David Haddock/John Price, College Accounting
Chapters 1 - 30, 17th Edition TEST BANK,
Accounting - ANSWER: The process by which financial information is recorded for
both business and personal use
What is the GAAP - ANSWER: Generally accepted accounting principles - Accounting
standards developed and applied by professional accountants
Why should a company comply with the GAAP? - ANSWER: Publicly owned
companies must follow the GAAP in order to demonstrate to the Securities and
Exchange Commission that they are following proper accounting standards
Define Accounting - ANSWER: Accounting is 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: An accounting system is designed to accumulate data
about a firm's financial affairs, classify the data in a meaningful way, and summarize
it in periodic reports called financial statements
Financial Statements - ANSWER: Financial Statements are periodic reports that
summarize the data accumulated and classified in an accounting system
Identify career opportunities in accounting - ANSWER: Bookkeeping
Accounting Clerks
Accountants
Bookkeeper - ANSWER: Bookkeepers are responsible for recording business
transactions. In large firms, they may also supervise the work of accounting clerks.
Bookkeeper positions usually require one to two years of accounting courses and
little or no experience
Accounting Clerk - ANSWER: Responsible for record keeping for a part of the
accounting system such as payroll, accounts receivable, or accounts payable
Accounting clerk positions usually require one to two accounting courses and little or
no experience
Accountant - ANSWER: Usually Supervise bookkeepers and prepare the financial
statements and reports of the business
, Accountant positions usually require a bachelor's degree but are sometimes filled by
experienced bookkeepers or individuals with a two-year college degree. Most entry-
level accountant positions do not have an experience requirement. Both the
education and experience requirements for accountant positions vary according to
the size of the firm.
What three areas do accountants typically choose to practice in - ANSWER: Public
accounting
managerial accounting
governmental accounting
Public accountants - ANSWER: Work for public accounting firms whcih provide
accounting services for other companies.
Usually, public accounting firms offer three services: --- -auditing
-tax accounting
-management advisory services
What is the "Big Four" - ANSWER: The largest public accounting firms in the United
States.
Deloitte & Touche
Ernst & Young
KPMG
PricewaterhouseCoopers
What is a CPA - ANSWER: A CPA is a certified public accountant. To become a CPA,
you must:
have a certain number of college credits in accounting courses
demonstrate good personal character
pass the Uniform CPA Examination
fulfill the experience requirements of the stat of practice
and follow the professional code of ethics
Chapters 1 - 30, 17th Edition TEST BANK,
Accounting - ANSWER: The process by which financial information is recorded for
both business and personal use
What is the GAAP - ANSWER: Generally accepted accounting principles - Accounting
standards developed and applied by professional accountants
Why should a company comply with the GAAP? - ANSWER: Publicly owned
companies must follow the GAAP in order to demonstrate to the Securities and
Exchange Commission that they are following proper accounting standards
Define Accounting - ANSWER: Accounting is 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: An accounting system is designed to accumulate data
about a firm's financial affairs, classify the data in a meaningful way, and summarize
it in periodic reports called financial statements
Financial Statements - ANSWER: Financial Statements are periodic reports that
summarize the data accumulated and classified in an accounting system
Identify career opportunities in accounting - ANSWER: Bookkeeping
Accounting Clerks
Accountants
Bookkeeper - ANSWER: Bookkeepers are responsible for recording business
transactions. In large firms, they may also supervise the work of accounting clerks.
Bookkeeper positions usually require one to two years of accounting courses and
little or no experience
Accounting Clerk - ANSWER: Responsible for record keeping for a part of the
accounting system such as payroll, accounts receivable, or accounts payable
Accounting clerk positions usually require one to two accounting courses and little or
no experience
Accountant - ANSWER: Usually Supervise bookkeepers and prepare the financial
statements and reports of the business
, Accountant positions usually require a bachelor's degree but are sometimes filled by
experienced bookkeepers or individuals with a two-year college degree. Most entry-
level accountant positions do not have an experience requirement. Both the
education and experience requirements for accountant positions vary according to
the size of the firm.
What three areas do accountants typically choose to practice in - ANSWER: Public
accounting
managerial accounting
governmental accounting
Public accountants - ANSWER: Work for public accounting firms whcih provide
accounting services for other companies.
Usually, public accounting firms offer three services: --- -auditing
-tax accounting
-management advisory services
What is the "Big Four" - ANSWER: The largest public accounting firms in the United
States.
Deloitte & Touche
Ernst & Young
KPMG
PricewaterhouseCoopers
What is a CPA - ANSWER: A CPA is a certified public accountant. To become a CPA,
you must:
have a certain number of college credits in accounting courses
demonstrate good personal character
pass the Uniform CPA Examination
fulfill the experience requirements of the stat of practice
and follow the professional code of ethics
