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Discuss: Certifications, revenue methods, bonds, insider

7. Identify three areas of service provided by public accountants. What is the most common professional certification held by public accountants? What are the general requirements for attaining the certification.

8. What are the common duties performed by private accountants. What two types of professional certifications, other than CPA, are held by private accountants?

11. How do the percent of revenue method and the percent of receivables method to estimate uncollectible accounts expense differ?

12. What are two ways in which estimating uncollectible accounts improves the accuracy of the financial statements?

15. What special features make callable bonds attractive to an issuing corporation. Why would some bonds be classified as "secured bonds"? What is meant by bonds being issued at premium and at a discount.

16. Answer and discuss the following in at least a paragraph each:

a. Why does insider trading breach that duty?
b. In regards to the Martha Stewart case. Do you believe that shareholder interests were jeopardized? Why or why not?
c. How has this case affected society? How has this case affected the business community? Cite at least 2 outside sources to support your answers.

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7. Identify three areas of service provided by public accountants. What is the most common professional certification held by public accountants? What are the general requirements for attaining the certification.

Public accounting three service areas are audit (assurance services), tax, and consulting. The most common certification is CPA, certified public accountant, which enables them to sign audit reports. The general requirements vary somewhat from state to state but there is a national exam that must be passed, you need a college degree (any major), you need to have taken a certain number of upper-level accounting courses and non-accounting business courses, and you usually need one-to-two years of experience under a CPA supervisor.

8. What are the common duties performed by private accountants. What two types of professional certifications, other than CPA, are held by private accountants?

Private accountants maintain the general ledger, recording all the business activity in accordance with GAAP. They complete the adjusting entries needed and footnotes for the financial statements. They analyze potential investments, business decisions (such as make-or-buy a subassembly), and past performance. They prepare budgets and long range forecasts. They review and suggest accounting controls to secure assets and reduce misleading reporting or errors. They can be specialized, such as only working on sales and use taxes or conduct internal audits or be a general ledger accountant where it all comes together for reporting. Private accountants have a number of speciality certifications that they can pursue. CMA, certified management accountant and Certified Internal ...

Solution Summary

Your tutorial is 757 words plus six references and discusses certifications and accounting duties, accounting for bad debts, and the Martha Stewart insider case.

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