What 3 types of people require the information that accounting systems provide? - correct answer Managers, Investors, and Creditors
Book keeping - correct answer The process of identifying, measuring in monetary terms, rec...
What 3 types of people require the information that accounting systems provide? - correct answer
Managers, Investors, and Creditors
Book keeping - correct answer The process of identifying, measuring in monetary
terms, recording and classifying appropriate economic transactions
Accounting - correct answer the process of recording, classifying and
communicating financial information
concerning the economic activity of an enterprise
Accounting theory usually divides the study of the field into three areas differentiated by the type of
user: - correct answer Financial, managerial, and tax accounting.
financial accounting - correct answer geared for the users outside the firm
managerial accounting - correct answer accounting style used by managers inside
the firm
tax accounting - correct answer involves the preparation of records and reports
necessary for filing tax returns
managerial accounting - correct answer used mostly by managers for planning and
control purposes and is very specific to the needs of individual departments and managers
External users of financial accounting reports include - correct answer stockholders,
lenders, financial analysts,
economists, labor unions, trade associations, and academic faculty
, Revolves around what is known as an accounting entity - correct answer Financial
Accounting
Accounting entity can be a - correct answer non-profit organization, an individual,
or a business
If the accounting entity is a business it can be a - correct answer proprietorship,
partnership, or corporation
Proprietorship - correct answer unincorporated business organizations with one
owner
The owner is responsible for all debt incurred by the business regardless of how much he has
invested - correct answer Proprietorship
Partnership - correct answer the same as a proprietorship except that it is owned by
two or more individuals
Like proprietorships, a ____________ is not a legal entity but is recognized, for accounting purposes, as
a
business entity separate from the financial dealings of its individual owners - correct answer
partnership
T/F Partnerships and proprietorships cease to exist as an
accounting entity when one of the owners dies - correct answer True
Large businesses owned by many individuals who are usually not active in their management - correct
answer Corporations
Ownership in ___________ is divided into shares; thus the owners are called shareholders - correct
answer corporations
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