BUS 101 Unit 7 Study Guide Questions and Correct Answers

BUS 101 - Unit 7 Study Guide Questions and Correct Answers Accounting is the process of collecting, recording, classifying, summarizing, reporting, and analyzing the financial condition of an organization. An accounting system should generate both internal and external reports. Administrative accounting is the term given to the internal workings of the company, such as budgets, sales reports, and analyses of how well marketing strategies are working. Independent accountants who serve organizations and individuals on a fee basis are called public accountants. The Sarbanes-Oxley Act redefines the public corporation-auditor relationship and restricts the types of services auditors can provide to clients. The usual expression of the accounting equation is Assets = Liabilities + Owners' Equity. Another term for net worth is working capital. An accounting journal is a chronological list of transactions, each assigned to a particular account. The five-step process that takes a transaction from being mere raw financial data to its being summarized in the financial statements is called the accounting cycle. The balance sheet summarizes a firm's financial position over a period of time, for instance 3 months or a year. Accounting involves the _____ of the financial activities for firms. Accounting provides a framework for looking at: Managerial accounting provides all of the following financial information EXCEPT: Managerial accounting provides information that would probably be most beneficial to: _____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm. To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as: The Financial Accounting Standards Board (FASB) is a: International accounting standards: A(n) _____ is a yearly document that describes a firm's financial status and usually discusses a firm's financial activities during the past year and its prospects for the future. Which of the following statements about the accounting profession is true? An alphabetic listing of the names and GPAs of everyone in your class is an example of data. A local area network (LAN) connects computers at one site and enables their users to exchange data and share hardware and software from a variety of computer manufacturers. The Internet is essentially a worldwide wide area network (WAN). Intranets, VPNS, and extranets are forms of LANs. Like local area networks (LANs), intranets are private corporate networks. An enterprise portal is an internal Web site that provides proprietary corporate information to a defined user group. Virtual private networks can be used to connect two or more LANS. ASPs, which are also called area server portals, provide computer users with access to e-commerce opportunities. When a bank collects deposits during the day, then deposits them all after banking hours, it is using a reserve processing system. An accounts clerk who is able to record a payment of 50 dollars into the company's main computer system as the payment is made is using an online processing system.