Specialized Accounting Fields Quiz

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

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

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

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

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.

Only CPAs can practice the profession of Research and Education in Accountancy.

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

Cost information for the purposes of planning, controlling, and decision making.

Offering advice on tax, calculating tax liability, completing tax returns, and advising on tax-efficient business decisions.

Accountants in Research and Education are required to enhance their knowledge through continuous education.

Preparation and interpretation of financial statements primarily for external users.

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

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.

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.

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.

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.

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.

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.