Accounting 2021 Final Exam Prep
◉ Accounting. Answer: The process by which financial information
about a business is recorded, classified, summarized, interpreted, and
communicated to owners, managers, and other interested parties
◉ Accounting system. Answer: A process designed to accumulate,
classify, and summarize financial data
◉ Auditing. Answer: The review of financial statements to assess their
fairness and adherence to generally accepted accounting principles
◉ Auditor's report. Answer: An independent accountant's review of a
firm's financial statements
◉ Certified Bookkeeper (CB). Answer: A designation that assures an
individual possesses the level of knowledge and skill needed to carry out
all key functions through the adjusted trial balance, including payroll
◉ Certified public accountant (CPA). Answer: An independent
accountant who provides accounting services to the public for a fee
◉ Corporation. Answer: A publicly or privately owned business entity
that is separate from its owners and has a legal right to own property and
do business in its own name; stockholders are not responsible for the
debts or taxes of the business
◉ Accounting. Answer: The process by which financial information
about a business is recorded, classified, summarized, interpreted, and
communicated to owners, managers, and other interested parties
◉ Accounting system. Answer: A process designed to accumulate,
classify, and summarize financial data
◉ Auditing. Answer: The review of financial statements to assess their
fairness and adherence to generally accepted accounting principles
◉ Auditor's report. Answer: An independent accountant's review of a
firm's financial statements
◉ Certified Bookkeeper (CB). Answer: A designation that assures an
individual possesses the level of knowledge and skill needed to carry out
all key functions through the adjusted trial balance, including payroll
◉ Certified public accountant (CPA). Answer: An independent
accountant who provides accounting services to the public for a fee
◉ Corporation. Answer: A publicly or privately owned business entity
that is separate from its owners and has a legal right to own property and
do business in its own name; stockholders are not responsible for the
debts or taxes of the business
