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ACCOUNTING IS A SYSTEM THAT ___________, _____________, AND
_________________ INFORMATION THAT IS _____________, _____________, AND
_______________, TO HELP USERS MAKE BETTER DECISIONS correct answers
ACCOUNTING IS A SYSTEM THAT IDENTIFIES, RECORDS, AND COMMUNICATES
INFORMATION THAT IS RELEVANT, RELIABLE, AND COMPARABLE, TO HELP
USERS MAKE BETTER DECISIONS
External users of accounting information are correct answers not directly involved in running the
organization.
examples of external users correct answers • Shareholders (investors)
• Lenders
• Directors
• Customers
• Suppliers
• Regulators
• Lawyers
• Brokers
• The press.
Internal users of accounting information are those correct answers directly involved in managing
and operating an organization.
Examples of internal users correct answers • Chief executive officer (CEO)
• Chief financial officer (CFO)
• Chief audit executive (CAE)
• Treasurer
• Other executive
• Managers
3 types of accounting correct answers 1. Private accounting - majority of opportunities Ex.
employees working for businesses.
2. Public accounting - offers the next largest number of opportunities Ex. auditing and tax
advice.
3. Government and Not-for-Profit agencies Ex. business regulation and investigation of law
violations.
Typically require a certificate Ex. Certified public accountants (CPAs)
The fraud triangle is a model created by criminologist that asserts the following 3 factors must
exist for a person to commit fraud, what are they? correct answers 1. Opportunity - A person
must envision a way to commit fraud with a low perceived risk of getting caught. Employers can
directly reduce this risk. An example of some control on opportunity is a pre-employment
background check.
ACCOUNTING IS A SYSTEM THAT ___________, _____________, AND
_________________ INFORMATION THAT IS _____________, _____________, AND
_______________, TO HELP USERS MAKE BETTER DECISIONS correct answers
ACCOUNTING IS A SYSTEM THAT IDENTIFIES, RECORDS, AND COMMUNICATES
INFORMATION THAT IS RELEVANT, RELIABLE, AND COMPARABLE, TO HELP
USERS MAKE BETTER DECISIONS
External users of accounting information are correct answers not directly involved in running the
organization.
examples of external users correct answers • Shareholders (investors)
• Lenders
• Directors
• Customers
• Suppliers
• Regulators
• Lawyers
• Brokers
• The press.
Internal users of accounting information are those correct answers directly involved in managing
and operating an organization.
Examples of internal users correct answers • Chief executive officer (CEO)
• Chief financial officer (CFO)
• Chief audit executive (CAE)
• Treasurer
• Other executive
• Managers
3 types of accounting correct answers 1. Private accounting - majority of opportunities Ex.
employees working for businesses.
2. Public accounting - offers the next largest number of opportunities Ex. auditing and tax
advice.
3. Government and Not-for-Profit agencies Ex. business regulation and investigation of law
violations.
Typically require a certificate Ex. Certified public accountants (CPAs)
The fraud triangle is a model created by criminologist that asserts the following 3 factors must
exist for a person to commit fraud, what are they? correct answers 1. Opportunity - A person
must envision a way to commit fraud with a low perceived risk of getting caught. Employers can
directly reduce this risk. An example of some control on opportunity is a pre-employment
background check.
