Individuals – to manage
bank accounts, evaluate job prospects, make
investments, and decisions.
Businesses – to set goals,
evaluate their progress, decide which building
or equipment to purchase.
Investors and Creditors –
to decide whether to start a new venture, evaluate
what income they expect on their investment,
analyze a company’s financial statement.
B. The Accounting Profession
Public Accountants
Serve the general public
Work includes auditing, income
tax planning and preparation, management
consulting
Public Accountants are about
10% of all accountants.
Private Accountants
Work for a single business.
Examples are restaurants,
charitable organizations, educational institutions,
and government agencies
C. Accounting Organizations
and Designations
American Institute of Certified
Public Accountants (AICPA)
The national professional
organization of CPA’s.
AICPA prepares and grades
the CPA examination.
Publishes monthly journal,
the Journal of Accountancy.
Financial Accounting Standards
Board (FASB)
Formulates generally accepted
accounting principals (GAAP).
These principles establish
accounting guidelines.
Institute of Management
Accountants (IMA)
Formerly the National Association
of Accountants (NAA). Focus on the practice
of management accounting.
