BUS 110 Test 6

Accounting involves the _____ of the financial activities for firms.

• planning

• creation

• delegating

• summarizing

Managerial accounting provides information that would probably be most beneficial to:

• shareholders

• a lending officer of the bank

• a middle manager of the company

• financial analysts

_____ deals with reporting to outsiders.  _____ accounting deals with the internal operations of the firm.

• Financial accounting; Auditing

• Financial accounting; Managerial accounting

• Bookkeeping; Financial accounting

• External accounting; Internal accounting

To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as:

• generally accepted accounting principles

• financial accounting standards

• principled accounting procedures

• accounting rules and principles

_____ is a yearly document that describes a firm's financial status and usually discusses a firm’s financial activities during the past year and its prospects for the future.

• annual report

• trial balance

• financial analysis

• earnings report

An accountant who has a bachelor's degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a:

• certified tax specialist

• professional accountant

• certified private accountant

• certified public accountant

In the accounting field, CMA stands for:

• consolidated monetary auditor

• certified monetary auditor

• certified managerial accountant

• certified motivational accountant

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

• Record keeping

• Bookkeeping

• Accounting

• Financial management

Things of value owned by a firm are called its:

• assets

• owners' equity

• tangibles

• intangibles

In accounting, every transaction must be recorded as two entries.  This system is called:

• double-entry bookkeeping

• double-decker bookkeeping

• dual-notation bookkeeping

• tandem record keeping