Users of Accounting
Is the owner an internal or external user?
Internal
I record financial transactions and maintain the accounting records of a business. Who am I?
Book Keeper
State the basic accounting equation?
Assets = Capital + Liabilities
When an asset increases, is it debited or credited?
Debited
Who may lend money to a business and wants to know if it can repay the loan?
Financial Institution
I prepare financial statements and provide accounting advice to businesses. Who am I?
Accountant
A business has assets of $50,000 and liabilities of $20,000. What is the capital?
$30,000
When a liability increases, is it debited or credited?
Credited
Who is interested in the business because they may invest money in it?
Investors
Which career focuses on checking whether a company's financial statements are fairly presented?
Auditor
A business has capital of $40,000 and liabilities of $15,000. What are its assets?
$55,000
When capital increases, is it debited or credited?
Credited
Who is interested in the amount of tax a business should pay?
Government
I help calculate employees pay
Payroll Clerk
Assets are $75,000 and capital is $45,000. Calculate the liabilities.
$30,000
The owner introduces $10,000 cash into the business. Which account is debited?
Cash
Employees are external users because they do not own the business. True or False
False
Which career involves investigating financial information to identify fraud or financial misconduct?
Forensic Accountant
What are the three elements of the accounting equation?
Assets, Capital and Liabilities
The owner introduces $10,000 cash into the business. Which account is credited?
Capital