COMPREHENSION ABOUT ACCOUNTING

From module page 31-32

1. Accounting is called the “Language of Business” because of its ability to communicate financial information about an organization.
2. In order to achieve a standardized accounting system, the accounting process follows accounting principles and rules.
3. Revenues are incoming money and expenditures are out going money.
4. The balance sheet and the income statement are two common financial statements. They are different, the first shows the financial position of a company at one point of time, while the seconds shows the financial performances of a company over a period of time.
5. The information contained in financial statements might be useful to creditors. It helps them to find out whether the company will able to repaid the credit on time or not.
6. In The United States, accountants are classified as public, private, and governmental
7. Public accountant provide accounting services such as auditing and tax computation to companies and individuals.
8. A CPA is a Certified Public Accountant. Yes, we had formerly Faculty of Economics graduates of 5 elite universities got “Drs, ….. AK” degree.
9. Accounting-public because accountant has good knowledge about accounting principles and rules.
10. Some company financial decision makings might be based on accounting information. For example the management went to expend its business to build a bigger factory to introduce new variety of goods.