Introduction to accounting keywords and questions

Question 1

What are the types of user of management accounting?

Answer 1

Managers
Employees and their representatives
Owners

Question 2

What are the types of users of financial accounting?

Answer 2

Lenders
Suppliers
Investment analysts
Community representatives
Government
Competitors
Customers

Question 3

Government offices

Answer 3

Monitor a company’s position and performance or need financial information about a company to inform decisions

Question 4

Suppliers

Answer 4

A person/organisation that provides something needed such as a product/service

Question 5

Customers

Answer 5

A person who buys goods/services from a shop or business

Question 6

Lenders

Answer 6

Provide funding to businesses. In return the business must repay the funding at a fixed point

Question 7

Employees and their representatives

Answer 7

Employees are those within the company and their representatives work to provide them with the best working conditions

Question 8

Owners

Answer 8

The owner is usually the individual/ group who sets up the business. However, it can convert into a company limited by shares

Question 9

Management

Answer 9

Includes the group of people appointed to run the business on behalf of the owners

Question 10

Accounting

Answer 10

Refers to the system of recording, summarising and reporting financial information about the business. Such information, is useful to a wide range of stakeholders who make decisions about the business