TEST BANK For College Accounting, A Practical Approach 14th
Canadian Edition, By Jeffrey Slater, Debra Good
What is the purpose of accounting? - ANSWER:Accounting is an information and
measurement system that identifies, records, and communicates relevant
information to help people make better decisions.
What is the relation between accounting and recordkeeping? - ANSWER:(also called
bookkeeping) is the recording of financial transactions and events, either manually
or electronically. Recordkeeping is essential to data reliability; but accounting is this
as well as much more. Accounting includes identifying, measuring, recording,
reporting, and analyzing business events and transactions.
Identify some advantages of technology for accounting. - ANSWER:Technology offers
increased accuracy, speed, efficiency and convenience in accounting.
Who are the internal and external users of accounting information? -
ANSWER:External users of accounting include lenders, shareholders, directors,
customers, suppliers, regulators, lawyers, brokers, and the press. Internal users of
accounting include managers, officers, and other internal decision makers involved
with strategic and operating decisions.
Identify at least 5 types of managers who are internal users of accounting
information. - ANSWER:research/development, purchasing, human resources,
production, distribution, marketing, and servicing
What is the nickname for "accounting?" - ANSWER:"The Language of Business"
Recordkeeping/bookkeeping - ANSWER:the recording of transactions and events
manually or electronically
Financial accounting - ANSWER:the area of accounting aimed at serving external
users by providing them with general purpose financial statements.
External Users - ANSWER:those not directly involved in running the organization
External Users (examples) - ANSWER:shareholders (investors)
lendors
directors
customers
suppliers
regulators
lawyers
brokers
press
, Lenders (creditors) - ANSWER:loan money or other resources to an organization.
Banks, savings and loans, co-ops, and mortgage and financial companies are lenders
Shareholders (investors) - ANSWER:the owners of a corporation. they use accounting
reports in deciding whether to buy, hold, sell stock
Technology in Accounting - ANSWER:technology reduces the time, effort and cost of
record keeping and also improves clerical accuracy
Directors - ANSWER:are typically elected to a board of directors to oversee their
interests in an organization. since directors are responsible to shareholders, their
information needs are similar
External (independent) Auditors - ANSWER:examine financial statements to verify
that they are prepared according to generally accepted accounting principals.
Nonexecutive employees and labor unions - ANSWER:use financial statements to
judge the fairness of wages, assess job prospects, and bargain for better wages
Regulators - ANSWER:often have legal authority over certain activities of
organizations. (IRS)
Voters, legislators, and government officials - ANSWER:use accounting information
to monitor and evaluate government receipts and expenses
Contributors - ANSWER:to nonprofit organizations use accounting information to
monitor and evaluate government receipts and expenses
Suppliers - ANSWER:use accounting information to judge the soundness of a
customer before making sales on credit.
Customers - ANSWER:use financial reports to assess the staying power of potential
suppliers
Internal Information Users - ANSWER:those directly involved in managing and
operating an organization. They use the information to help improve the efficiency
and effectiveness of the organization.
Internal Information Users (examples) - ANSWER:Research and Development
managers
Purchasing managers
Human Resource managers
Production managers
Distribution managers
Marketing managers
Service managers
Canadian Edition, By Jeffrey Slater, Debra Good
What is the purpose of accounting? - ANSWER:Accounting is an information and
measurement system that identifies, records, and communicates relevant
information to help people make better decisions.
What is the relation between accounting and recordkeeping? - ANSWER:(also called
bookkeeping) is the recording of financial transactions and events, either manually
or electronically. Recordkeeping is essential to data reliability; but accounting is this
as well as much more. Accounting includes identifying, measuring, recording,
reporting, and analyzing business events and transactions.
Identify some advantages of technology for accounting. - ANSWER:Technology offers
increased accuracy, speed, efficiency and convenience in accounting.
Who are the internal and external users of accounting information? -
ANSWER:External users of accounting include lenders, shareholders, directors,
customers, suppliers, regulators, lawyers, brokers, and the press. Internal users of
accounting include managers, officers, and other internal decision makers involved
with strategic and operating decisions.
Identify at least 5 types of managers who are internal users of accounting
information. - ANSWER:research/development, purchasing, human resources,
production, distribution, marketing, and servicing
What is the nickname for "accounting?" - ANSWER:"The Language of Business"
Recordkeeping/bookkeeping - ANSWER:the recording of transactions and events
manually or electronically
Financial accounting - ANSWER:the area of accounting aimed at serving external
users by providing them with general purpose financial statements.
External Users - ANSWER:those not directly involved in running the organization
External Users (examples) - ANSWER:shareholders (investors)
lendors
directors
customers
suppliers
regulators
lawyers
brokers
press
, Lenders (creditors) - ANSWER:loan money or other resources to an organization.
Banks, savings and loans, co-ops, and mortgage and financial companies are lenders
Shareholders (investors) - ANSWER:the owners of a corporation. they use accounting
reports in deciding whether to buy, hold, sell stock
Technology in Accounting - ANSWER:technology reduces the time, effort and cost of
record keeping and also improves clerical accuracy
Directors - ANSWER:are typically elected to a board of directors to oversee their
interests in an organization. since directors are responsible to shareholders, their
information needs are similar
External (independent) Auditors - ANSWER:examine financial statements to verify
that they are prepared according to generally accepted accounting principals.
Nonexecutive employees and labor unions - ANSWER:use financial statements to
judge the fairness of wages, assess job prospects, and bargain for better wages
Regulators - ANSWER:often have legal authority over certain activities of
organizations. (IRS)
Voters, legislators, and government officials - ANSWER:use accounting information
to monitor and evaluate government receipts and expenses
Contributors - ANSWER:to nonprofit organizations use accounting information to
monitor and evaluate government receipts and expenses
Suppliers - ANSWER:use accounting information to judge the soundness of a
customer before making sales on credit.
Customers - ANSWER:use financial reports to assess the staying power of potential
suppliers
Internal Information Users - ANSWER:those directly involved in managing and
operating an organization. They use the information to help improve the efficiency
and effectiveness of the organization.
Internal Information Users (examples) - ANSWER:Research and Development
managers
Purchasing managers
Human Resource managers
Production managers
Distribution managers
Marketing managers
Service managers
