Accounting 2021 CPA Study Guide
⏹ Accounting. Answer: The information system that measures business
activities, process the information into reports, and communicates the
results to decision makers.
⏹ Financial Accounting. Answer: The field of accounting that focuses
on providing information for external decision makers.
⏹ Managerial Accounting. Answer: The field of accounting that focuses
on providing information for internal decision makers.
⏹ Creditor. Answer: Any person or business to whom a business owes
money.
⏹ Certified Public Accountants (CPAs). Answer: Licensed professional
accountants who serve the general public.
⏹ Certified Management Accountants (CMAs). Answer: Certified
professionals who specialize in accounting and financial management
knowledge.
⏹ What kind of professional accountant typically only work for a single
company?. Answer: CMA
, ⏹ Financial Accounting Standards Board (FASB). Answer: The private
organization that oversees the creation and governance of accounting
standards in the United States.
⏹ Securities And Exchange Commission (SEC). Answer: U.S.
governmental agency that oversees the U.S. financial markets.
⏹ Generally Accepted Accounting Principles (GAAP). Answer:
Accounting guidelines, currently formulated by the FASB; the main
U.S. accounting rule book.
⏹ Faithful Representation. Answer: Providing information that is
complete, neutral, and free from error.
⏹ Entity. Answer: One business separate from its owner.
⏹ Economic Entity Assumption. Answer: An organization that stands
apart as a separate economic unit.
⏹ Sole Proprietorship. Answer: A business with a single owner.
⏹ Partnership. Answer: A business with two or more owners and not
organized as a corporation.
⏹ Corporation. Answer: A business organized under state law that is a
separate legal entity.
⏹ Accounting. Answer: The information system that measures business
activities, process the information into reports, and communicates the
results to decision makers.
⏹ Financial Accounting. Answer: The field of accounting that focuses
on providing information for external decision makers.
⏹ Managerial Accounting. Answer: The field of accounting that focuses
on providing information for internal decision makers.
⏹ Creditor. Answer: Any person or business to whom a business owes
money.
⏹ Certified Public Accountants (CPAs). Answer: Licensed professional
accountants who serve the general public.
⏹ Certified Management Accountants (CMAs). Answer: Certified
professionals who specialize in accounting and financial management
knowledge.
⏹ What kind of professional accountant typically only work for a single
company?. Answer: CMA
, ⏹ Financial Accounting Standards Board (FASB). Answer: The private
organization that oversees the creation and governance of accounting
standards in the United States.
⏹ Securities And Exchange Commission (SEC). Answer: U.S.
governmental agency that oversees the U.S. financial markets.
⏹ Generally Accepted Accounting Principles (GAAP). Answer:
Accounting guidelines, currently formulated by the FASB; the main
U.S. accounting rule book.
⏹ Faithful Representation. Answer: Providing information that is
complete, neutral, and free from error.
⏹ Entity. Answer: One business separate from its owner.
⏹ Economic Entity Assumption. Answer: An organization that stands
apart as a separate economic unit.
⏹ Sole Proprietorship. Answer: A business with a single owner.
⏹ Partnership. Answer: A business with two or more owners and not
organized as a corporation.
⏹ Corporation. Answer: A business organized under state law that is a
separate legal entity.
