The Role of Accountants and Accounting InformationApril Burleson NafstadMGMT 105 Exam # 5 Study Guide Lectures: 24-32-you'll have 10-14 jobs by age of 38-Information technology (IT)- various appliances and devices used for creating, storing, exchanging and using information in diverse modes, including visual images, voice, multimedia, and business data-first year student in college, by third year your info learned will be outdated -By 2049 a $1,000 computer will exceed human intelligence -1/5 divorces are blamed on Facebook -if facebook was a country it would be the 3rd largest in the world o behind China and India -Top technologies of 2015o Emergent Artificial Technology (AI)never ending language learning NELLself driving cars will help avoid crashes -E-commerce- the use of the internet and other electronic means for retailing and business to business transactions -IT impactso creating portable officesproviding remote access to instant infoo enabling better servicecoordinating remote deliveries o creating learner, more efficient organizations allowing more work and customer satisfaction to be accomplished with fewer people o enabling increased collaboration using collaboration software and other IT communication devices -Internet- gigantic system of interconnected computer networks lined together by voice, electronic, and wireless technologies -what is the difference between data and informationo data- raw fact or figure. don't have much value by themselveso information- compilation of data and statistics -Intranet- organization’s private network of internally linked websites accessible only to employees -extranet- system that allows outsiders limited access to a firm’s internal information network-Electronic conferencing- IT that allows groups of people to communicate simultaneously from vaporous locations via email, phone, or video-VSAT Satellite Communications- network of geographically dispersed transmitter receivers (transceivers) that send signals to and revive signals from a satellite, exchanging voice, video, and data transmissions -Hardware- physical components of a computer network, such as keyboards, monitors, system units and printers-software- programs that tell the compute how to function -Hacker- cubercriminal who agains unauthorized access to a computer or network, either to steal info, money or property or to tamper with data o DOS attack, wireless mooching -Identity theft- unauthorized use of personal info to get loans, credit cards, or other monetary benefits by impersonating the victim - The Role of Accountants and Accounting Information-Accounting- comprehensive system for collecting, analyzing, and communicating financial info-Bookkeeping- recording of accounting transactions -Who does not use accounting information? Consumers- would a consumer typically be concerned with accounting info?-- Controller: person who manages all of a firm’s accounting- Financial Accounting: concerned with external users- Managerial Accounting: concerned with internal users- Audit: examination of a company’s accounting system to determine whether its financial reports are reliable or not- Private Accountant: salaried accountant hired by a business to carry out itsday-to-day financial functions- Forensic Accountant: training to practice for legal purposes - Certified Fraud Examiner (CFE): professional designation in recognition of qualifications for a specialty area within forensic accounting - Sarbanes-Oxley Act of 2002o Sox: to restore public trust in a company to not be fraudulent  Sox requires CEO and CFO have to certify financial records are reliable If clients and auditors falsify, destroy, alter, or conceal records they go to prison for 10 years- Accounting Equationo Assets = Liability + Owner’s Equity Assets: anything of value (bike) Liability: debt that you owe Owner’s Equity: amount of money that owners would receive ifthey sold all of a firm’s assets and paid all of its liabilities- Balance Sheet: financial statement that contains assets, liability, and owner’s equity- Current Asset: anything that can be converted into cash within a year- Fixed Asset: asset with long-term use or value, such as land, buildings, andequipment- Liquidity: ease with which an asset can be converted into cash- Depreciation: accounting method for distributing the cost of an asset over its useful life- Current Liability: debts have to pay within a year (tuition for a student)- Long-Term Liability: debt that’s not due for at least a year (loan for students)- Accounts Payable (Payables): current liability consisting of bills owed to suppliers (what you owe)- Retained Earnings: earnings retained by a firm for its use rather than paid out as dividends - Income Statement: profit (or loss): Revenues – Expenses- Budget: estimate of receipts and expenditures-Jackie Knoppoaccounting ogot job offers from the “big six”oTexas A&M systems ohusband went to medical schoolomoving around due to her husband being in military, still stayed CFO all though worked from far awayoretired at 27oworked in a British schoolohad to learn new terms and proceduresostill able to work well because business is universalono one set thing when you go into accounting - April Burleson Nafstadoclass of 96opassionate about teaching taught at A&M (still does)oyou can go anywhere you wantoNorwegian AFohow to succeed in businessmentors and friends - Healthcare may be hazardous to your health- 25% of patients are harmed when they come to hospitals today- Evolution of medical documentationo Paper to electronic records- Seamless communication - Power of Communicationo Quiet hospitalo Promote safety  Hugs which are bracelets put on infants and if taken off of the 3rd floor of hospital then alarms go offo Reduce Errorso Bar Code Scanningo EPIC: Electronic Medical Record- Cal McNeel – he’s with the Bank & Trust- Credit scores show how you handle money- The key to investing is to start investing- Take $200 a month in an investment for 10 years that earns 8% interest and at age 65 you have $1,180,000- Start habitually saving- Money is the biggest stressor for college students and 70% of people in general- Budgeting o Manage your own money o Include savingso Make a system that works for meo Online resources: www.mint.com  Track your bank accounts, credit cards, loans and investments graphically Automatically tags expenses www.budgettracker.com ;