Accountants

Definition

Accountants are professionals responsible for preparing and examining financial records. They ensure that financial statements comply with laws and regulations, providing accurate financial information to stakeholders.

5 Must Know Facts For Your Next Test

1. Accountants play a critical role in maintaining the integrity of financial information.
2. They must adhere to Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).
3. The main branches of accounting include financial accounting and managerial accounting.
4. Accountants help organizations make informed business decisions by analyzing and reporting financial data.
5. Ethics and confidentiality are crucial aspects of an accountant's professional responsibilities.

Review Questions

• What are the primary responsibilities of an accountant?
• Name two major accounting principles or standards that accountants must follow.
• How do accountants contribute to business decision-making?

Related terms

Financial Accounting:

The field of accounting focused on the preparation of financial statements for external users.

Managerial Accounting:

The branch of accounting that provides internal reports to help manage business operations.

GAAP:

Generally Accepted Accounting Principles, a set of rules used by accountants in the U.S. for preparing financial statements.