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Definition
| financial info about a business/organization- language of business--how it is recorded |
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| gather information about a firms financial affairs, classify the data, and summarize it often. |
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| periodic reports -owners/managers get a lot of info from these |
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work for public accounting firms
-do accounting for other businesses-
3 services: auditing, tax accounting, & management advisory services |
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| certified public accountants [cpa] |
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Definition
| certain # of college credit in accounting, good character, pass the Uniform CPA Examination, fulfill experience requirements of the state |
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Definition
| review of financial statements to look over their fairness & adherence of generally accepted accounting principles |
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| tax compliance[preparation of tax returns and the audit of those returns] and tax planning[giving advice to clients on how to structure their financial affairs in order to reduce tax liability] |
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| management advisory services |
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Definition
| helps clients improve their information systems or business performance |
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Definition
aka private accounting- works for only ONE business
-helps you understand financial statements
-establish accounting policies
-prepare taxes
-prepare internal reports for CEO |
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Definition
work under form of government [state, federal or local]-prepare financial reports and keep financial records
-SEC, IRS, FBI, Homeland Security |
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Term
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Definition
| one to two accounting courses and little to no experience |
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Definition
| one to two years of accounting education and accounting clerk experience |
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Term
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Definition
| bachelor's degree usually or two year college degree |
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Definition
| tax compliance (preparation of tax returns and auditing those returns - tax planning (giving advice to clients to reduce their tax liability) (tax write offs) |
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Definition
-assess the firm's ability to pay its bills
-set a credit limit for the firm[how much you can charge] |
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Definition
| to determine tax base for: income, sales and property taxes |
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| regulatory agencies and investors |
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Definition
SEC is the federal agency that oversees the financial info of public corps.
public corps-stock is traded in stock exchanges and over the counter markets |
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Term
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Definition
the act led to a major change in the regulatory environment
designed to crack down on corporate fraud and corruption |
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Definition
use financial info to determine economic health of your business
-determine likelihood that firm will remain in business |
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Definition
| use financial info to negotiate wages and benefits |
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| one owner -responsible for debts or taxes |
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| two or more owners- all responsible for debts and taxes of the business |
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Term
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Definition
| investors own corporation-publicly or privately owned business-has legal right to do business and own property in its own name-stockholders not responsible for the debts or taxes |
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Term
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| in the form of stock certificates, represents the ownership of the corporation |
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Term
| what is the separate entity assumption? |
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Definition
| personal records separate from business records |
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Term
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Definition
generally accepted accounting principles-rules and regulation that ppl in the accounting profession have to follow-development of GAAP on pg. 14 -FASB board
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Term
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Definition
| independent accountant's review of firm's financial statements |
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