Definition of Accounting

Question 1

It is the process of recording financial transactions pertaining to a business

Answer 1

Accounting

Question 2

The accounting process includes:

Answer 2

Analyzing, recording, summarizing, financial transactions, and reporting these transactions in the form of financial
statements

Question 3

Is a service activity. Its
function is to provide quantitative information, primarily financial in nature, about economic
entities, that is intended to be useful in making economic decisions, in making reasoned choices
among alternative courses of action.”

Answer 3

Accounting

Question 4

What is Accounting?

Answer 4

Is a service activity. Its
function is to provide quantitative information, primarily financial in nature, about economic
entities, that is intended to be useful in making economic decisions, in making reasoned choices
among alternative courses of action.”

Question 5

Branches of Accounting:

It involves recording and categorizing
transactions for business. This data is generally historical, meaning it’s from the past. It
also involves generating financial statements based on these transactions.

Answer 5

Financial Accounting

Question 6

Branches of Accounting:

It concerns itself with recording and analyzing
manufacturing costs. It looks at a company’s fixed and variable costs and how they affect a
business and how these costs can be better managed, according to Accounting Tools.

Answer 6

Cost Accounting

Question 7

Branches of Accounting:

It is an independent third party reviews a company’s financial statements to make sure they are presented correctly and comply with GAAP and IFRS.

Answer 7

External Auditing

Question 8

Branches of Accounting:

It involves evaluating how a business divides up accounting duties, who is authorized to
do what accounting task and what procedures and policies are in place.

It also helps a business to zero in fraud, mismanagement and waste or identify and control any
potential weaknesses in its policies or procedures.

Answer 8

Internal Auditing

Question 9

Branches of Accounting:

It is to provide data that managers need to make decisions about a business’s
operations, not comply strictly with GAAP.

It includes budgeting
and forecasting, cost analysis, financial analysis, reviewing past business decisions and
more. Cost accounting is a type of it.

Answer 9

Managerial Accounting or Management Accounting

Question 10

It is to provide data that managers need to make decisions about a business’s
operations, not comply strictly with GAAP.

Answer 10

Accounting Information Systems

Question 11

Branches of Accounting:

It involves planning for tax diminution, payment
scheme and the preparation of tax returns.

Answer 11

Tax Accounting

Question 12

Branches of Accounting:

It focuses on legal affairs such as
inquiry into fraud, legal cases and dispute and claims resolution.

Answer 12

Forensic Accounting

Question 13

Branches of Accounting:

This branch of accounting centers around the management of
property for another person or business.

It covers estate accounting, trust accounting and receivership

Answer 13

Fiduciary Accounting

Question 14

What are the uses of Accounting Information?

Answer 14

1. Measuring the performance of various
business operations.
2. To create budgets for their
companies.
3.  To make business decisions.
4.  To provide business owners information about the cost of
various resources or business operations
5. To make investment
decisions