5 Questions
Who are the practitioners of accounting known as?
Accountants
Which field of accounting is concerned with reporting financial information to external users?
Financial accounting
What is management accounting primarily focused on?
Measurement, analysis, and reporting of information for internal management use
What is the primary purpose of accounting?
To process information about economic entities
Who are typically the users of the information provided by financial accounting?
Investors, regulators, and suppliers
Study Notes
Accounting Overview
- Accounting is the processing of information about economic entities, such as businesses and corporations.
- It measures the results of an organization's economic activities and conveys this information to stakeholders, including investors, creditors, management, and regulators.
Accounting Fields
- Accounting can be divided into several fields, including:
- Financial accounting
- Management accounting
- Tax accounting
- Cost accounting
Financial Accounting
- Focuses on the reporting of an organization's financial information.
- Includes the preparation of financial statements for external users, such as:
- Investors
- Regulators
- Suppliers
Management Accounting
- Focuses on the measurement, analysis, and reporting of information for internal use by management.
- Involves the recording of financial transactions to provide summaries for internal decision-making.
Test your knowledge of accounting concepts with this quiz! Explore topics such as financial statements, balance sheets, income statements, and more. See how well you understand the principles and practices of this essential business discipline.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
