|Editor's Picks Opportunities|
Home > Article
Talk Like An Accountant
Do accountants speak in their own jargon? You bet they do!
Auditing is a formal review of a corporation's or
individual's financial records. Expenses and income are
tallied, providing a general picture of a financial
situation. The IRS audits individuals and corporations on a
random basis to check whether the information reported on tax
returns matches records. Accountants carry out the same
procedure, but do it more regularly and report their findings
to the client so that and discrepancies can be taken care of
before a corporation finds itself in hot water with the
The four largest accounting firms in the United States -- the Big Four -- are Deliotte & Touche, Ernst & Young, KPMG, and Pricewaterhouse Coopers. Securing an internship or job at one of these highly competitive firms is worth the fight, because even a few years on the inside of them will make any resume shine. Each of the Big Four has annual revenues in the tens of billions as well as employees numbering in the tens of thousands. These firms are the most prestigious employers in the industry and develop impressive, transferable skills and use top technologies. They are the leaders in the accounting industry.
PCAOB (Public Company Accounting Oversight Board)
This committee was created in 2002 along with new accounting
legislation to monitor auditors of public companies and
protect against fraud.
Revenue is the total income produced by a corporation or individual before expenses and taxes are subtracted. Once these deductions are made, the money left over is called profit.Accounting System
An accounting system is the combination of manual and computerized tools and methods that allow accountants to model a client's finances. By creating a model of money flow, accountants are able to project how a client's financial situation would be affected if expenditures or income are altered.
A balance sheet is a snapshot of an individual's or corporation's financial condition at a given time. After tallying assets and liabilities, the difference between the two reveals the net worth at a given time.
CPA (Certified Public Accountant)
Certified Public Accountants are those who have passed the CPA exam and fulfilled further requirements that vary according to jurisdiction but usually include some formal education and real-world experience . Once certified, a public accountant can open his or her own firm and can sign off on his or her own work.
CIA (Certified Internal Auditor) and CMA (Certified Management Accountant)
A Certified Internal Auditor or Certified Management Accountant is an accountant who has received a bachelors degree in accounting or a related field, passed a four-part exam, and accumulated at least two years of work experience. General requirements for becoming a certified CPA, CIA or CMA are very similar.
Generally Accepted Accounting Principals are rules and regulations imposed on accountants to ensure a level of consistency in accounting practices. They are determined by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB) and are learned from numerous text and reference books available on the market.
Fortune 500 company
Each year, Fortune magazine published a list of the 500 largest companies in the United States, ranked according to revenue. Revenue is calculated using public data, so all of the companies on the list are publicly owned.
More Related Articles
Managing Your Time
If you're like other accounting and finance managers who oversee multiple people while trying to accomplish your own tasks, you may struggle to get it all done. While managing your time can be a challenge, there are a number of techniques that can help you. Here are a few of them:
New Salary Guide Identifies Bright Spots Amid Tough Economy
Even in an increasingly uncertain economy, accounting and finance are core business functions vital to a company's ability to navigate difficult periods. As a result, demand remains steady for top accounting and finance expertise in key areas, according to the 2009 Salary Guide from Robert Half International.
Google Web Search
Didn't see what you were looking for?
powered by Google