Accounting 1301 Chapter 1 Exam Questions with Correct Answers Latest Update 2025/2026
Accounting - Answers is the process by which financial information about a business is
recorded, classified, summarized, interpreted, and communicated to owners, managers, and
other interested parties.
What is Accounting often called? - Answers "The Language of Business"
Accounting System - Answers is designed to accumulate data about a firm's financial
affairs,classify the data in a meaningful way, and summarize it in periodic tables called financial
statements.
What are bookkeepers responsible for? - Answers -Recording business transactions & in larger
firms, they may supervise accounting clerks
- Usually require one to two years of accounting education plus experience as an accounting
clerk
certified bookkeeper (CB) - Answers a designation that assures an individual possesses the
level knowledge and skills required to carry out all key accounting functions through adjusted
trial balance, including payroll.
How do you become a cb? - Answers -Pass the national certified bookkeeper exam, sign a code
of ethics, & submit evidence of at least two years of full time bookkeeping experience or 3,000
hours of part-time or freelance experience
- CB exam: Consisted of 4 parts
(1) Adjustments and Error Corrections
(2) Payroll and depreciation
(3) Inventory
(4) Internal Control and Fraud Prevention
Accounting Clerk - Answers - responsible for the recordkeeping part of the accounting system-
perhaps payroll, accounts payable, and accounts receivable
- Usually require one to two accounting courses and little to no experience
Accountants - Answers -supervise bookkeepers and prepare financial statements and reports of
, the business
- Usually require a bachelor's degree but sometimes filled with experiences bookkeepers or
individuals with two-year college degree
- Practice in one of the three areas: public, managerial, governmental
Public Accountant (PA) - Answers Works at public accounting firms
- Offers auditing, tax accounting, management advisory services
- Many are Certified Public Accountants (CPAS)
To become a Certified Public Accountant - Answers Certain number of college credits in
accounting, demonstrate good character, pass the Uniform CPA examination, and fulfill the
experience requirements of the state practice.
CPAs must follow professional code of ethics
Perform financial audits
Auditing - Answers The review of financial statements to assess their fairness and adherence to
generally accepted accounting principles. Accountants who are CPAs perform financial audits
Tax Accounting - Answers Involves tax compliance and tax planning
Tax Compliance- deals with the preparation of tax returns and audit of those returns
Tax Planning-
Involves giving advice to clients on how to structure their financial affairs in order to reduce
their tax liability
Management advisory services - Answers involve helping clients improve their information
systems or their business performance
Accounting - Answers is the process by which financial information about a business is
recorded, classified, summarized, interpreted, and communicated to owners, managers, and
other interested parties.
What is Accounting often called? - Answers "The Language of Business"
Accounting System - Answers is designed to accumulate data about a firm's financial
affairs,classify the data in a meaningful way, and summarize it in periodic tables called financial
statements.
What are bookkeepers responsible for? - Answers -Recording business transactions & in larger
firms, they may supervise accounting clerks
- Usually require one to two years of accounting education plus experience as an accounting
clerk
certified bookkeeper (CB) - Answers a designation that assures an individual possesses the
level knowledge and skills required to carry out all key accounting functions through adjusted
trial balance, including payroll.
How do you become a cb? - Answers -Pass the national certified bookkeeper exam, sign a code
of ethics, & submit evidence of at least two years of full time bookkeeping experience or 3,000
hours of part-time or freelance experience
- CB exam: Consisted of 4 parts
(1) Adjustments and Error Corrections
(2) Payroll and depreciation
(3) Inventory
(4) Internal Control and Fraud Prevention
Accounting Clerk - Answers - responsible for the recordkeeping part of the accounting system-
perhaps payroll, accounts payable, and accounts receivable
- Usually require one to two accounting courses and little to no experience
Accountants - Answers -supervise bookkeepers and prepare financial statements and reports of
, the business
- Usually require a bachelor's degree but sometimes filled with experiences bookkeepers or
individuals with two-year college degree
- Practice in one of the three areas: public, managerial, governmental
Public Accountant (PA) - Answers Works at public accounting firms
- Offers auditing, tax accounting, management advisory services
- Many are Certified Public Accountants (CPAS)
To become a Certified Public Accountant - Answers Certain number of college credits in
accounting, demonstrate good character, pass the Uniform CPA examination, and fulfill the
experience requirements of the state practice.
CPAs must follow professional code of ethics
Perform financial audits
Auditing - Answers The review of financial statements to assess their fairness and adherence to
generally accepted accounting principles. Accountants who are CPAs perform financial audits
Tax Accounting - Answers Involves tax compliance and tax planning
Tax Compliance- deals with the preparation of tax returns and audit of those returns
Tax Planning-
Involves giving advice to clients on how to structure their financial affairs in order to reduce
their tax liability
Management advisory services - Answers involve helping clients improve their information
systems or their business performance
