Accountants have important roles in virtually any business, organization or government agency that handles money. Companies that aren’t large enough to hire in-house accounting staff often hire accountants as outside contractors. Accountants also work for financial advisory firms, for banks, or as tax advisers. Based on the statement above, explain the reasons why company need to prepare an account.

Accountants have important roles in virtually any business, organization or government agency that handles money. Companies that aren’t large enough to hire in-house accounting staff often hire accountants as outside contractors. Accountants also work for financial advisory firms, for banks, or as tax advisers. Based on the statement above, explain the reasons why company need to prepare an account.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter1: Role Of Accounting In Society

Section: Chapter Questions

Problem 8Q: Use the internet to research one manufacturing, one retail (or merchandising), and one service...

See similar textbooks

Similar questions

Assume that you are the controller of a business that provides legal services to clients. Suppose that the company has had a tough year, so the revenues have been lagging behind, based on previous years standards. What would you do if your boss (the chief executive officer [CEO] of the company) asked to reclassify a transaction to report loan proceeds of $150,000 as if the cash came from service fee revenue from clients instead. Would following the CEOs advice impact the companys accounting equation? How would reclassifying this one transaction change the outcome of the balance sheet, the income statement, and the statement of retained earnings? Would making this reclassification change the perception that users of the financial statements would have of the companys current year success and future year potential? Write a memo, detailing your willingness (or not) to embrace this suggestion, giving reasons behind your decision. Remember to exercise diplomacy, even if you must dissent from the opinion of a supervisor. Note that the challenge of the assignment is to keep your integrity intact, while also keeping your job, if possible.
Use the internet to research one manufacturing, one retail (or merchandising), and one service business. For each business, describe the following: A. the primary purpose of the entity B. the types of activities that accountants would record (hint: what is the source of the business funding, and what costs might the business have?) C. the types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making process
Why does financial accounting have a positive impact on our society? a. It entails a detailed transaction record necessary for filing taxes with the Internal Revenue Service (IRS).b. It allows investors and creditors to redirect their resources to successful companies and away from unsuccessful companies.c. It prevents competitors from being able to steal the company’s customers.d. It provides a system of useful internal reports for management decision making.
What the responsibilities of the firm of accountants as far as money laundary is concern.
Financial accounting can also be described as a way to a. Tell the financial story of a company.b. Calculate the amount of taxes owed to the government.c. Determine employee satisfaction with their work environment.d. Measure the personal net worth of stockholders.
How one can help the Financial Accounting Department of a multinational company if he/she is hired?
Private accounting as a sub-discipline of accounting, includes: Select one: a. Tax consultancy b. Management accounting c. Management advisory services d. External auditing Person who manages all of a firm's accounting activities. Select one: a. Controller b. Accounting staff c. Payroll manager The basic function of financial accounting is to Select one: a. Record all business transactions b. Interpret financial data c. Assist the management in performing functions effectively d. No correct answer
What is the direct impact on accounting firms who provide financial planning and/or mortgage broking advice and what is the indirect impact on all accountants?
Question 1 In the table below are a number of business needs/activities. Determine the roles and responsibilities of the following members of the accounting and bookkeeping profession by placing an “x” in the box representing who would be responsible for carrying out each task. Note that for some roles there may be more than one correct response. Business Needs/Activities The business’ Accountant The business’ Bookkeeper/Accounts clerk Registered BAS Agent Registered Tax Agent Other Perform petty cash and bank functions Prepare depreciation schedule Audit of the company annual financial reports Accounts receivable and payable functions Provide financial planning advice to the organisation Prepare and lodge ASIC forms Payroll functions Advise on complex IT solutions for the organisation…
1.What types of people or organizations are interested in financial information about a firm, and why are they interested in this information? 2.Why is it important for business records to be separate from the records of the business’s owner or owners? What is the term accountants use to describe this separation of personal and business records? 3.What are the three types of business entities, and how do they differ? 4.What are the major functions or activities performed by accountants in private industry? 5.What is tax planning? 6.What types of services do public accountants provide?
Determining the cost of producing specific products or providing services and analyzing for cost effectiveness. Includes preparing various reports and financial statements and analyzing operating, investing, and financing decisions. The process in which accountants help managers develop a financial plan. A business that buys a product from another business to sell to customers. Telling the results of the financial information. A type of ownership structure in which more than one person owns the business. Specializes in cash, payroll, accounts receivable, accounts payable, inventory, or purchases. A system of gathering financial information about a business and reporting this information to users. Bringing various items of information together to determine a result. A business that makes products to sell. A business that provides a service. Generally supervises the work of…
Which of the following is a mechanical aspect of accounting? Select one: a. Analyzing the transactions preparatory to the recording process b. Designing the accounting system c. Reviewing the effectiveness of the internal control procedures d. Preparation of the financial budget Which of the following statement is not true? Select one: a. A non-accounting graduate may work as a bookkeeper or accountant of a business enterprise. b. A non-CPA may be engaged in public accounting. c. To be a good accountant, one must have mastery of mathematics. d. A non-CPA may be the chief accountant of a business enterprise. The area of accounting that relates to providing audit, tax, and consulting services to clients. Select one: a. General managers b. Public accounting c. Incorporators d. Private accounting