Accounting Principles and Practices Quiz

Accounting can be divided into several fields including financial accounting, management accounting, tax accounting, and cost accounting.

Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to external users of the information such as investors, regulators, and suppliers.

The main purpose of accounting is to measure the results of an organization's economic activities and convey this information to stakeholders such as investors, creditors, management, and regulators.

<p>Management accounting focuses on the measurement, analysis, and reporting of information for internal use by management.</p> Signup and view all the answers

<p>Practitioners of accounting are known as accountants.</p> Signup and view all the answers

<p>An actual reduction in the fair value of an asset and the allocation of the original cost to periods in which the asset is used</p> Signup and view all the answers

<p>It decreases the value of the asset</p> Signup and view all the answers

<p>To accurately reflect the decrease in value of the asset over its useful life span</p> Signup and view all the answers

<p>It affects the net income reported</p> Signup and view all the answers

<p>Among the periods in which the asset is expected to be used</p> Signup and view all the answers

<p>Reduction in fair value of an asset and allocation of original cost to periods of use</p> Signup and view all the answers

<p>It decreases the value of the asset</p> Signup and view all the answers

<p>For both accounting and tax purposes</p> Signup and view all the answers

<p>It affects the net income</p> Signup and view all the answers

<p>Depreciation expense among the periods in which the asset is expected to be used</p> Signup and view all the answers