RSM100Y1 Lecture Notes - Gross Profit, Revenue Recognition, Inventory Turnover

20 views4 pages
4 Apr 2012
Accounting: a comprehensive system for collecting, analyzing, and communicating
financial information.
Bookkeeping: recording accounting transactions.
Accounting information system (AIS): an organized procedure for identifying,
measuring, recording, and retaining financial information so that it can be used in
accounting statements and management reports.
Controller: the individual who manages all the firms accounting activities.
Financial and managerial accounting
Financial accounting: the process whereby interested groups are kept informed
about the financial condition of a firm.
Managerial (management) accounting: internal procedures that alert managers
to problems and aid them in planning and decision making.
Professional accountants
Chartered accountants (CA): an individual who has met certain experience and
education requirements and has passed a licensing examination; acts as an
outside accountant for other firms.
Certified general accountants (CGA): an individual who has completed an
education program and passed a national exam; works in private industry or a
CGA firm
Certified management accountants (CMA): an individual who has completed a
university degree, passed a national examination, and completed a strategic
leadership program; works in industry and focuses on internal management
Accounting services
Auditing: an accountants examination of a companys financial records to
determine whether it used proper procedures to prepare its financial reports.
Forensic accountant: an accountant who tracks down hidden funds in business
firms, usually as part of a criminal investigation.
Generally accepted accounting principles (GAAP): standard rules and methods
used by accountants in preparing financial reports.
Tax services
Management consulting services: specialized accounting services to help
managers resolve a variety of problems in finance, production scheduling, and
other areas.
Private accountants: an accountant hired as a salaried employee to deal with a
companys day- to-day accounting needs.
The accounting equation: the most basic toll of accounting, used to balance
the data pertaining to financial transactions: assets=liabilities+ owners equity
Unlock document

This preview shows page 1 of the document.
Unlock all 4 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.