Specialized Accounting Fields Quiz

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What is the main difference between Private Accounting and Public Accounting?

Private Accounting provides accounting services to private companies, while Public Accounting provides accounting services to the general public.

Who is the executive officer in charge of accounting activity in Private Accounting?

The executive officer in charge of accounting activity in Private Accounting is known as comptroller/controller.

What services do Public Accountants typically provide?

Public Accountants provide services such as taxation, auditing, and management advising to clients.

Where do Government Accountants work and what services do they provide?

Government Accountants work in government units like LGUs, Bangko Sentral ng Pilipinas, and BIR, and provide services as auditors, budget officers, or consultants. Signup and view all the answers

What is the main responsibility of an auditor?

To examine whether the financial statements are in accordance to generally accepted accounting principles (GAAP) and give opinion as to the accuracy and fairness of presentation of accounting data. Signup and view all the answers

Who can practice the profession of Research and Education in Accountancy?

Only CPAs can practice the profession of Research and Education in Accountancy. Signup and view all the answers

Describe the role of Cost Accounting in a business.

Responsible for classifying, recording, and allocating expenditures to determine the budget and profitability of products or departments. Signup and view all the answers

What type of information does Management Accounting provide to internal management?

Cost information for the purposes of planning, controlling, and decision making. Signup and view all the answers

What is the primary focus of Tax Accounting?

Offering advice on tax, calculating tax liability, completing tax returns, and advising on tax-efficient business decisions. Signup and view all the answers

What is a key requirement for Accountants in Research and Education to continue practicing?

Accountants in Research and Education are required to enhance their knowledge through continuous education. Signup and view all the answers

What is the main concern of Financial Accounting?

Preparation and interpretation of financial statements primarily for external users. Signup and view all the answers

How does Government Accounting differ from other specialized accounting fields?

It focuses on the proper use of public funds for the service of the people and not for profit. Signup and view all the answers

What are the key components that make up the term 'Generally Accepted Accounting Principles (GAAP)'?

The key components that make up GAAP are the rules, procedures, and practices followed in the accumulation, preparation, and presentation of accounting data in financial statements. Signup and view all the answers

What are the two main qualitative characteristics of financial statement information that make it relevant?

The two main qualitative characteristics of financial statement information that make it relevant are: 1) It has the capacity to make a difference in the decision-making process of entrepreneurs and managers, and 2) It helps data users in predicting the outcome of different business undertakings. Signup and view all the answers

How does the principle of prudence or conservatism impact the reliability of financial information?

The principle of prudence or conservatism has a direct impact on the reliability of financial information by ensuring that the information is neutral, free from bias and error, and complete. Signup and view all the answers

How can management accounting information help in predicting the outcome of different business undertakings?

Management accounting information can help in predicting the outcome of different business undertakings by providing relevant and reliable data that can be used to make informed decisions. This information can include budgets, forecasts, and analysis of past performance. Signup and view all the answers

Explain how the understandability qualitative characteristic of financial information is achieved.

The understandability qualitative characteristic of financial information is achieved by ensuring that the information is intelligible and comprehensible, not just to business executives and stockholders, but also to the general public. This is done by presenting the information in a business language that all data users can understand. Signup and view all the answers

What is the role of tax accounting in ensuring the accuracy and compliance of financial information?

Tax accounting plays a crucial role in ensuring the accuracy and compliance of financial information by applying the appropriate tax laws and regulations to the recording and reporting of financial transactions. This helps to ensure that the financial statements accurately reflect the tax implications of the business's activities. Signup and view all the answers