ACCOUNTING V. BOOKKEEPING
REVIEW EXAM GUIDE QUESTIONS
WITH CORRECT ANSWERS
Accounting - ANSWER-The recording, measurement and interpretation of financial
information
Bookkeeping - ANSWER-Typically limited to the routine, day-to-day recording of
business transactions
Difference between accounting and bookkeeping - ANSWER-Bookkeeping is
responsible for obtaining and recording the information that accountants require to
analyze a firm's financial position
required credentials in public accounting - ANSWER-Work with a range of clients to
prepare financials documents that an individual or corporation is required to disclose to
the public
Responsible for checking the accuracy of corporate and personal records in order to
prepare tax filings
Public companies must follow the principles and rules set out in the IFRS
required credentials in private accounting - ANSWER-Deal with the financial information
of the specific company they work for - preparing or analyzing reports for an internal
manager
Private companies - must choose to follow either IFRS or ASPE
Assets - ANSWER-Firm's economic resources, or items of value that it owns
Liabilities - ANSWER-Debts that a firm owes to others
Owners equity - ANSWER-Equals assets minus liabilities and reflects historical values
IFRS - ANSWER-International Financial Reporting Standards
To make required reporting comparable across international jurisdictions
Creditors - ANSWER-A person or company to whom money is owed
Stakeholders - ANSWER-Groups that have a stake in the success and outcomes of a
business
REVIEW EXAM GUIDE QUESTIONS
WITH CORRECT ANSWERS
Accounting - ANSWER-The recording, measurement and interpretation of financial
information
Bookkeeping - ANSWER-Typically limited to the routine, day-to-day recording of
business transactions
Difference between accounting and bookkeeping - ANSWER-Bookkeeping is
responsible for obtaining and recording the information that accountants require to
analyze a firm's financial position
required credentials in public accounting - ANSWER-Work with a range of clients to
prepare financials documents that an individual or corporation is required to disclose to
the public
Responsible for checking the accuracy of corporate and personal records in order to
prepare tax filings
Public companies must follow the principles and rules set out in the IFRS
required credentials in private accounting - ANSWER-Deal with the financial information
of the specific company they work for - preparing or analyzing reports for an internal
manager
Private companies - must choose to follow either IFRS or ASPE
Assets - ANSWER-Firm's economic resources, or items of value that it owns
Liabilities - ANSWER-Debts that a firm owes to others
Owners equity - ANSWER-Equals assets minus liabilities and reflects historical values
IFRS - ANSWER-International Financial Reporting Standards
To make required reporting comparable across international jurisdictions
Creditors - ANSWER-A person or company to whom money is owed
Stakeholders - ANSWER-Groups that have a stake in the success and outcomes of a
business
