The Language Of Business

Question 1

Accounting

Answer 1

Process of recording, summarizing, interpreting, and communicating financial info to interested parties

Question 2

Accounting System

Answer 2

Designed to collect, classify, and summarize financial data

Question 3

Financial Statements

Answer 3

Periodic financial reports

Question 4

Certified Bookkeeper

Answer 4

Required to pass national exam, sign code of ethics, gain 2 yrs experience or 3000 hrs

Question 5

Three Areas of Accounting

Answer 5

Public, managerial, and government

Question 6

Public Accounting

Answer 6

Services offered usually include auditing, tax accounting, management advisory services

Question 7

CPA

Answer 7

Requires certain number of college credits, demonstration of good character, uniform CPA exam, experience requirement, follow code of ethics

Question 8

Auditing

Answer 8

Review of financial statements to ensure they follow GAAP, performed by CPA

Question 9

Tax Accounting

Answer 9

Tax compliance and planning

Question 10

Management Advisory Services

Answer 10

Improvement of info systems and business performance

Question 11

Managerial Accounting Activities

Answer 11

Establish accounting policies
Manage accounting system
Prep financial statements
Interpret
Advise
Tax Prep and Planning
Prep internal reports

Question 12

Governmental Accounting

Answer 12

Staff of government entities
Accountants can audit financial statements to uncover violations

Question 13

Users of Financial Info

Answer 13

Owners and Managers
Suppliers
Banks
Tax Authorities
Customers
Employees and Unions

Question 14

Accounting Standard Codification

Answer 14

The source of authoritative U.S. GAAP

Question 15

Accounting Standards Update

Answer 15

communicates changes to codification, covering approximately 90 topics

Question 16

corporation

Answer 16

public/private business entity, sperate from owners, legal right to own property and do business in its own name

Question 17

Discussion Memorandum

Answer 17

explains topic under consideration by FASB

Question 18

Economic Entity

Answer 18

business or org with purpose to produce profit for owners

Question 19

Exposure Draft

Answer 19

proposed solution to problem under consideration by FASB

Question 20

Governmental Accounting

Answer 20

accounting performed for fed, state, or local gov unit

Question 21

Partnership

Answer 21

business entity owned by two or more people, legally responsible for debts and taxes of business

Question 22

Separate Entity Assumption

Question 23

Social Entity

Question 24

Sole Proprietorship

Question 25

Statements of Financial Accounting Standards

Question 26

Tax Accounting