Chapter 1 – Class notes
Accounting is the ‘language of businesses.
Business owned by a single person – sole proprietorship.
Business owned by two or more persons – partnerships.
Entity legally separated from its owners – corporation.
What is the language of accountants?
Journal Entries – accountants can create, read and understand journal entries. A
journal entry is when a company debits and credits two different general ledger
accounts in order to record a transaction.
All transactions are RECORDED in the JOURNALS and then POSTED to their
respective GENERAL LEDGER accounts. JOURNALS AND LEDGERS COMPRISE A
COMPANY’S ACCOUNTING SYSTEM.
Technical accounting skills, interpersonal skills and leaderships skills are skills
required of accounting professionals. Accounting professionals are in high
demand.
Accounting professionals should possess:
Presentation skills
Technical accounting knowledge
Ability to work in teams
Leadership skills
The two main functions of accounting systems are (1) measure business activities
and (2) to communicate those measurements to investors and creditors.
The two main career paths in accounting are referred to as public accounting or
private. Public refers to going to work for accounting firms and private refers to
working in industry, non-profits or government entities.
Accounting is the ‘language of businesses.
Business owned by a single person – sole proprietorship.
Business owned by two or more persons – partnerships.
Entity legally separated from its owners – corporation.
What is the language of accountants?
Journal Entries – accountants can create, read and understand journal entries. A
journal entry is when a company debits and credits two different general ledger
accounts in order to record a transaction.
All transactions are RECORDED in the JOURNALS and then POSTED to their
respective GENERAL LEDGER accounts. JOURNALS AND LEDGERS COMPRISE A
COMPANY’S ACCOUNTING SYSTEM.
Technical accounting skills, interpersonal skills and leaderships skills are skills
required of accounting professionals. Accounting professionals are in high
demand.
Accounting professionals should possess:
Presentation skills
Technical accounting knowledge
Ability to work in teams
Leadership skills
The two main functions of accounting systems are (1) measure business activities
and (2) to communicate those measurements to investors and creditors.
The two main career paths in accounting are referred to as public accounting or
private. Public refers to going to work for accounting firms and private refers to
working in industry, non-profits or government entities.
