Cost Accounting 101 Practice Test: The Accountant's Role — Flashcards

Accountants review and analyze financial records for individuals and companies, keeping track of income, expenditures, and tax liabilities. 

Accountants may also be involved in: Project planning, Cost analysis, Auditing, Financial decision-making, Tax preparation, Financial reporting, and Financial control. 

Here are some of the main roles or functions of accounting:
Account receivable: Processing incoming payments
Account payable: Making payments and keeping bills paid
Payroll: Ensuring employees receive their salary on time 

Accountants may work in a large company's accounting department or an external accounting firm. They are required to meet state-specific educational and testing requirements and are certified by national professional associations. 

Some types of accountants include:
Management accountants: Work for public and private companies, as well as government agencies. They prepare data for internal use, which helps companies budget and perform better. They may also help choose and manage investments, analyze and manage risk, and create and maintain a company's financial system.
Forensic accountants: Use a combination of accounting and investigation skills to investigate the accuracy of financial information, as well as to help uncover financial crimes such as fraud, embezzlement and money-laundering.