal is to become manager in five years and I want to be CFO. So learning accounting
knowledge is must for me, also I need certain amount of accounting credit to be eligible candidate of CPA exam qualification.
2.Research this topic and write an essay that incorporates information from 3 different sources.
What we need to do as accountant, its diversity assignment to do. From daily booking to monthly close, tax calculation and audit.

Accounting Essay
Accounting
The nature of work of accountants and auditors is to prepare, analyze, and verify financial reports and taxes, and monitor information systems that
furnish this information to managers in business, industry, and government. The major fields of accounting are Public accountants who have theirown
business or work for public accounting firms. They perform a large range of responsibilities such as doing taxes, numerous accounting and auditing,
consulting activities for their clients, who may be corporations, governments, nonprofit organizations, or individuals. Management accountants also
called industrial, corporate, or private accountants record and analyze the financial information of the companies...show more content...
If they are self–employed then they may work more or less depending on who much work they are willing to take on for the clients.
The employment outlook for accountants who have earned a professional degree through certification or licensure should have the best jobs.
Applicants with a mater's degree in accounting, or a master's degree in business administration with a concentration in accounting, may also have a
stronger advantage in the job field. Employers of many businesses always seek well–rounded applicants with strong interpersonal skills. Competition
with in the fields of accounting will always remain at the top for the most prestigious jobs with the bigger firms. The employment for accountants is
expected to grow about as fast as the average occupations through the year 2006. The need to replace the jobs of people who retire or transfer to other
jobs will continue to grow annually. Also as the company grows the number of businesses established will increase. Do to the increasing companies
and occupations the changing role of accountants will also spur job growth. Accountants will perform less auditing work and less tax work due to
growing competition from tax preparation firms, but they will offer more management and consulting services in response to demand. Accountants will
take a greater role as they develop more modern and flexible accounting systems, and focus more on analyzing operations rather than just

What Is An Accountant? Essay
What is an accountant? An accountant is a person whose job is to make sure financial accounts are going well with the company. After completing
an accounting internship I thought accounting is an amazing career to go into because you get to experience how companies deal with their money
and how they make their income. Accounting is often viewed as a boring career because all you do is deal with numbers but in reality is an
interesting job to perform if you would like to be a part of the process that makes a company or firm keep functioning. Every business needs an
accounting system, from a simple small store to the largest company, they all need to track expenses and income. Accountants are responsible for many
duties some of which, according to the National Center for O*NET Development are to,
Prepare, examine, or analyze accounting records, financial statements, or other financial reports to assess accuracy, completeness, and conformance to
reporting and procedural standards. They report to management regarding the finances of establishment. They also establish tables of accounts and
assign entries to proper accounts (2011).
Accountants are also responsible for developing, implementing and modifying recordkeeping and accounting systems, they need to be able to use up to
date technology to make their jobs much more sufficient.
Skills
Some of the most important skills accountants must hold are active listening, mathematics reading comprehension and logic. An accountant

The Fundamentals Of Financial Accounting
1.You just got done spending 3 ВЅ months of your life taking a course called "Fundamentals of Financial Accounting". In your own words, what was
the course all about? What was the purpose? What's financial accounting?
The Fundamentals of Financial Accounting class was about learning the basic concepts of accounting and learning how to properly prepare and
analyze financial transactions and statements following all the regulations. The purpose of this class was to understand the job of an accountant and to
be able to comprehend the financial records. Financial accounting is the act of recording and keeping record of all of the transactions of a business and
producing financial statement to provide investors, creditors, and other external users with information to see a company's performance.
2.What (are/is) Generally Accepted Accounting Principles(GAAP)? Why are they needed?
GAAP are specific procedures that business should follow when they prepare their financial statements. GAAP is needed because it makes accountants
provided useful information to investors, creditor, and other external users. This helps investors see whether or not is convenient for them to invest in
a company or to help the creditors see is they should provide a business with a loan.
3.Are ethics important in financial accounting? Yes or no and WHY. Give a SPECIFIC EXAMPLE of how this area is important to YOU as a
member of society?
Ethics are extremely important in financial accounting. For

Bank Accounting Essay
gaining importance that most of the bank's income is earned from its non–core activities which are treasury operations, corporate services and so on.
So we try to assess the quality of income in terms of income generated by core income activities like income from lending, advances etc.
The factors considered by the supervisory and regulatory authorities to assess the quality of assets are
To evaluate the undistributed profits and reserves, retained earnings, profits, and their authentication whether an adequate capital are generated through
this channel or not.
To determine the quality sources of earnings and incomes, budgeting policies and Management Information Systems (MIS).
Ratings Criteria for Earnings:–
A rating of A+ or 1...show more content...
1.5.5 Liquidity Management: –As we all know that the liquidity ratio states the level or limit up to which a bank is able of satisfying its respective
liabilities. Banks generate money by mobilizing short–term savings of the people converting into deposits at lower interest rate, and then lending these
funds in long–term loans at higher rates of interest, so it is quite risky for banks to mismatch their lending interest rate. Liquidity is measured by the
level of earnings, the fifth component of CAMEL Framework is liquidity (stability of customer, whether loans and deposits are well matched and
overall liquidity position), and it is an important element for both good and bad banks. All banks are highly concerned for their liquidity risk; i.e.,
the problem which arise due to the bank failure in meeting its current financial obligations (e.g., depositors) because of inadequate current assets
such as cash and quickly cash type marketable securities, Specifically at the time of economic recession and to avoid these type of problems every
bank tries to analysis its liquidity position regularly and make arrangements to avoid such problem..Laruccia and Revoltella (2000) found that banks
with low net loans to assets ratio (good liquidity position) tend to obtain better BFSRs assigned by Moody's. Poon and Firth (2005) and Pasiouras et
al. (2006)

Accounting Essay
Accounting There are many different types of accounting. I haven't made the choice of which particular part of the profession I am going to go into. I
am going to focus on financial accountant. The decision to become an accountant is usually not made until college.
However general accounting and bookkeeping classes can be taken in high school. In college, the student needs to decide on a more specific field of
accounting. An accountant has many choices regarding what particular field of accounting to specialize in, depending on the financial information he
or she wants to analyze and how it is done. Financial accountants, tax accountants and internal auditors are all accountants in general but require
different training and...show more content...
Accounting may not seem like a popular profession, or a very interesting one, but once one looks deep into the separate activities and training of each
specialization, on can see that accounting may appeal to many different types of people for many different reasons.
A unexpected fact I found about accounting is that 90 percent of all CEO's have a background in accounting. There is a good outlook for accounts,
more than 300,000 new jobs in accounting and auditing expected by the year 2005 and a faster than average growth is expected over the next ten
years. Salary and status, increase with time and range widely on location, job experience, and job description. A graduate makes about
28,000 plus overtime. A experienced accountant in a major firm get 30,000 to 40,000. A manager salary ranges from 40,000 to 80,000. A CPA (
Certified Public Accountant) make between 100,000 and 200,000. A CPA need to take extra test giving by the state and has to have two years of
experience in public accounting. Accounting has been mainly white men but last year 57% of new hiring were women.
In the accounting profession, there is very little writing that takes place in a working environment. This aspect of accounting is attractive to me
because I am not a big fan of a lot of writing but as in every profession there is still writing that is done. Before the time of computers all accounting
was done by

Accounting as a Professional School Essay
Accounting professionals are in very high demand. The nature of work in accounting is so vast an individual would have so many different areas of
accounting to choose from. Accounting requires people who can work with complex business structures, computer systems, and financial analysis
packages. Accounting work further requires an aptitude for mathematics and the ability to compare and analyze accounting data quickly. Accountants
also need to have strong communication skills as they must effectively communicate accounting data to their employers and/or clients. The accounting
profession also demands a high level of integrity and morality because the financial data prepared by accountants is used by business managers to run
their...show more content...
Following the undergraduate degree, an accounting student would choose an exclusive area to specialize in and work towards a completion of an
additional year in university to finalize the 150 credit hours required in accounting to be eligible to sit for the Certified Public Accounting board
exam. The 150 credit hours are needed to obtain the required body of knowledge and to develop the skills and abilities needed to be a successful
CPA. After the theory portion of the educational experience is completed, the most important aspect becomes practical experience. Practical experience
is what drives the market. The American Institute of Certified Public Accountants requires that either a one tier or two tier systems is required to obtain
the CPA designation. This requires that relevant work experience is needed to become certified. This hands on experience helps to position a potential
certified public accountant for a long and successful career. This professional curriculum is very detailed and requires a lot of individual steps entailed
to reach the point of designation. If it were made into a professional school these segregated steps combined together would not only help to make
things simpler, but it would allow the accounting profession to be similar to the curriculums of medicine, pharmacy and law. With an undergraduate
degree, graduate theory and practice for four

Persuasive Essay On Forensic Accounting
Many people have no clue how their finances work or how they are managed. Most people just know that someone they pay does it for them. But
who are these unsung heros of the financial world? Accounting is a very broad and large field of study where a person with a degree has many
career options. Many people's ideal job in the accounting field would be forensic accounting for the FBI. Accountants are the people who prepare and
examine financial records, ensure taxes are paid and filed properly, and help businesses run their finances smoothly. Forensic accounting is a more
specific job where they looking for fraud or money laundering in a company. Forensic accountants need to not only be good with numbers and money,
but should also be able to quickly spot abnormalities in the numbers. Accountants must be accepted into their college's business school or must become
a finance major. Most colleges require around a 3.5 GPA to be accepted into the business school. To receive an accounting degree, one must "complete
a five–year, 150–credit hour accounting program (awards a bachelor's or master's degree)" ("Accountants and Auditors." Missouri). 150 hours is much
more than most other degrees and shows that accounting is a strenuous course schedule and is not for the lazy. Accountants also must get their CPA
license to fully practice; "CPAs are licensed by their state's Board of Accountancy. Becoming a CPA requires passing a national exam and meeting other
state requirements."

Accrual Basis Accounting Essay example
Accrual Basis Accounting
Accrual accounting is a system of accounting that is based on the accrual principal accounting. This principal requires revenue to be recognized and
recorded when earned. Expenses are to be recorded when they occur. The accrual basis of accounting is used by most companies. Very small
businesses and individuals use cash basis accounting.
The major distinction between the accrual and the cash basis of accounting is when revenue and expenses are recognized. When the cash method is
used, revenue is recorded when money is received. Expenses are recorded only when money is paid. The Accrual method accounts for revenue when
it is earned. Expenses for goods and services are recorded when they are incurred. The...show more content...
Some payroll policies allow for the carry over or roll over some or all unused time that has been accrued into the next year. If the accrual policy does
not have any type of rollover, any accrued time that has been taken is usually lost at the end of the employer's calendar year.
The accrual basis of accounting conforms to the GAAP financial statements preparation provisions for external users. The US GAAP website describes
financial guidelines, provides an understanding of the financial guidelines, and describes management's general flexibility. You must understand the
flexibility in the GAAP standards and relate it to the individual company and its industry. Regulators view earnings quality as high whengenerally
accepted accounting principles are adhered to.
Management typically describes the accounting choices and estimates that are embedded in the company's key critical accounting policies in the
"Management Discussion and Analysis" (MD&A) section of the Form 10–K.
Accrual accounting enables management to exercise its unique understanding of their business to convey important information about its economic
welfare (relevance) and allows management some discretion to manipulate important information about the company's economic welfare (reliability).
Accounting analysis evaluates management's judgment on how it chooses to use accruals.
The company's current accounting policies should be creating accurate accounting estimates. Extreme accruals that

Reflection Paper In Accounting
1.INTRODUCTION This is our third and last semester study in Foundation in Business(CFPI). One of the course that we need to take in this semester
is Fundamental of Accounting (ACC1201).The general public has tended to view accounting as a traditional,never–changing subject.This is not
true;despite appearances,accounting is a dynamic subject.This is a very fun subject for our group members as some of us are very interested in
accounting and some of us have accounting background in the secondary school.This course is teach by a very experienced lecturer,who is Miss Wang
Pei Ling.This is our fifth week studying in this course and a foreign student has joined our accounting class today.Lu Zhenyuan,a foreign student,who
has no previous background in accounting felt very confused and helpless after attending the accounting class.He has approached to our group for help
in this subject.The purpose of this assignment is to teach and explain the important topics that he missed within this month in detailed.In this

Luca Paciolli's Accounting System
The accounting system we use today started in Venice in renaissance period over 520 years ago. The trade business increased hugely during this
time and all the financial recordings had to be written down to help people see how their business is doing. During that time in 1494 the first book
about was published in accounting by Luca Paciolli and was called "The Collected Knowledge of Arithmetic, Geometry, Proportion and
Proportionality". He was called "The father of Accounting" and most of his described principles have been used up until this day. The same
recordings of business are still being used today to keep a track of company's profit or loss, assets, liabilities and owner's equity for a given period. This
information is very...show more content...
It can also be explained why the accountant will choose lower assets, lower profits and higher liability value. It can be explained as it is better to
be able to pay off all losses and earn no profit than pay an interest on profit you haven't earned. 3.Consistency. When the company chooses the
accounting method, it should continue using it throughout. It should be the same from period to period and year to year. If the company chooses to
change the method, it should be disclosed and explained why the company made such a change. This concept can also be described as logical
coherence among parts or things, when the same sequence is followed from one period to another. 4.Accruals. This occurs when sales and expenses
are recorded when they incur, not when they are paid out or the payment is received. In other words, the record should be made immediately no
matter if the payment was received or not, paid out or not yet. Accruals can be called unpaid bills, sales on credit and other expenses over due. The
conventions are as follows: 1.Separate entity. This means that accounting shows financial activity of the business as a whole, not its owners or
employees. For example, Dunnes Stores is a separate entity from founder Ben Dunne. 2.Realisation. Any

Reflection Paper Accounting
Reflection paper
Accounting to me is challenge as a whole; it is a good subject to learn because accounting knowledge is always in demand. So far, I am on a good
path learning the basics of accounting. I've learned how accounting affects business and how it allows organizations to identify cash inflows and
outflows.
This accounting course provided me a great opportunity to understand the various important aspects of accounting that I believe will be helpful in my
future practical life. I need to begin my own particular business in future for that it 's important to have great knowledge of Financial and Managerial
Accounting. This course has helped me to comprehend numerous essential ideas of accounting. This knowledge is going to help me...show more
content...
Chapter 05
In chapter 05, I learned different imperative parts of merchandise transactions and there recording. I found out about contra accounts Sales Returns and
Allowances account, Sales Discounts account, purchase returns and Allowances account and Purchase Discounts account. Two sorts ofinventory
processed took after i.e. perpetual inventory system and periodic inventory technique both having their own particular benefits and negative marks and
ought to be utilized according to the need of specific business. Presently computerization as encouraged numerous firms to utilize perpetual inventory
method for instance it has get to be economical for some retail locations to utilize perpetual inventory methodology notwithstanding for products of low
unit value, for example, goods.
Chapter 06
Chapter 06 discusses the diverse methods of inventory accounting i.e. FIFO method, LIFO method and Average cost method. All have diverse merits
and negative marks under distinctive situations. For e.g. the merits of FIFO methods are–(1) Easy application, (2) the expected flow of costs relates
with the ordinary physical flow of goods and (3) the balance sheet sum for inventory is liable to surmise the current market and so on. Burdens of FIFO
can be – amid continually rising prices FIFO can offer ascent to paper profits. Amid times of rising prices, FIFO makes higher net income since the
costs charged to cost of goods sold are lower. However LIFO expect that the

Accounting
Question 1: * Proficient–level: * There are several important functions performed in an organization, among which accounting is one of them. Define
the accounting function and discuss how it differs from double–entry bookkeeping. Answer: According to the Dictionary of Accounting Terms,
Accounting is defined as a one step process of recording, measuring, interpreting and communicating financial data by preparing financial statements in
order to reflect financial condition and operating performance whereas Double–entry bookkeeping is the record of transactions that require entries in at
least two accounts. * What types of information are critical to the performance of the accounting function in an organization?...show more content...
* Distinguished–level: * For each of the selected opportunities, state the education and certification requirements necessary to be considered for
employment. Answer: CPA– CPA's need to pass an exam prepared and graded by the American Institute of Certified Public Accountants (AICPA). They
must also meet other requirements such as obtaining a state license and may vary from state to state. CMA's are management accountants that pass an
exam prepared and graded by the ICMA and also meet other requirements. Other management accountants can become a CIA and do internal audits and
must complete the IIA exam given by the Institute of Internal Auditors or IIA. Many CPA's work in governmental accounting and they have essentially
the same educational background as accountants in public accounting and management accounting. For academic accounting it is essentially the same
testing and qualifications for CPA's but the accountants work for a two year or four year university. Question 3: * Proficient–level: * The field of
accounting can be divided into two distinct, but sometimes overlapping categories. Describe the similarities and differences between the two categories
and provide examples of the users of each type of data that are the result of the work in each category. Answer: The two categories are financial
accounting and managerial accounting. For financial accounting, information appears in financial statements that are

Accounting Essay
Accounting
Introduction
The financial information is a very important matter in a company success. Allow them to see if they have been successful in the past, in the present
and help them to predict a future performance of you company.
The form, the use and the people involve with the financial and accounting information in a company is going to be developed in this report.
Accounting Knowing the status of your company in every single area will allow you to improve your performance and developed strategies with a
solid background for a successful operation. In the financial department of every company different kind of data and report to provide the information
needed is used. Without that information financial manager,...show more content...
You also can find that several transactions depend on accounting methods, judgments and estimates, so similar events may result in differing
measurements of income at the end of a time period
The balance sheet is a summary of a person or organization's assets, liabilities and Ownership equity on a specific date, such as the end of its
financial year. A balance sheet is often described as a snapshot of a company's financial condition and indicates what the firms owns and how theses
assets are financed in the form of liabilities or ownership interest (Williams, Jan R 2008). Intent to answer how much did the firm make or lose and
what is a measure of its worth? (Block, Hirt 2005).
A balance sheet is often presented alongside one for a different point in time (typically the previous year) for comparison.
One of the limitations of the balance sheet is most of the values are stated on an original cost basis, and that could be a problem when plant, equipment
and inventory may now be worth two or three times the original cost or may require many times the original cost for replacement.
Statement of Cash Flows is the amount of cash being received and spent by a business during a defined period of time, sometimes tied to a specific
project. The Cash Flow is often used to know the status or

Issues In Accounting Essay Example

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