Unit 1 - 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?

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

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

• An information system that provides reports to stakeholders.

• Of no use by individuals outside of the business.

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

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

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

• 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.

• To personally guarantee loans of the business.

Tax accountants would be responsible for providing the following information:

• Compliance and planning of tax reports to government agencies.

• Profit reports to owners and management.

• Expansion of a product line report to management.

• Consumer reports to customers.

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

• Cost Accounting

• Auditing

• Accounting Education

• Forensic Accounting