Chapter 1 Office accounting

A person who records, sorts, and files accounting information in accounting records may be referred to as a(n)

Accounting clerk

Examining a transaction or event to determine its fundamental significance to the business so that the relevant information may be properly processed is called

Analyzing

Cost accountants provide a wide variety of services including

Analyzing the cost effectiveness of products produced and services provided.

Which of the following types of business is owned by stockholders?

Corporation

Cost accounting is used to develop a financial plan for a company.

False

Creditors need detailed measure of business performance.

False

Interpreting refers to reviewing events that have taken place and determining how they affect a business.

False

The principal accounting officer of a company is called a public accountant.

False

Writing or using one of the latest technological advances to enter a transaction in the accounting records is called summarizing.

False

A person who reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate and are being followed may be referred to as a(n)

Internal Auditor

Public accountants do NOT offer which of the following services?

Market Analysis

The accounting function of classifying is

Sorting and grouping similar items together.

Bringing together various items of information to determine or explain a result is

Summarizing

A public accountant can achieve professional recognition as a Certified Public Accountant by meeting certain educational and experience requirements as determined by each state.

True

Accountants design accounting information systems and analyze and interpret information.

True

Because financial information is communicated in accounting terms, accounting is said to be the "language of business."

True

Owners are most interested in a company's profitability and current financial performance.

True

Stockholders may have very little influence on business decisions.

True

The Financial Accounting Standards Board develops generally accepted accounting principles to provide some assurance that companies are reporting business activities in a similar manner.

True

The purpose of accounting is to provide financial information about the current operations and financial conditions of a business to individuals and organizations.

True