Topic 1: Accounting in Business

Question 1

Recordkeeping

Answer 1

Can also be referred to as bookkeeping. A part of accounting that involves recording transactions and events, either manually or electronically.

Question 2

Financial Accounting

Answer 2

An area of accounting that mainly serves external users.

Question 3

Managerial Accounting

Answer 3

Area of accounting aimed mainly at serving the decision-making needs of internal users; also called management accounting.

Question 4

External Users

Answer 4

Persons using accounting information who are not directly involved in running the organization.

Question 5

Internal Users

Answer 5

Persons using accounting information who are directly involved in managing the organization.

Question 6

Data Visualization

Answer 6

A graphical presentation of data to help people understand its significance and draw reliable inferences.

Question 7

Assets

Answer 7

Resources a business owns or controls that are expected to provide current and future benefits to the business.

Question 8

Liabilities

Answer 8

Creditors’ claims on an organization’s assets; involves a probable future payment of assets, products, or services that a company is obligated to make due to past transactions or events.

Question 9

Equity

Answer 9

Owner’s claim on the assets of a business; equals the residual interest in an entity’s assets after deducting liabilities; also called net assets or owner’s equity.

Question 10

Owner Investments

Answer 10

Assets put into the business by the owner.