ACCOUNTING - D196 – QUESTIONS WITH 100% CORRECT ANSWERS|100% verified

ACCOUNTING - D196 – QUESTIONS WITH 100% CORRECT ANSWERS What is the primary difference between managerial accounting and financial accounting? CORRECT ANSWER Managerial is internal to an organization and Financial is externally facing Define bookkeeping CORRECT ANSWER The preservation of a systematic, quantitative record of an activity What is a tool for evaluating the health and performance of an organization that predates writing? CORRECT ANSWER Bookkeeping What are the three primary functions of an accounting system? CORRECT ANSWER 1. Analysis of events/transactions 2. Routine bookkeeping 3. Structuring data for evaluation What is the primary purpose of accounting? CORRECT ANSWER To facilitate future action/decision-making What is an economic entity? CORRECT ANSWER It may be an individual, a business enterprise, or a nonprofit What are the four steps of the decision-making process? CORRECT ANSWER 1. Identify the issue 2. Gather information 3. Identify alternatives 4. Select the option that will most likely result in the desired objective What are the three sources of capital? CORRECT ANSWER 1. Investors 2. Creditors 3. Earnings What are the two key roles of accountants? CORRECT ANSWER 1. Measure and report the results of business activities 2. Advise decision makers Which financial statement is considered the "most basic report?" CORRECT ANSWER The balance sheet Which financial statement answers the question, "how much profit did we make?" CORRECT ANSWER The income statement