Accounting Speech

Topics: Generally Accepted Accounting Principles, Balance sheet, Income statement Pages: 3 (753 words) Published: August 31, 2011
Accounting Speech
By Jill A. DeBonis
American InterContinental University Online

In this essay I hope to explain the more common terms used in accounting. A small biography of why I love accounting. And how technology (computers) has helped create a much easier way of life for accountants.  Accounting Speech

What is the definition of an accountant?
Someone who solves a problem you did not know you had in a way you don't understand (n.a. 2011). Does that sound about right for a definition for an accountant? Well there is an explanation for everything an accountant does, and some of it may not make sense to some of us, but to an accountant it all makes perfect sense.

To begin with let us start with a few accounting terms. There are four assumption terms. The first term will be the meaning of the word accounting, the process of identifying, measuring, and communicating economic information to permit informed judgments and decisions (Godwin, Alderman, 2010). This will bring us to assumptions used by accountants; economic entity assumption means accountants can separate business financials from personal financials (Godwin, Alderman, 2010). The next assumption is a time period assumptions. Accountants use this assumption for economic information to become meaningful over short periods of time (Godwin, Alderman, 2010). Monetary assumptions are used for communicating economic activity (Godwin, Alderman, 2010). The last assumption is going concern assumption; this assumption is used to see that a company will operate on the foreseeable future (Godwin, Alderman, 2010).

An accountant needs to understand what revenue, revenue recognition principle, an expense, and matching principles are (Godwin, Alderman, 2010). Revenue is increasing recourses from the sale of goods or provision of services (Godwin, Alderman, 2010). The revenue recognition principle means revenue should be recorded when it is earned (Godwin, Alderman, 2010). An Expense is when...
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