General Business 101-00128 Oct 2014
Accounting is the recording, measurement, and interpretation of financial information (Business 286). This financial information is used to evaluate the organization’s operations. To carry out these interpretations of financial information a public or private accountant is able to do this. To become a public accountant you must earn your CPA (certified public accountant) by passing a test and means you are certified by the state in which you provide accounting services where you reside. This means that you are, as a certified public accountant, able to express, officially, an unbiased opinion regarding the accuracy of the client’s financial statements (Business 286). This ranges from preparation of financial records to tax returns to complex audits of corporation financial records. You also have to continue taking accounting courses to keep your certificate. Private accountants can also be CPAs and may become certified management accountants (CMAs). To earn your CMA you must pass a rigorous test given by Institute of Management Accountants. There are internal and external uses for accounting. Managerial accounting is used for internal accounting and refers to the use of accounting statements to help managers in planning, and directing the organization’s activities. Micron uses internal accountants to help make sure all the financial statements are prepared correctly. Micron also likes their accountants to be CPAs. Managerial accountants also help with an organization’s budget, an internal financial plan that predicts the expenses and income over a set period of time. Because of Managerial accountants Micron was able to relies that their factory in Boise is not producing enough income to continue running. For external use managers use accounting statements to report the business to outsides these reports become the base for he information provided in the official corporate...
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