Chapter 2: Accounting Flashcards
Why is accounting often called “the language of business”?
It communicates financial information needed to make business decisions.
What does the accounting process includes?
Bookkeeping, identifying, recording and reporting financial information.
What are the two categories that accounting is divided into?
Financial and Managerial.
Financial accounting provides information primarily for?
Entries outside of the organization like government or regulatory bodies.
Managerial accounting generates financial information for?
Use by the management within the organization to help the business run profitably.
Does a medical practice can provide medial services without an accounting system that is effective?
No.
Most medical practices employ a professional accounting firm for many of their financial record keeping and reporting requirements including?
Maintaining payroll records and preparing reports for tax and auditing purposes.
