Some Basic Knowledge About Accounting Essay Example
ACCOUNTING
Some basic knowledge about accounting: - Accouting is a study of the concepts and techniques used in such reporting. - Accounting information serve for each entity with particular task: Taxing authorities, stockholders, workers and potential employess, … - Definition of accouting: the art of recording, classifying, summarizing, interpreting.
1. Fields of accounting ❖ Based on recording methods:
Accounting information is deal with in 2 systems:
+ single entry book – keeping: only debit or credit
+ double entry book – keeping: both debit and credit. ❖ Based on fields of accounting: a. Public accounting (CPA & its services):
It is a professional service rendered by a Certified Public Accountant and his employees to the public for fee.
Most common services: auditing, management advisory services, tax services - Auditing: the principal service. In audting, including :
+ Firstly, carefully examines, tests, and checks the accuracy of the reports and the financial data form which these reports were taken.
+ Then, expresses auditor’s opinion on the fairness of the audited reports. - Management advisory services: including:
+ designing, installing, improving of the firm’s general accouting system and other system deemed necessary (thấy rằng cần thiết) for controlling and distributing manufacturing costs
+ giving advice on financial planning, budgeting, forecasting, and inventory control. - Tax services: including preparation and filing of income tax returns.
Note that:
+ If CPA firm appointed CPA go to company to audit: the objective of CPA is that checking GAAP is followed without recommend.
+ If company hire CPA to audit their company, the purpose of audting of CPA is that: ▪ Checker ▪ Improvement, help this company to do accounting system. b. Private accounting ▪ It is an accounting job done in private business enterprises.
Some basic knowledge about accounting: - Accouting is a study of the concepts and techniques used in such reporting. - Accounting information serve for each entity with particular task: Taxing authorities, stockholders, workers and potential employess, … - Definition of accouting: the art of recording, classifying, summarizing, interpreting.
1. Fields of accounting ❖ Based on recording methods:
Accounting information is deal with in 2 systems:
+ single entry book – keeping: only debit or credit
+ double entry book – keeping: both debit and credit. ❖ Based on fields of accounting: a. Public accounting (CPA & its services):
It is a professional service rendered by a Certified Public Accountant and his employees to the public for fee.
Most common services: auditing, management advisory services, tax services - Auditing: the principal service. In audting, including :
+ Firstly, carefully examines, tests, and checks the accuracy of the reports and the financial data form which these reports were taken.
+ Then, expresses auditor’s opinion on the fairness of the audited reports. - Management advisory services: including:
+ designing, installing, improving of the firm’s general accouting system and other system deemed necessary (thấy rằng cần thiết) for controlling and distributing manufacturing costs
+ giving advice on financial planning, budgeting, forecasting, and inventory control. - Tax services: including preparation and filing of income tax returns.
Note that:
+ If CPA firm appointed CPA go to company to audit: the objective of CPA is that checking GAAP is followed without recommend.
+ If company hire CPA to audit their company, the purpose of audting of CPA is that: ▪ Checker ▪ Improvement, help this company to do accounting system. b. Private accounting ▪ It is an accounting job done in private business enterprises.