The Accounting Industry Vocabulary

process of retrieving, recording, storing and summarizing financial transactions for a business

• Accounting

• Bookkeeping

process of recording daily business transactions; only one part of the accounting process

• Accounting

• Bookkeeping

person who has an interest in a company

• Stakeholder

• Chairman

• Shareholder

individuals who own part of a company through stock ownership

• Stakeholder

• Chairman

• Shareholder

records and analyzes financial information for internal use by managers

• Managerial Accounting

• Governmental Accounting

• Tax Accountant

maintains and examines records of government agencies

• Managerial Accounting

• Governmental Accounting

• Tax Accountant

common set of accounting rules and procedures; needed in accounting to maintain accuracy and consistency of financial reports

• Generally Accepted Accounting Principles (GAAP)

• Reliability Principle

• Disclosure Principle

• Matching Principle

specializes in examining accounting transactions for law enforcement

• Forensic Accountant

• Tax Accountant

• Certified Public Accountant

actual cost of an item needs to be stated, not its current value

• Cost Principle

• Reliability Principle

• Disclosure Principle

• Matching Principle

accountants must only record information which can be verified

• Cost Principle

• Reliability Principle

• Disclosure Principle

• Matching Principle