Ch. 1

Question 1

accounting

Answer 1

an information system that identifies, records, and communicates the economic events of an organization to interested users

Question 2

bookkeeping

Answer 2

involves only the recording of economic events…part of accounting…analyze and interpret for users

Question 3

identification

Answer 3

select economic events relevant to the business

Question 4

recording

Answer 4

record, classify, and summarize a history of its financial activities in chronological order

Question 5

communication

Answer 5

prepare accounting reports…collected information to interested users by means of accounting reports.