Accounting Mid-Unit Review

The process of recording, maintaining, and reporting an organization’s financial transactions and records is...

• Finance

• Accounting

• Payroll

Management uses financial information to make decisions about...

• Growth strategies

• Hiring additional employees

• Paying off debt

• What color shirt to wear

An investor is someone who...

• Buys stock in the company

• Is CEO of the company

• Shops at the business

What focuses on the MANAGEMENT of the assets, liabilities, and cash flow of an organization?

• Accounting

• Finance

• Payroll

• Shareholders

What refers to a business that works with their clients to help prepare reports and review (audit) financial information for accuracy and completeness before it is shared publicly?

• Private accounting

• Public accounting

What refers to a role inside a company that helps record transactions and prepare/analyze financial statements and reports?

• Public accounting

• Private accounting

What is the system of accounting used by governments and non-profit organizations to group resources into specific funds so they know what resources are available to complete a specific purpose or task?

• Private accounting

• Public accounting

• Fund accounting

INTERNAL users of financial information include...

• Managers

• Creditors (lenders)

• Investors

What is the function of accounting that involves preparing financial statements and reports for EXTERNAL users?

• Managerial accounting

• Fund accounting

• Financial accounting

• Market capitalization

Market capitalization is also known as the total value of the company.

• True

• False