Accounting and Business (chapter 1)

Question 1

Accounting

Answer 1

accounting is a system of dealing with financial data that provides information for decision making

Question 2

Five main activities involved in accounting

Answer 2

-Gathering financial information
-Preparing and collecting permanent records
-Rearranging, summarizing and classifying
-Preparing information reports and summaries
-Establishing controls to promote accuracy and honesty among employees

Question 3

Professional Accountant (types CA, CGA, CMA)

Answer 3

-CA: Chartered Accountant
-CGA: Certified General Accountant
-CMA: Certified Management Accountant

Question 4

Public accountant

Answer 4

serves the general public for a fee in the same way as a doctor or lawyer does. An important job they do is auditing

Question 5

Audit

Answer 5

the examination and testing of the books, records, and procedures of a business in order to be able to express an opinion