You are an Accountant and you are in your office on a Saturday working on client files. You receive a phone call from an individual who was selected to be audited by the IRS. She was confused about what type of help she needed. She said she needed you to explain to her the difference between a Private and Publica Accountant and a Bookkeeper. She also wanted to know what credential each of them needed. Please explain to the call the difference and credential requirements.

After you explained the differences she also wants to know how to understand accounting generally. Please explain to the caller generally the accounting process including the Accounting Cycle, the need and purpose of Financial Statements and Income Statements and whats included in both. Distinguish for her the differences between Gross Income, Profit, Expenses and Net Income. Help her understand when she will actually see a profit in her accounting.

After giving her a very satisfactory explanation of accounting shes going to want to be given the 101 of the Financial system. Please give the caller a general break down on Money and Financial system including defining finance, money and functions of money. Explain to her the Federal Reserve System and it make up. Also, explain the head of the Federal Reserve System and why they wild so much power. Make clear to her the function and purpose of the monetary policy. Finally, distinguish for her the different types of Banking Institutions and Non Banking Institutions.

INSTRUCTIONS:

Fully respond to the prompt in 300 words or more. You will also need to respond to one of your classmates understanding of the content for full credit. Respond to your classmates by name and respectfully agree or disagree with their understanding of the content in detail explaining why thats youre position.