Accounting Overview
Save
Accounting - (correct Answer) - Recording, classifying, summarizing and interpreting financial events and
transactions
-to provide managers and stakeholders with information so they can make well-informed decisions
-financial reports and statements tell us about the financial health of the company
Types of Accounting and Accountants - (correct Answer) - -managerial: provides information and analysis
to managers in the organization
~ it involves measuring and reporting the costs of production and marketing budgeting and minimizing
taxes
-financial: provides information and analysis to managers and people outside of the organization
-there are private and public accountants
ACCOUNTING SYSTEM - (correct Answer) - -the method used to record and summarize accounting data
into financial reports
~accounting documents are inputs
~ processing includes recording, classifying, and summarizing document information
~outputs are the financial statements
The Accounting Cycle - (correct Answer) - -a six step procedure that results in the preparation and
analysis of the financial statements
FASB, GAAP, SEC - (correct Answer) - FASB: financial accounting standards board (FASB)
GAAP: generally acccepted accounting principles
SEC: securities and exchange commission
Auditing - (correct Answer) - -reviewing and evaluating the information used to prepare a company's
financial statements (unbiased opinion by a third party accounting firm, about the accuracy of a
company's financial statements)
Save
Accounting - (correct Answer) - Recording, classifying, summarizing and interpreting financial events and
transactions
-to provide managers and stakeholders with information so they can make well-informed decisions
-financial reports and statements tell us about the financial health of the company
Types of Accounting and Accountants - (correct Answer) - -managerial: provides information and analysis
to managers in the organization
~ it involves measuring and reporting the costs of production and marketing budgeting and minimizing
taxes
-financial: provides information and analysis to managers and people outside of the organization
-there are private and public accountants
ACCOUNTING SYSTEM - (correct Answer) - -the method used to record and summarize accounting data
into financial reports
~accounting documents are inputs
~ processing includes recording, classifying, and summarizing document information
~outputs are the financial statements
The Accounting Cycle - (correct Answer) - -a six step procedure that results in the preparation and
analysis of the financial statements
FASB, GAAP, SEC - (correct Answer) - FASB: financial accounting standards board (FASB)
GAAP: generally acccepted accounting principles
SEC: securities and exchange commission
Auditing - (correct Answer) - -reviewing and evaluating the information used to prepare a company's
financial statements (unbiased opinion by a third party accounting firm, about the accuracy of a
company's financial statements)
