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What do you call a person who keeps accounts for a business?

accountant bookkeeper


What is period accounting?

This concept defines the unit of time for which accounting data are collected. It is hard to calculate and meassure the profit if the business is trading for long periods. Therefore, accountants estimate profitabilty in the short segments of time that we call Accounting periods.


What do you call a person who keeps the financial records of a company?

A person who keeps the financial records of a company is typically called an accountant. Accountants are responsible for maintaining accurate financial statements, managing budgets, and ensuring compliance with financial regulations. They may also analyze financial data to help inform business decisions. In some contexts, this role may also be referred to as a bookkeeper, especially in smaller organizations.


Why might the revenue and cost figures shown on a standard income statement not represent the actual cash inflows and outflows that occurred during a period?

The recognition and matching principles in the financial accounting call for revenues, and the costs associated with producing those revenues, to be "booked" when the revenue process is essentially complete, not necessarily when the cash is collected or bills are paid. Note that this way is not necessarily correct; it's the way accountants have chosen to do it.


Why is it that the revenue and cost figures shown on a standard income statement may not be representative of the actual cash inflows and outflows that occurred during a period?

The recognition and matching principles in financial accounting call for revenues, and the costs associated with producing those revenues, to be "booked" when the revenue process is essentially complete, not necessarily when the cash is collected or bills are paid. Note that this way is not necessarily correct; it's the way accountants have chosen to do it.