Page 64 - Accounting Principles (A Business Perspective)

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2. Recording business

transactions

Learning objectives
After studying this chapter, you should be able to:
• Use the account as the basic classifying and storage unit for accounting information.
• Express the effects of business transactions in terms of debits and credits to different types of accounts.
• List the steps in the accounting cycle.
• Record the effects of business transactions in a journal.

• Post journal entries to the accounts in the ledger.
• Prepare a trial balance to test the equality of debits and credits in the journalizing and posting process.
• Analyze and use the financial results—horizontal and vertical analyses.
Salary potential of accountants

Selecting a major represents much more than the choice of courses a student takes in college. To a significant
degree, the student's major, along with academic performance, will determine the career paths available upon
graduation. Few professionals would recommend a specific career choice based solely on salaries. However, as
students select their major and map out their career path, it is important that they make informed decisions with
respect to the potential financial rewards of the various options. Outlined below is information on selected salaries
for many accounting-related careers. These salaries, current as of 2009, should be viewed only as guidelines.
Salaries at all levels can vary significantly between locations. Also, one should add 10 to 15 per cent to the listed

salary for professional certifications (such as the CPA) or for a graduate degree (Masters of Accounting or MBA).
Salaries for Public Accounting, Non-Partners
Position
Large CPA Firms: Salary Range
Starting Salaries $35,750 - $42,500
Salary between 1-3 years $41,000 - $51,250
Manager/Director $77,750 - $119,000
Small CPA Firms:
Starting Salaries $29,500 - $36,250
Salary between 1-3 years $33,750 - $42,500
Manager/Director $62,750 - $84,500
Salaries for Corporate Accounting - Large Corporations
Position Salary Range
Chief Financial Officer/Treasurer $244,500 - $347,000
Vice President, Finance $189,000 - $293,500
Director of Finance $121,500 - $178,250
Director of Accounting $115,250 - $157,500
Controller $105,750 - $147,250
Assistant Controller $89,750 - $114,750
Tax Director $117,000 - $209,750
Tax Manager $78,000 - $113,750
Audit Director $127,750 - $200,750
General Accounting - Manager $61,250 - $83,250
General Accounting - 1-3 years experience $37,500 - $48,750
General Accounting - starting salary $31,750 - $39,750

Accounting Principles: A Business Perspective 65 A Global Text