It is a lecture note on the subject of Computerized Accounting. It is only the first part. It is for 1st-year students taking up accountancy or business course/degrees.
COMPUTERIZED ACCOUNTING Bookkeepers
- Responsible for records of
Chapter 1: Accounting Language of business transactions
Business - Supervise work of
accounting clerks
1.1 What is Accounting? - Usually requires 1-2 years of
accounting education +
- It provides financial experience as accounting
information about a business clerk
or non-profit organization. To become a Certified Bookkeeper
(CB):
-Interested parties need 1. Pass national bookkeepers’
financial information to make exam
decisions. 2. Sign code of ethics
3. Submit evidence of at least 2
-It is used to communicate years of full-time bookkeeping
financial information experience or 3,000 hours of
part-time experience.
-It is the process by which
financial information about a Certified Bookkeeper Exam has 4
business is recorded, classified, parts:
summarized, interpreted, and 1. Adjustments & Error
communicated. Corrections >75% to
2. Payroll & Depreciation pass
Financial information answers the ff: 3. Inventory
• How much cash does a 4. Internal Control & Fraud >70% to
business have? Prevention pass
• How much money do
customers owe the business? Accounting Clerks
• What is the cost of - Responsible for payrolls,
merchandise sold? account receivables,
• What is the change in sales accounts payables
volume? - Usually requires 1-2
• How much money is owed to accounting courses and
the suppliers? little or no experience
• What is the profit/loss?
Accountants
Financial information evaluates the - Supervise bookkeepers
firm’s performance. - Prepare financial
statements and reports of
An accounting system is designed to the business
accumulate data, classify data, and - Requires a bachelor’s
summarized it in periodic reports degree
called financial statements.
Public Accounting
1.2 Accounting Careers Public accountants work for
public accounting firms which
Bookkeepers and accountants are provide accounting services for
responsible for keeping records and other companies such as:
providing financial information - Auditing
about the business. - Tax accounting
- Management advisory
, Auditing – review of financial 1.3 Users of Financial Information
statements to assess fairness and
adherence to GAAP Owners & Managers
Their major responsibility is
Tax Accounting – involves: internal control and fraud prevention
- tax compliance –
preparation of tax returns Internal controls are company’s
and audit policies and procedures to:
- tax planning – giving - Safeguard assets
advice to clients how to - Ensure reliability of
reduce their tax liabilities accounting data
- Promote compliance with
Management Advisory Services – management policies and
helping clients improve their laws
information system or business
performance Frauds are intentional or reckless
acts or even misinterpretation that
Big Four – largest public accounting may result in the confiscation of a
firm in the U.S. firm’s assets.
- Deloitte & Touche
- Ernst & Young Suppliers
- KPMG Businesses that supply you
- PricewaterhouseCoopers need to set a credit limit for your firm.
Managerial Accounting Banks
Known as private accounting, Financial information is
it involves working for single business needed so they can decide whether
industries to make the loans or terms of the
loan.
Usual services:
- Establishing accounting Tax Authorities
policies The Internal Revenue Service
- Managing accounting use information to determine tax
system base:
- Preparing financial • Income tax = taxable income
statements • Sales tax = sales income
- Interpreting financial • Property tax = assessed value
information of buildings, equipment,
- Providing financial advice inventory (goods available for
to management sale)
- Preparing tax forms
- Performing tax planning Regulatory Agencies and Investors
services • Federal Communications
- Preparing internal reports Commission – need financial
for management information from radio and tv
stations
Governmental Accounting • Securities and Exchange
Accountants are part of the Commission – from publicly
staff of state or local government owned corporations. They are
units. Government hire accountants responsible for reviewing
to audit financial statements under accounting methods of the
their jurisdiction and to uncover firm.
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