Importance of Accounting
The process of organizing, analyzing, and communicating financial information that is used for decision-making.
What is accounting?
This type of accounting uses both financial and nonfinancial information to make decisions.
What is managerial accounting?
The primary purpose or mission of this type of entity is to earn a profit by selling goods and services.
What is a for-profit entity?
A person or group who relies on financial information to make decisions.
What is a stakeholder?
The process of ensuring activities are carried out as intended or designed.
What is auditing?
Accounting is sometimes called the “language of _____.”
What is business?
or
What is life?
This type of accounting is used by external users.
What is financial accounting?
This type of entity exists at the federal, state, and local levels and is funded by taxpayers.
What is a governmental entity?
Another word for "Stock."
What is shares?
Entry-level positions in the accounting profession usually require a minimum of this degree.
What is a bachelor's degree?
Financial accounting information is valuable as it measures whether or not the company was financially _________.
What is successful?
This type of accounting is used by internal users.
What is managerial accounting?
This type of entity tends to depend on financial longevity based on donations and grants.
What is a not-for-profit entity?
A company whose stock is available only to employees or select individuals or groups
What is a privately held company?
The process of giving advice or guidance on financial and nonfinancial impact of a course of action.
What is consulting?
A business activity or event that has an effect on financial information presented on financial statements.
What is a transaction?
This type of accounting is audited by a CPA.
What is financial accounting?
A for-profit business can be divided into these 3 categories.
What is manufacturing, retail, and service?
This type of company is one whose stock is traded on an organized stock exchange such as the New York Stock Exchange (NYSE).
What is a publicly traded company?
This common accounting exam has four parts including Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). A score of at least 75% must be earned in order to pass.
What is the Certified Public Accountant (CPA) exam?
These are a common set of rules, standards, and procedures that publicly traded companies must follow when composing their financial statements.
What is generally accepted accounting principles (GAAP)?
Users of accounting information are generally divided into these two categories.
What is internal & external?
This type of business does not sell tangible products to customers but rather provides intangible benefits to customers.
What is a service business?
A bank or other institution that has the primary purpose of lending money.
What is a lendor?
Most states require 150 semester hours of college credit for this professional certification.
What is a Certified Internal Auditor (CIA)?