Accounting Definition, Users and Branches w/ Accounting Equation

This Financial Statement shows the income and expenses for a given period.

• Statement of Financial Position

• Statement of Comprehensive Income

• Statement of Changes in Owner's Equity

• Statement of Cash Flow

This Financial Statement shows inflows and outflows of cash for a given accounting period.

• Statement of Financial Position

• Statement of Comprehensive Income

• Statement of Changes in Owner's Equity

• Statement of Cash Flow

This Financial Statement shows the balances of Assets, Liabilities and Capital as of a given accounting period.

• Statement of Financial Position

• Statement of Comprehensive Income

• Statement of Changes in Owner's Equity

• Statement of Cash Flow

This Financial Statement shows how the capital changes over time.

• Statement of Financial Position

• Statement of Comprehensive Income

• Statement of Changes in Owner's Equity

• Statement of Cash Flow

Which of the following in NOT a factor that affects capital?

• Net Income

• Assets

• Owner's Withdrawal

• Additional Investment

Which of the following is a branch of accounting that refers to an independent examination conducted by a CPA for the purpose of rendering an opinion as to the fairness of the presentation of the financial statements?

• Financial Accounting

• Management Accounting

• Auditing

• Tax Accounting

Which of the following branch of accounting serves the information needs of the internal users?

• Financial Accounting

• Management Accounting

• Auditing

• Tax Accounting

Which of the following branch of accounting helps students learn to become professional accountants?

• Accounting Research

• Cost Accounting

• Government Accounting

• Accounting Education

Which of the following users of accounting information ask the question: "is the return on investment worth the risk?"

• Owners

• Suppliers

• Creditors

• Investors

Which of the following users of accounting information are interested in the stability of business which is the suppliers of their needs?

• Employees

• Suppliers

• Customers

• Lending Institutions