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Accounting
Definition
The definition of accounting is to provide numerical information in a way that can allow for appropriate reporting and sound decision making. Financial accounting is the preparation of the firm's financial reports that provide information to investors, creditors, and tax authorities. Managerial accounting does not have to confirm to rules like GAAP (Generally Accepted Accounting Principles) and is used for internal decision making within the firm.
Using the term Accounting :
Coca Cola has its annual audit performed by an outside auditor such as KPMG. KPMG will also help prepare the annual report to shareholders. This is a form of financial accounting.
Pay Special Attention To :
There are aspects of financial accounting which allow leeway to managers and this can lead to accounting risk and earnings manipulation. You must learn how to pay attention to the footnotes of an annual report to see if you believe that the company's accounting reports fairly reflect the true picture of the company.
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Related terms
Audit , Accounting Risk , Back Office Operations
'Accounting' appears in these other terms:
Accounting Risk
'Accounting' appears in the definitions of these other terms:
Accounting Risk Audit Back Office Operations Earnings Manipulation EBITDA Fund Administration
