ACCOUNTING QUESTIONS WITH
CORRECT ANSWERS 2025/2026
What r is r accounting? r - r CORRECT r ANSWER r -
Accounting ris rthe rinformation rsystem rthat rmeasures rbusiness ractivities, rprocesses rthe rinformation
rinto rreports, rand rcommunicates rthe rresults rto rdecision rmakers. rAccounting ris rthe rlanguage rof
rbusiness.
Briefly r describe r the r two r major r fields rof raccounting. r - r CORRECT r ANSWER r -
Financial raccounting rprovides rinformation rfor rexternal rdecision rmakers, rsuch ras routside
rinvestors, rlend rers, rcustomers, rand rthe rfederal rgovernment. rManagerial raccounting rfocuses ron
rinformation rfor rinternal rdecision rmakers, rsuch ras rthe rcompany's rmanagers rand remployees.
Describe rthe rvarious rtypes rof rindividuals rwho ruse raccounting rinformation rand rhow rthey ruse
rthat rinfor rmation rto rmake rimportant rdecisions. r- rCORRECT rANSWER r-
Individuals ruse raccounting rinformation rto rhelp rthem rmanage rtheir rmoney, revaluate ra rnew rjob,
rand rbet rter rdecide rwhether rthey rcan rafford rto rmake ra rnew rpurchase. rBusiness rowners ruse
raccounting rinformati ron rto rset rgoals, rmeasure rprogress rtoward rthose rgoals, rand rmake
radjustments rwhen rneeded. rInvestors ruse raccounting rinformation rto rhelp rthem rdecide rwhether
ror rnot ra rcompany ris ra rgood rinvestment rand
once rthey rhave rinvested, rthey ruse ra rcompany's rfinancial rstatements rto ranalyze rhow rtheir
rinvestment ris rperforming. rCreditors ruse raccounting rinformation r to rdecide rwhether rto r lend
rmoney r to r a rbusiness r and r to revaluate ra rcompany's rability rto rmake rthe rloan rpayments. rTaxing
rauthorities ruse raccounting rinformati ron rto rcalculate rthe ramount rof rincome rtax rthat ra rcompany
rhas rto rpay.
, What rare rtwo rcertifications ravailable rfor raccountants?Briefly rexplain reach rcertification. r-
rCORRECT rANSWER r-
Certified rPublic rAccountants r(CPAs) rare rlicensed rprofessional raccountants rwho rserve rthe rgeneral
rpublic. rThey rwork rfor rpublic raccounting rfirms, rbusinesses, rgovernment, ror reducational
rinstitutions. rTo rbe rcerti rfied rthey rmust rmeet reducational rand/or rexperience rrequirements rand
rpass ran rexam.
Certified rManagement rAccountants r(CMAs) rspecialize rin raccounting rand rfinancial rmanagement
rknowle rdge. rThey rwork rfor ra rsingle rcompany.
What r is r the r role r of rthe r Financial r Accounting r Standards r Board r(FASB)? r - r CORRECT rANSWER r -
The rFASB roversees rthe rcreation rand rgovernance rof raccounting rstandards. rThey rwork rwith
rgovernmenta r l rregulatory ragencies, rcongressionally rcreated rgroups, rand rprivate rgroups.
CORRECT ANSWERS 2025/2026
What r is r accounting? r - r CORRECT r ANSWER r -
Accounting ris rthe rinformation rsystem rthat rmeasures rbusiness ractivities, rprocesses rthe rinformation
rinto rreports, rand rcommunicates rthe rresults rto rdecision rmakers. rAccounting ris rthe rlanguage rof
rbusiness.
Briefly r describe r the r two r major r fields rof raccounting. r - r CORRECT r ANSWER r -
Financial raccounting rprovides rinformation rfor rexternal rdecision rmakers, rsuch ras routside
rinvestors, rlend rers, rcustomers, rand rthe rfederal rgovernment. rManagerial raccounting rfocuses ron
rinformation rfor rinternal rdecision rmakers, rsuch ras rthe rcompany's rmanagers rand remployees.
Describe rthe rvarious rtypes rof rindividuals rwho ruse raccounting rinformation rand rhow rthey ruse
rthat rinfor rmation rto rmake rimportant rdecisions. r- rCORRECT rANSWER r-
Individuals ruse raccounting rinformation rto rhelp rthem rmanage rtheir rmoney, revaluate ra rnew rjob,
rand rbet rter rdecide rwhether rthey rcan rafford rto rmake ra rnew rpurchase. rBusiness rowners ruse
raccounting rinformati ron rto rset rgoals, rmeasure rprogress rtoward rthose rgoals, rand rmake
radjustments rwhen rneeded. rInvestors ruse raccounting rinformation rto rhelp rthem rdecide rwhether
ror rnot ra rcompany ris ra rgood rinvestment rand
once rthey rhave rinvested, rthey ruse ra rcompany's rfinancial rstatements rto ranalyze rhow rtheir
rinvestment ris rperforming. rCreditors ruse raccounting rinformation r to rdecide rwhether rto r lend
rmoney r to r a rbusiness r and r to revaluate ra rcompany's rability rto rmake rthe rloan rpayments. rTaxing
rauthorities ruse raccounting rinformati ron rto rcalculate rthe ramount rof rincome rtax rthat ra rcompany
rhas rto rpay.
, What rare rtwo rcertifications ravailable rfor raccountants?Briefly rexplain reach rcertification. r-
rCORRECT rANSWER r-
Certified rPublic rAccountants r(CPAs) rare rlicensed rprofessional raccountants rwho rserve rthe rgeneral
rpublic. rThey rwork rfor rpublic raccounting rfirms, rbusinesses, rgovernment, ror reducational
rinstitutions. rTo rbe rcerti rfied rthey rmust rmeet reducational rand/or rexperience rrequirements rand
rpass ran rexam.
Certified rManagement rAccountants r(CMAs) rspecialize rin raccounting rand rfinancial rmanagement
rknowle rdge. rThey rwork rfor ra rsingle rcompany.
What r is r the r role r of rthe r Financial r Accounting r Standards r Board r(FASB)? r - r CORRECT rANSWER r -
The rFASB roversees rthe rcreation rand rgovernance rof raccounting rstandards. rThey rwork rwith
rgovernmenta r l rregulatory ragencies, rcongressionally rcreated rgroups, rand rprivate rgroups.
