7. Jobs in accounting

Accounting is an ABC of any business. Public accountants, meaning we provide accounting services to other companies. Private accounting refers to the internal accounting departments you would find in large companies. Accounting company provides three main categories of service – audit, tax and consulting.

The smaller the client the more likely we are to look at its individual transactions to see if they were reported correctly. With large clients we look more for the proper system and controls. But we could never look at all of the records of any client. That would be extremely time consuming and expensive.

There are four large public accounting firms that dominate the industry. These four companies work with almost every large company in the country in one capacity or another. From an employee’s standpoint, the Big four firms provide an excellent setting to learn the business of accounting.

8. Accounting assumptions and principles

Accounting principles are built on a foundation of a number of basic concept. One of them is known as the consistency principle. Companies can choose their accounting policies – their way of doing their accounts.

The historical cost principle states that companies record the original purchase price of assets and not their current selling price or replacement cost.

Some countries with regular high inflation use replacement cost accounting, which values all assets at their current replacement cost – the amount that would have to paid to replace them now.

The full-disclosure principle state that financial reporting must include all significant information. The principle of materiality says that very small and unimportant amounts do not need to be shown. The principle of conservatism (prudence) is that where different accounting methods are possible. The objectivity principle says that accounts should be based on facts and not on personal opinions or feelings. The revenue recognition principle is that revenue is recognized in the accounting period in which it is earned. The matching principle states that each cost or expense related to revenue earned must be recorded in the same accounting period as the revenue it helped to earn.

9. Domestic and international markets. Microcomtec Corporation

Domestic marketing is country specific in the sense that the production, promotion and distribution take place locally or internally as opposed to international marketing, which applies the same concept at a global level.

The main difference between domestic trade and international trade is the use of foreign currencies to pay for the goods and services crossing international borders. Whenever a country imports or exports good and services, there is a resulting flow of funds: money returns to the exporting nation, and money flows out of the importing nation. Trade and investment is a two-way street, and with a minimum of trade barriers, international trade and investment usually makes everyone better off.

Free trade agreements often cause disputes between countries, especially when one country thinks the other is engaged in restrictive practices. Occasionally, trade wars erupt, and sanctions or embargoes are imposed on countries, and may not be lifted for long periods. On the other hand European countries closely related economically and enjoying good relations have entered into monetary union and a single currency.