Key Terms
People inside the organization
Managers, employees, executives. Use accounting to confirm past results and adjust future activities.
People outside the organization
Investors, lenders, the IRS, financial analysts, government auditors. Use accounting to evaluate performance and make de
Feedback value
What accounting does best. Reliable record of what already happened.
Example
A bank reviewing three years of financial statements to decide whether to approve a loan is using historical data as a p
Primary purpose
Serve a particular community interest or need. Mission- based, not profit-based.
Examples
Food banks, community foundations, colleges and universities. Typically do not pay income taxes but still file informati
Stakeholder
Person or group that relies on financial information to make decisions.
Includes
Stockholders, creditors, lenders, governmental agencies, customers, managers, employees, community members.
Generally Accepted Accounting Principles
The common set of rules, standards, and procedures that publicly traded companies must follow when preparing financial s
International Financial Reporting Standards
Used in 120+ countries. The US has not adopted IFRS but works closely with IASB to align standards.
Traditional
Goal-oriented, problem solver, organized, analytical, detail-oriented, strong interpersonal skills, time management.
Emerging (per ACCA and IMA research)
Entrepreneurship, curiosity, creativity, strategic thinking.
Entry-level
Bachelor's degree minimum. CPA license: 150 credit hours required in most states (bachelor's degree is typically 120-130
CPA EXAM PARTS
Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), Regul
CMA EXAM PARTS
Part 1 - Financial Reporting, Planning, Performance, and Control; Part 2 - Financial Decision-Making.