Business Exam Two Notes

Business Exam Two Notes - Business Exam Two Notes...

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Business Exam Two Notes Accounting - The recording measurement, and interpretation of financial information Accountants - Public Accountants An individual who has been state certified to provide accounting services ranging from the preparation of financial records and the filing of tax returns to complex audits of corporate financial records - Private Accountants Accountants employed by large corporations, government agencies, and other organizations to prepare and analyze their financial statements Private accountants can become certified management accountants , by passing rigorous examination by the Institute of Management Accountants Certified Management Accountants are private accountants who after rigorous examination, are certified by the National Association of Accountants and who have some managerial responsibility Accounting or Bookkeeping Bookkeeping is typically limited to the routine, day to day recording of business transactions Bookkeepers are responsible for obtaining and recording the information that accountants require to analyze a firms financial position
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Additional training allows accountants not only to record financial information, but to understand, interpret, and even develop the sophisticated accounting systems necessary to classify and analyze complex financial information - Uses of Accounting Information Internal Uses Managerial accounting refers to the internal use of accounting statements by managers in planning and directing the organizations activities Cash flow which is the movement of money through an organization over daily, weekly, monthly, or yearly basis Not at all unusual for highly successful and rapidly growing companies to struggle to make payments to employees, suppliers, and lenders because of an inadequate cash flow Managerial accountants also help to prepare an organizations budget, the internal financial plan that forecasts expenses and income over a set period of time The budget breakdowns the inflow and outflow of cash Expected operating expenses such as wages, material costs and taxes Operating revenues like payments from customers
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Business Exam Two Notes - Business Exam Two Notes...

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