3.1 Introduction to the role of the accountant in business Flashcards
1
Q
what is the role of an accountant
A
- analyses financial info put together by bookkeeper
- advises company on how to make improvements
2
Q
what is the role of the book keeper
A
- maintains records of all transactions made into and out of the business
- organises the financial information making it easier for accountant
3
Q
what are the 5 functions of an accountant
A
- Recording and reporting
- Forecasting
- Monitoring and Control
- External auditing
- Internal auditing
4
Q
explain what is meant by recording and reporting
A
- prepares financial reports about the past e.g sales, profit, tax, VAT returns ect
5
Q
explain what is meant by forecasting
A
- preparing financial budgets and making predictions on sales based on the past
- identify if any changes need to take place
6
Q
explain what is meant by monitoring and control
A
- comparing current budgets to the forecasts
- they take corrective actions if predictions were off target
7
Q
explain what is meant by external auditing
A
checking with other professional accountants if the data is accurate and follow the rules
8
Q
explain what is meant by internal auditing
A
checking with people in the organisation if the data is accurate and follow the rules
9
Q
what is the role of a management accountant
A
they prepare information for use within the business (internal use)
10
Q
what is the role of a financial accountant
A
prepare financial reports for the business to be published (external use)
