Introduction to Accounting Flashcards
________ is often called the language of business because it is used in describing all types of business activities.
Accounting
_______ is the writing down of the business transactions in a record book called a journal.
Recording
_______ means arranging or organizing transactions in classes of categories
Classifying
_______ is the sum of events to find the total so that financial statements can be prepared.
Summarizing
_______ is the preparation of financial reports which will help the business to understand what happened to the company.
Interpreting
What are the important terms?
Money
Event
Transactions
People engaged in public accounting render independent and expert financial services to the public for a fee.
Public Accounting
Employed in business enterprise, assisting management, maintaining records, preparing budgets, prepare taxes.
Private Accounting
Employed in branches of government and custody of public funds.
Government Accounting
Enter the teaching profession and research work.
Research and Education
It is a requirement for a business to keep records of its _______ and _______.
Transactions and Events
It includes the management itself. The owner(s)/Management would know the progress of their business and how their money is being used.
Internal users
These are the people outside of the business like the government, potential investors, creditors, labor unions, and budget officers/ accountants, auditors.
External users
They are particular with the correct payment of taxes. The financial report will be their basis for checking the correctness of the tax payment.
Government
They usually check first the soundness of the business enterprise before they plan to invest their money and to assure a fair return on their investment.
Potential Investors
