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Assignment #1- the Role of Accounting on Business and Our Society

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Assignment #1- The Role of Accounting on Business and Our Society
ACC 100
March 2, 2014

Financial Statements
There are three financial statements that are used in the accounting process; Income statement, Statement of Owners Equity and Balance Sheet. The purpose of the income statement is to report a firm’s earnings over a period of time which is usually their previous fiscal year. Statement of owners’ equity reports the changes of the company’s transactions for a particular time period, all changes and edits can be reviewed in a detailed view. The balance sheet list the three major accounting equation within a detailed time period; assets, liabilities and owner’s equity. The most effective way to communicate the financial stability of a company is through the balance sheet summary. The balance sheet allows the company to keep a steady track of their spending and what is outstanding on their books; this can eliminate financial surprises and allows the company to make preparations to recover in a positive way.
Major Functions of an Accountant and Certified Public Accountant
An accountant and certified public accountant plays a vital role to a company’s financial success, their main duty is to monitor and keep track of the company’s financial records. The role of an accountant is slightly different than a certified public accountant, an accountant for a corporation will manage the finances, purchasing and business transactions with outside firms. They are the financial gatekeepers for their organization; they have the ability to prevent harm by having a strong grasp of their financials. A certified public accountant is an accountant that has a special accreditation earned by passing the certified public accountant examination. A CPA inspects the financial statements of a company and presents their current financial state. This is determined through careful...

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