Accounting
Accounting: process of systematically collecting, analyzing, and reporting financial information.Private accountant: employed by a organizationPrivate Accountants provide the following services:General accounting: recording business transactions and preparing financial statementsBudgeting: Develop budgets for sales and operating expenses.Cost Accounting: Determining the cost of producing specific products or services.Tax Accounting: Planning tax strategy and preparing tax returns for the firm.Public Accountant: an accountant whose services may be hired on a fee basis by individuals or firms.Chartered accountant (CA) or Certified general accountant (CGA), Certified management accountant (CMA): an individual who has met requirements for accounting education and experience and has passed a set of accounting examinations from their respective professional organization.Assets: the resources that the firm ownsLiabilities: firms debts and obligation- what it owes to othersOwners Equity: the difference between a firms assets and its liabilitiesAccounting Equation: the basis for the accounting process: assets = liabilities + owners' equity
Balance Sheet: summary of the dollar amounts for a firm's assets, liabilities, and owners' equity accounts at a particular time. Depreciation: process of apportioning the cost of a fixed asset over the period during which it will be used. Intangible assets: do not exist physically but have a value based on legal rights or advantages that they confer on a firm. Cost of Goods sold: sold during the accounting period; equal to beginning inventory plus net purchases less ending inventory. Current Ratio = current assets current liabilitiesacid-test ratio = current assets - inventory current liabilitiesaccounts receivable turnover = net sales A/RDebts-to-assets ratio = total liabilities Total assetsDebt-to-equity ratio = total liabilities owners' equityBibliography heros. Prepaid expenses: assets that have been paid for in advance, but not been used. Statement of cash flows: illustrates the effect on cash of the operating, investing, and financing activities of a company for an accounting period. Accounts Payable: short-term obligations that arise as a result of making credit purchases. Financial ratio: a number that shows the relationship between two elements of a firms financial statementsNet profit margin = Net income after taxes Net salesReturn on equity = net income after taxes Owners' equityEarnings per share = Net income after taxes Common-stock shares OutstandingWorking Capital: difference between current assets and current liabilities. Notes Payable: Obligations that have been secured with promissory notes. Gross sales: the total dollar amount of all goods and services sold during the accounting period. Fixed assets: assets that will be held or used for a period longer than one year. Net Sales: the actual dollar amount received by a firm for the goods and services it has sold, after adjustments for returns, allowances, and discounts. Current assets: cash and other assets can be converted into cash or that will be used in a year or less. Cost of goods sold = beginning + net - ending Inventory purchases inventoryGross profit on sales: net sales - cost of goods soldNet income: profit earned (or the loss suffered) by a firm during an accounting period, after all expenses have been deducted from revenue.
Common topics in this essay:
Net Sales,
Balance Sheet,
Accounting Equation,
CGA Certified,
Current Ratio,
A/R Debts-to-assets,
Income Statement,
,
Public Accountant,
Private Accountants,
accounting period,
= net,
current assets,
net sales,
owners' equity,
current liabilities,
net income,
ratio =,
net income taxes,
cost sold,
income taxes,
= net income,
= total liabilities,
sold accounting period,
liabilities debts repaid,
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Acceptance Essays
