Accounting Consists Of Three Major Purposes Essay examples

1194 Words May 30th, 2016 5 Pages
Accounting consists of three major purposes—to identify, record, and communicate the economic events and financial transactions of an organization to its interested users, in order to provide a company with the information necessary to keep a business financially stable. When identifying economic events, a company must select those that are relevant to its business. In recording these events, transactions must be kept in a systematic, and chronological order, measured in monetary value. In order for companies to communicate information, an accountant must be able to analyze and interpret the information at hand, which involves explaining its usage, meaning, and restrictions of the reported data. Since accounting covers a broad spectrum of financial activities, there is also a wide variety of jobs and careers that satisfy the different parts and types of the accounting process. A tax accountant is a type of accountant that is involved in the preparation of taxes. A bookkeeper is a type of accountant that maintains financial records and monitors accounts. A forensic accountant is a certified public accountant that applies their investigative skills to detect fraud or criminal activity. A tax accountant’s primary function is to assist their clients in regard to their financial and income tax statements. A tax accountant may work for both public and private businesses, corporations, individuals, and sometimes government agencies. They prepare and file financial and income…

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