Basic Accounting Terms And Concepts (3)

AccountingMany accounting practices have been simplified with the help of accounting computer-based software. This shorter equation allows one to simply replace the letters with figures from an accounting problem. While the above problem is rather basic, it lays the foundation for using the accounting equation. Therefore, always think in the terms described to help simplify difficult accounting problems. Though the expanded definition of the accounting equation tends to vary amongst accounting authors the basic equation is always the same. The final version of the equation may also be referred to as the Balance Sheet equation as it represents the information presented on that financial statement.

A business established as a sole proprietor will label equity as Owners Equity whereas a public company is more likely to refer to this part of the accounting equation as Shareholders Equity. It is one of three major financial reports generated as part of the accounting function. The accounting industry is a professional service industry that provides accounting services combined with tax services to individuals, families, and businesses.

Financial and managerial accounting is the process of preparing, maintaining, and communicating financial information for the use by managers, investors, and even by banks or lenders. Personal accounting involves tax planning, retirement, and or investment planning for individuals and for families. The accounting industry is growing and remains steady because of the needs and demands. Dear Drebit was created by Rea and Associates, an Ohio certified public accounting Firm.

The accounting industry is a hot industry and great for a person to gain employment in for many different reasons. Out of all of the hot industries to choose from, accounting is the hottest mainly because of the variety, growth, and diversity it can provide. Accounting is also a different industry because it is involves math skills, problem solving skills, along with high levels of accuracy and professionalism. Many people think accounting is boring, but really it is very exciting and is set apart from other industries by the five reasons listed below.

Accounting was first established during 7500 BC, by cultures and civilizations accounting for their tokens, agriculture, and any thing used for the payment to purchase goods and services. Now certain accounting is required by the Internal Revenue Service from every person and business at least once per year, known as taxes that must be paid. The need and demand for both accounting and accountants remains steady and is even increasing for certified accountants. The accounting industry offers an increasing annual salary amount which is due to promotions, longevity, and seniority that is gained.Accounting