Chapter 1: Accounting In Business

Question 1

GAAP

Answer 1

Generally Accepted Accounting Principles

Concepts and rules that govern financial accounting.

Question 2

SEC

Answer 2

Securities and Exchange Commission

Government agency that oversees GAAP in businesses and stock holders.

Question 3

Accounting

Answer 3

An information and measurement system that identifies, records, and communicates an organization’s business activities.

Question 4

Identifying

Answer 4

Select transactions and events

Question 5

Recording

Answer 5

Input, measure, and log

Question 6

Communicating

Answer 6

Prepare, analyze, and interpret

Question 7

External User

Answer 7

Do not directly run the organization and have limited access to its accounting information; Financial Accounting.

Question 8

Internal Users

Answer 8

Directly manage the organization; Managerial Accounting.

Question 9

Private Accounting

Answer 9

Employees working for a business

Question 10

Public Accounting

Answer 10

Accounting services such as auditing and taxation.

Question 11

Government and Not-for-profit Accounting

Answer 11

Business regulation and law enforcement

Question 12

CMA

Answer 12

Certificate in Management Accounting

Question 13

CIA

Answer 13

Certified internal auditor

Question 14

FASB

Answer 14

Financial Accounting Standards Board -

Sets GAAP from the SEC.

Question 15

IASB

Answer 15

International Accounting Standards Board -

Board overseeing International accounting.

Question 16

IFRS

Answer 16

International Financial Reporting Standards -

Identify preferred accounting practices.

Question 17

Assets

Answer 17

Resources a company owns.

Cash, supplies, equipment, land, and accounts receivable.

Question 18

Liabilities

Answer 18

Creditor’s claims on assets.

Question 19

Equity

Answer 19

The owner’s claim on assets and is equal to assets - liabilities.