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The practice or profession of maintaining financial records, noting expenses or revenue, and determining how much one owes or is owed. Accounting seeks to assure that every individual or company pays or is paid the correct amount. There are several different types of accounting, each of which reports revenue and earnings differently from other methods. Two major accounting methods are accrual accounting and cash accounting. Accrual accounting recognizes revenue and matches it with the expenses that generated that revenue. Cash accounting, on the other hand, recognizes revenue and expenses in the order in which they are received or spent.

Accounting is important in personal finance as well. One must maintain accurate records to ensure that enough money remains to pay one's bills. Likewise, accounting is necessary to pay personal or corporate taxes in the correct amount. See also: CPA, LIFO, FIFO.
Accountingclick for a larger image
Fig. 3 Accounting. A typical data-recording sequence.


the process of recording a firm's financial transactions in appropriate book-keeping records and of summarizing this information in the form of accounting reports, using acknowledged methods and conventions. FINANCIAL ACCOUNTING is geared to the preparation of summary reports for the shareholders or owners of the business, while MANAGEMENT ACCOUNTING is geared to the preparation of more detailed reports for managers. Fig. 3 shows a typical data-recording sequence.
References in periodicals archive ?
Their constituency, once confined to the IRS, now includes the Financial Accounting Standards Board (FASB), PCAOB, SEC, and investors and creditors.
The goal of most accounting doctoral students is a career in academia, examining how accounting information is gathered, organized and used by individuals and markets.
In a survey of 200 finance and accounting executives, II Respondents confirmed that timely, accurate account reconciliations have become a critical internal control practice in the wake of Sarbanes-Oxley.
If FASB is saying that accounting reform is needed because analysts and investors are viewing pension and OPEB plans the wrong way, then this will create a huge market disturbance as analysts and investors adjust to the new paradigm.
If markets were liquid and transparent for all assets and liabilities, fair value accounting clearly would be reliable information useful in the decisionmaking process.
Insurers were concerned particularly with the fair-value method of accounting advocated by the IASB's proposed standard for treating financial instruments--a set of rules known as IAS 39.
Accordingly, the determination whether the IAS are too "investor orientated" can only be determined through a comprehensive review of the IAS, in the context of either: (a) tax accounting rules in each Member State, or (b) a common set of tax accounting rules, and corresponding underlying taxation principles.
held that an accounting firm could not be sued for ordinary negligence by a third-party who lacks privity with the accounting firm.
And CPA Harvey Zimmermann, an executive in residence at the University of North Texas in Denton, sees teaching as a way to give something back to the school that prepared him for a 30-year career in accounting that culminated in his being named partner-in-charge of KPMG's Dallas/Fort Worth energy practice.
This session will explore continuing implementation issues, including valuation and tax accounting, as well as plans for process sustainability for the future.
Two primary factors are causing the faculty shortage: first, fewer doctoral students are pursuing degrees in accounting than ever before; second, many accounting professors are retiring.

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