15 Questions
Which type of accounting is done within the architectural practice?
Internal accounting
Who usually performs external accounting?
Independent accountant
What is the purpose of an audit?
To express an opinion on the financial position of the practice
What is the difference between a review and an audit?
A review is less extensive than an audit
What is the lowest level of assurance provided by the external accountant?
Compilation
What level of assurance do banks typically require?
Review
What does an audit provide?
Reasonable assurance of material misstatements
Which system of accounting records all income and expenses as they occur in the general ledger?
Accrual basis system
When setting up a new company, what does the firm need to decide on?
The fiscal year and how to record transactions
Which accounting method is required for architecture businesses by the Canada Revenue Agency (CRA), Accounting Standards for Private Enterprises (ASPE), and International Financial Reporting Standards (IFRS)?
Accrual basis system
What are the two different systems of accounting to record transactions?
Cash basis system and accrual basis system
Which type of financial report shows the current financial position of a business on a monthly basis?
Balance sheet
What is the purpose of accurate records in accounting?
To increase profit opportunities
When using an accounting software, what does a company need to select to record transactions?
The accounting method (cash or accrual)
What are the two types of financial reports prepared using the accrual system?
Statement of income and expenses, and balance sheet
Test your knowledge of accounting with this quiz! Learn about the process of recording financial transactions, assessing information, and producing financial statements. Explore the different types of accounting and their functions. Challenge yourself and improve your understanding of this essential field.
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