CHAPTER 1 Accounting 801

Chapter 1 – Accounting as a Career What is Accounting? Planning, keeping, analyzing, and interpreting financial records.

Chapter 1 – Accounting as a Career Job Opportunities in Accounting 1. Accountant Persons who plan, summarize, analyze, and interpret accounting information. 2. Bookkeeper Persons who do general accounting work plus some summarizing and analyzing.

Chapter 1 – Accounting as a Career Job Opportunities in Accounting 3. Accounting Clerk Persons who record, sort, and file accounting information. 4. General Office Clerks Persons who do general kinds of office tasks, including some accounting tasks.

Chapter 1 – Accounting as a Career 1. Accountant A business selling accounting service to the general public is referred to as a public accounting firm. Some accountants known as private accountants are employed by a single business.

Chapter 1 – Accounting as a Career 2. Bookkeepers In small to medium sized businesses, bookkeepers may help owners and managers interpret accounting information. Many business require bookkeepers to have filing and typing skills

Chapter 1 – Accounting as a Career 3. Accounting Clerks Work primarily on day to day accounting tasks that highly trained accountants may not do. Record, sort, and file accounting information.

Chapter 1 – Accounting as a Career 4. General Office Clerk Jobs which involve some form of accounting.  A secretary may work on a small cash fund  A Typist may file accounting records.

Chapter 1 – Accounting as a Career Accounting Career Ladder AccountantsBookkeepers Accounting Clerks General Office Clerks Post-Secondary Accounting Major Accounting Study in addition to high School High School plus additional Training High School

Chapter 1 – Accounting as a Career A look at accounting jobs in the Atlantic Provinces  Career Beacon Career Beacon

Chapter 1 – Accounting as a Career Accounting Concepts and Principles Published by the Canadian Institute of Chartered Accountants (CICA) The handbook contains what is referred to as Generally Accepted Accounting Principles (GAAP)

Chapter 1 – Accounting as a Career Generally Accepted Accounting Principles (GAAP) Business Entity  A business’ financial information is recorded and reported separately from the owner’s personal financial information. Going Concern  Financial Statements are prepared with the expectation that a business will remain in operation indefinetely.

Chapter 1 – Accounting as a Career Generally Accepted Accounting Principles (GAAP) Accounting Period Cycle  Changes in financial information are reported for a specific period of time in the form of financial statements. Objective Evidence  Each transaction is described by a business document that proves the transaction did occur.

Chapter 1 – Accounting as a Career Generally Accepted Accounting Principles (GAAP) Unit of Measurement  All business transactions are recorded in a common unit of measurement – the dollar Realization of Revenue  Revenue from business transactions is recorded at the time goods or services are sold.

Chapter 1 – Accounting as a Career Generally Accepted Accounting Principles (GAAP) Matching Expenses with Revenue  Revenue from business activities and expenses associated with earning that revenue are recorded in the same accounting period. Historical Cost  The actual amount paid or received is the amount recorded in accounting records.

Chapter 1 – Accounting as a Career Generally Accepted Accounting Principles (GAAP) Adequate Disclosure  Financial statements should contain all information necessary for a reader to understand a business’ financial condition. Consistent Reporting  In the preparation of financial statements, the same accounting concepts are applied in the same way in each accounting period.

Chapter 1 – Accounting as a Career Accounting Records Accounting Accountants Bookkeepers Accounting Clerks General Office Clerks Public Accounting Firm Entry-level Jobs GAAP