INTRODUCTION TO ACCOUNTING

Bookkeeping and accounting are one and the same because the bookkeeping function includes the accounting process.

• True

• False

The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

• True

• False

Accounting is thought to be the "language of business" because business information is communicated to stakeholders.

• True

• False

Managerial accounting information is used by external and internal users equally.

• True

• False

Financial accounting provides information to all of the business stakeholders, while the main focus for managerial accounting is to provide information to the management.

• True

• False

Accounting Information System deals with helping clients to improve their information system and business performance.

• True

• False

Which of the following best describes accounting?

• Records economic data but does not communicate the data to users according to any specific rules.

• Used only for filling out tax returns and for financial statements for various type of governmental reporting requirements.

• Of no use by individuals outside of the business.

• An information system that provides reports to stakeholders.

Which of the following is NOT a role of accounting in business?

• To assess the various informational needs of stakeholders and design its accounting system to meet those needs.

• To provide information for managers to use in operating the business

• To personally guarantee loans of the business.

• To provide information to other stakeholders to use in assessing the economic performance and condition of the business to make decisions regarding the economic condition of the company.

Tax accountants would be responsible for providing the following information:

• Expansion of a product line report to management

• Consumer reports to customers

• Profit reports to owners and management.

• Compliance and planning of tax reports to government agencies.

Deals with the review of financial statements to assess their fairness and adherence to accounting principles

• Forensic Accounting

• Accounting Education

• Cost Accounting

• Auditing