10 Questions
Which branch of accounting focuses on providing information to internal users such as managers and executives?
Management accounting
Which branch of accounting focuses on providing information to external users such as investors and creditors?
Financial accounting
Which branch of accounting focuses on the examination and verification of financial statements?
Auditing
Which branch of accounting focuses on the collection and analysis of financial data for tax purposes?
Tax accounting
Which branch of accounting focuses on determining the cost of producing goods or services?
Cost accounting
Accounting is a process of identifying, recording and communicating economic information that is useful in making economic ______
decisions
Only 'accountable events' are recorded in the ______ of accounts
books
Accountable events are those that affect the assets, ______, equity, income or expenses of a business
liabilities
The information processed in an accounting system is communicated to interested users through accounting ______ (e.g., financial statements)
reports
Accounting is considered the 'language of ______' because it is essential in the communication of financial information
business
Study Notes
Branches of Accounting
- Managerial accounting focuses on providing information to internal users such as managers and executives.
- Financial accounting focuses on providing information to external users such as investors and creditors.
- Auditing focuses on the examination and verification of financial statements.
- Tax accounting focuses on the collection and analysis of financial data for tax purposes.
- Cost accounting focuses on determining the cost of producing goods or services.
Accounting Fundamentals
- Accounting is a process of identifying, recording, and communicating economic information that is useful in making economic decisions.
- Only accountable events are recorded in the ledger of accounts.
- Accountable events are those that affect the assets, liabilities, equity, income, or expenses of a business.
- The information processed in an accounting system is communicated to interested users through accounting reports (e.g., financial statements).
- Accounting is considered the 'language of business' because it is essential in the communication of financial information.
Test your knowledge on the fundamentals of accounting in this quiz. Explore the process of identifying, recording, and communicating economic information for making informed decisions. Find out how accountable events impact a business's financial records and learn about the essential components of an accounting system.
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