Principles of Accounting - VYC1 Exam
UPDATED QUESTIONS AND CORRECT
ANSWERS
The Need for Financial Information - CORRECT ANSWER As your business grows, you will
need even more financial information to evaluate the firm's performance and make decisions about the
future. An efficient accounting system allows owners and managers to quickly obtain a wide range of
useful information. The need for timely information is one reason that businesses have an accounting
system directed by a professional staff.
Accounting - CORRECT ANSWER The process by which financial information about a
business is recorded, classified, summarized, interpreted, and communicated to owners, managers,
and other interested parties
Accounting system - CORRECT ANSWER is designed to accumulate data about a firm's
financial affairs, classify the data in a meaningful way, and summarize it in periodic reports called
financial statements
Financial statements - CORRECT ANSWER Periodic reports of a firm's financial position or
operating results.
The accountant: - CORRECT ANSWER establishes the records and procedures that make up
the accounting system,
supervises the operations of the system,
interprets the resulting financial information.
The accountant: - CORRECT ANSWER Today accountants provide a wide range of services,
including financial planning, investment advice, accounting and tax software advice, and profitability
consulting.
UPDATED QUESTIONS AND CORRECT
ANSWERS
The Need for Financial Information - CORRECT ANSWER As your business grows, you will
need even more financial information to evaluate the firm's performance and make decisions about the
future. An efficient accounting system allows owners and managers to quickly obtain a wide range of
useful information. The need for timely information is one reason that businesses have an accounting
system directed by a professional staff.
Accounting - CORRECT ANSWER The process by which financial information about a
business is recorded, classified, summarized, interpreted, and communicated to owners, managers,
and other interested parties
Accounting system - CORRECT ANSWER is designed to accumulate data about a firm's
financial affairs, classify the data in a meaningful way, and summarize it in periodic reports called
financial statements
Financial statements - CORRECT ANSWER Periodic reports of a firm's financial position or
operating results.
The accountant: - CORRECT ANSWER establishes the records and procedures that make up
the accounting system,
supervises the operations of the system,
interprets the resulting financial information.
The accountant: - CORRECT ANSWER Today accountants provide a wide range of services,
including financial planning, investment advice, accounting and tax software advice, and profitability
consulting.
