Accounting Activities

Question 1

Describe

Analysis

Accounting Activities

Answer 1

Involves use of ratios, percentages, and data visualization (graphs and charts) to highlight significant financial trends and relationships

Accounting Activities

Question 2

Describe

Interpretation

Accounting Activities

Answer 2

Involves explaining the uses, meaning, and limitations of reported data

Accounting Activities

Question 3

True or false

The three steps in the accounting process are identification, recording, and communication.

Accounting Activities

Answer 3

True

Accounting Activities

Question 4

True or False

Bookkeeping encompasses all steps in the accounting process

Accounting Activities

Answer 4

False;
Bookkeeping involves only the recording step

Accounting Activities

Question 5

True or False

Accountants prepare, but do not interpret, financial reports

Accounting Activities

Answer 5

False;
Accountants analyze and interpret information in reports as part of the communication step

Accounting Activities

Question 6

True or False

The two most common types of external users are investors and company officers

Accounting Activities

Answer 6

False;
The two most common types of external users are investors and creditors

Accounting Activities

Question 7

True or False

Managerial accounting activities focus on reports for internal users

Accounting Activities

Answer 7

True

Accounting Activities

Question 8

Define

Ethics

Accounting Activities

Answer 8

The standards of conduct by which actions are judged as right or wrong, honest or dishonest, fair or not fair.

Accounting Activities

Question 9

Enumerate

Steps in analyzing ethics cases and situations

Accounting Activities

Answer 9

1. Recognize an ethical situation and the ethical issues involved.
2. Identify and analyze the principal elements in the situation.
3. Identify the alternatives, and weight the impact of each alternative on various stakeholders.

Accounting Activities

Question 10

Concept

The accounting profession has developed a set of standards. This common set of standards is called …

Accounting Activities

Answer 10

Generally Accepted Accounting Principles (GAAP)

Accounting Activities

Question 11

Describe

FASB

Accounting Activities

Answer 11

The primary accounting standard setting body in the United States is the Financial Accounting Standards Board (FASB).

Accounting Activities

Question 12

Concept

The primary accounting standard setting body in the United States

Accounting Activities

Answer 12

FASB

Accounting Activities