1. Users of Accounting Information
Accounting is a service activity that provides information to help internal and external users make decisions.
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External Users
External users of accounting information are not involved in running the organization.
They include:
Lenders
Shareholders
Governments
Consumer groups
External auditors
Customers
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External Reporting
Reports for external users are usually in the form of financial statements.
The information in the statements needs to be relevant and faithfully represented.
Generally accepted accounting principles (GAAP)are the underlying concepts that make up acceptable accounting practices.
GAAP are important in increasing the usefulness of financial statements to users.
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Internal users
Internal users are involved in managing and operating an organization.
Accounting provides information to these users to help them improve the efficiency and effectiveness of the organization.
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5. Typical Questions Asked by Internal Users
What are the manufacturing expenses per unit of product?
What is the most profitable mix of services?
What level of revenues is necessary to show net income?
Which service activities are most profitable?
Which expenses change with a change in revenue?
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6. Accounting Opportunities
Broad fields of accounting include:
Financial accounting
Managerial accounting
Taxation
Accounting-related fields
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7. Accounting Opportunities
Accountants may work as:
Private accountants
Public accountants
Government accountants
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8. Professional Certification
Professional certifications in Canada:
Certified General Accountant (CGA)
Certified Management Accountant (CMA)
Chartered Accountant (CA)
Chartered Professional Accountant (CPA)
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