Chapter 1.3

Question 1

What are the four specialized fields or branches of accounting?

Answer 1

1. Public Accounting
2. Private Accounting
3. Government Accounting
4. Accounting Research and Education

Question 2

what is public accounting?

Answer 2

it is when accountants offer their professional services for a fee. public accountants are usually self-employed.

Question 3

what is a CPA?

Answer 3

certified public accountants are professionals who are licensed to perform an independent audit of business enterprises or to render other forms of special accounting services to their clients.

Question 4

what are the branches of accounting under public accounting?

Answer 4

1. External Auditing
2. Tax Services
3. Management Advisory Services
4. Other; preparation of financial forecasts, computation of the confidential payrolls and compensation

Question 5

what is external auditing?

Answer 5

it primarily centers on the critical examination of financial statements by an independent CPA to express opinion regarding the fairness of the contents of the financial statements. The CPA reviews a statistically selected sample of records and then issues an audit report.

Question 7

what is management advisory sources?

in public accounting

Answer 7

it provides assisstance to the management.

Question 8

what is private accounting?

Answer 8

when accountants are employed in a private enterprise or in a nonprofit organization.

Question 9

Private Accounting

what is a controller?

Answer 9

the chief accounting officer of a medium-sized or large business enterprise

Question 9

what are the branches under private accounting?

Answer 9

1. Financial accounting
2. Management accounting
3. Internal Auditing
4. Tax Accounting
5. Cost Accounting
6. Budgeting
7. Accounting System Design
8. International Accounting
9. Non-for-Profit Accounting
10. Socio-Economic Accounting

Question 10

Private Accounting

what is financial accounting?

Answer 10

it is primarily concerned with the recordig and classifying of business transactions culminating in the preparation of general-purpose financial statements or reports regarding the business’ financial position, operating results and cash activities in accordance to GAAP.

Question 11

Private Accounting

what is management accounting?

Answer 11

also known as managerial accounting, the specific information needs of the internal data-users principally the management, are provided by the internal reporting functions of the accounting system

Question 12

Private Accounting

what is Internal Auditing?

Answer 12

it deals with determining the operational efficiency of the company regarding protection of the company’s assets, accuracy and reliability of the accounting data and adherence to prescribed maagerial policies.

also known as financial internal auditing

Question 13

Privat Accounting

what is tax accounting?

Answer 13

it enhances the preparation of various tax returs and tax planning necessary to minimize the impact of taxes on the firm.

they specialize in tax compliance and tax planning.

Question 14

what is tax compliance? tax planning?

Answer 14

• Tax compliance means following the many detailed and specific rules of the taxing autorities in in preparing tax returns.
• Tax planning refers to the study of the possible tax effects of various proposed financial transaction in order to minimize taxes and maximize profits.

Question 15

Private Accounting

what is cost accounting?

Answer 15

it has something to do with the determining the inventory costs and/or product cost of the manufactured goods. and assisting in the product pricing activities of the company. cost acctg data is usually used by the management for planning and controlling purposes.

Question 16

Private Accounting

What is Budgeting

Answer 16

it covers the efficient management of cash by anticipating or predicting monetary objectives in the future period

Question 17

Private Accounting

What is Accounting System Design

Answer 17

it primarily includes he evaluation of the company’s control system to find out any area of improvement. It included the establsihment of a computerized accountinf system.

Question 18

Private Accounting

what is internatioal accounting?

Answer 18

International accounting involves keeping track of the tax rules and accounting principles that can affect a business transaction or operation. International accounting has become an essential subset of accounting and business in the present century, given the spread and effectiveness of eCommerce.

Question 19

Private Accounting

what is non-for-profit accounting?

Answer 19

deals with special accounting for charitable organizations governmntal agencies, hosptals, schools, etc.

Question 19

Private Accounting

what is socio-economic accounting?

Answer 19

it concerns itself with the measurement of the impact of a business or government agency’s decision on the public sector.

Question 20

What is Government Accounting?

Answer 20

it mainly focuses on the proper custody of government funds and their purposes.

Question 21

what is accounting research and education/

Answer 21

it is involved in teaching accounting, taxation and some business subjects a CPA who needs to teach in college leved is required to have a master’s degree.