General Information
A business must be profitable before it can use accounting. Right or Wrong?
Wrong. Accounting is used by businesses regardless of whether they are profitable.
Oversees a company’s accounting operations, including financial reporting, budgeting, and internal controls.
Controller
Beliefs or values that distinguish right from wrong.
Ethics
A business owned by one person.
Sole proprietorship
What does CPA stand for?
Certified Public Accountant (CPA)
Career path that focuses on general and cost accounting, prepares budgets and sets organizational financial strategies.
Managerial Accounting
Which statement is correct about accounting?
A. Accounting is only used to calculate taxes.
B. Accounting provides financial information used to make business decisions.
Answer: B
Accounting provides financial information used to make business decisions.
A business owned by two or more people.
Partnership
What is an internal user?
A user directly involved in managing and operating an organization.
Career that involves working as an accountant within a single company or organization, handling tasks such as budgeting, financial reporting, and internal accounting.
Private Accounting
Which statement correctly describes the business entity concept?
A. The business and the owner's personal financial activities are treated as the same.
B. The business is treated as a separate entity from its owner for accounting purposes.
Answer: B
The business is treated as a separate entity from its owner for accounting purposes.
A business that is separate from its owners.
Corporation
Name three people or groups who may use financial accounting information.
Career involves providing accounting services to different clients, such as auditing, tax preparation, and consulting.
Public Accounting
Which statement about accounting careers is correct?
A. Accountants can work in areas such as public accounting, private accounting, auditing, and taxation.
B. Accountants can only work as bookkeepers.
Answer: A
Accountants can work in areas such as public accounting, private accounting, auditing, and taxation.
How do you call a person who has participation as owner in a corporation.
Stockholder
What are the six steps of the accounting process used to transform business transactions into useful financial information?
1) Analyzing
2) Recording
3) Classifying
4) Summarizing
5) Reporting
6) Interpreting.
The top professional accounting designation earned by meeting education, exam, and licensing requirements.
Certified Public Accountant (CPA)
Which statement correctly describes financial accounting?
A. Financial accounting provides information primarily for external users such as investors and creditors.
B. Financial accounting is used only by the business owner and employees.
Answer: A
Financial accounting provides information primarily for external users such as investors and creditors.
A business that provides something other than merchandise to its customers.
A service business