The Purposes & Uses Of Accounting Information

Question 0

Financial Accounting

Answer 0

Area of accounting concerned with preparing financial information for users outside the organization

Question 1

Accounting

Answer 1

Measuring, interpreting, and communicating financial information to support internal and external decision making

Question 2

Management accounting

Answer 2

Area of accounting concerned with preparing data for use by managers within the organization

Question 3

Bookkeeping

Answer 3

Record keeping; the clerical aspect of accounting

Question 4

Private Accountants

Corporate accountants

Answer 4

In house accountants employed by organizations and businesses other than a public accounting firm

Question 5

Controller

Answer 5

Highest ranking accountant in a company, responsible for overseeing all accounting functions

Question 6

Certified Public Accountants (CPAs)

Answer 6

Professionally licensed accountants who meet certain requirements for education and experience and who pass a comprehensive examination

Question 7

Public accountants

Answer 7

Professionals who provide accounting services to other businesses and individuals for a fee

Question 8

Audit

Answer 8

Formal evaluation of the fairness and reliability of a client’s financial statements

Question 9

Cost accounting

Answer 9

Computing and analyzing production and operating costs

Question 10

Tax accounting

Answer 10

Preparing tax returns and interpreting tax law

Question 11

Financial analysis

Answer 11

Evaluating a company’s performance and the financial implications of strategic decisions such as product pricing, employee benefits, and business acquisitions

Question 12

Forensic accounting

Answer 12

Combining accounting and investigating skills to assist in legal and criminal matters

Question 13

Market Capitalization

Answer 13

The value of a company
Market value of shares outstanding
Stock price * # shares