Answered: The primary purpose of what type of…

The primary purpose of what type of business is to serve a particular need in the community? A. for-profit B. not-for-profit C. manufacturing D. retail Chapter 1 Role of Accounting in Society 5 3

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 71C

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Exercise 1-31 Decisions Based on Accounting Information Decision-makers use accounting information in a wide variety Of decisions including the following: 1. Deciding whether or not to lend money to a business 2. Deciding whether or not an individual has paid enough in taxes 3. Deciding whether or not to place merchandise on sale in order to reduce inventory 4. Deciding whether Or not to invest in a business 5. Deciding whether or not to demand additional benefits for employees Required: Match each decision with one of the following decision-makers who is primarily responsible for the decision: a government (G), an investor (I), a labor union (U), business managers (M), or a bank (B).
1. When did the business call accountable?1. Business Activities are accountable when they are called business Transactions and events when they affect the assets, liabilities and owner's equity2. Accounting elements of Accounting values are classified into two categories namely external Transactions and internal Transactions.3.External Transactions involves exchanges of economic resources by a business enterprise with another business enterprise ex.selling of services, and commodities to customers,payment of accounts to suppliers, payment of store or office rents etc.4. Internal Transactions are Transactions or events that happened or take place within the business enterprise only . Ex. conversion of raw materials into finished product, unanticipated loss from fire and food, or any calamities affecting enterprise. A. 1-2 onlyB. 1-2-3C. 1-2-3-4D. 3-4
1. When did the business call accountable? 1. Business Activities are accountable when they are called business Transactions and events when they affect the assets, liabilities and owner's equity 2. Accounting elements of Accounting values are classified into two categories namely external Transactions and internal Transactions. 3.External Transactions involves exchanges of economic resources by a business enterprise with another business enterprise ex.selling of services, and commodities to customers,payment of accounts to suppliers, payment of store or office rents etc. 4. Internal Transactions are Transactions or events that happened or take place within the business enterprise only . Ex. conversion of raw materials into finished product, unanticipated loss from fire and food, or any calamities affecting enterprise. A. 1-2 only B. 1-2-3 C. 1-2-3-4 D. 3-4 2. What can you say about exchanges of equal monetary values? 1. For every value received, another value is given away as an…
MULTIPLE CHOICE: 1. These users need accounting information in evaluating the stability of the business in so far as their job security, future remuneration, and career growth and opportunities are concerned. A. Employees B. Creditors C. Auditors D. Regulatory authorities 2. All of the following describe accounting describe accounting, except A. A service activity B. An information system C. A universal language of business D. An exact science rather than an art.
1.4 Which of the following is not considered a stakeholder of an organization? A. creditors B. lenders C. employees D. community residents E. a business in another industry
1. Explain each accounting principles Accrual principle Conservatism principle Consistency principle Cost principle Economic entity principle Full disclosure principle Going concern principle Matching principle Materiality principle Monetary unit principle Reliability principle Revenue recognition principle Time period principle 2. Differentiate the types of business according to its activity: Service business Merchandising business Manufacturing business
Activity: Explain and differentiate the different branches of accounting. Financial accounting - Managerial accounting - Cost Accounting - Auditing - Tax Accounting - Fiduciary accounting - Project Accounting - Forensic Accounting - Fund Accounting - Government Accounting - Political Campaign Accounting - International Accounting - 2. Describe the nature of accounting 3. Explain the accounting process: recording classifying summarizing interpreting 4. Differentiate the four forms of business organizations: Sole proprietorship General Partnership Limited liability Company Corporations 5. Explain and describe the type of information needed by each of these users: Revenue expenses profitability debt 6. Explain each accounting principles Accrual principle Conservatism principle Consistency principle Cost principle Economic entity principle Full disclosure principle Going concern principle Matching principle Materiality principle Monetary unit principle Reliability principle…
2. State whether the following questions is True (T) or False (F): a) Management accounting provides economic and financial information for external users such as shareholders, creditors and banks. b) Financial accounting provides information for managers and other internal users. c) Financial accounting reports past results. d) Management accounting is future oriented.
1. What are the three functions of an accounting system? 2. What are the essential elements in decision making, and how does accounting fit into the process? 3. What types of personal decisions have required you to use accounting information? 4. What does the term "business" mean to you? 5. Why is accounting often referred to as the "language of business"? 6. In what ways are the needs of internal and external users of accounting information the same? In what ways are they different? 7. What does IFRS stand for? Who sets up the IFRS and are there many countries adopting IFRS? What is the advantage to adopt IFRS? 8. What are generally accepted accounting principles (GAAP)? What is the purpose of GAAP? Who currently develops and issues the U.S. GAAP? 9. Why is it important for financial statements and other external reports to be based on generally accepted accounting principles? 10. What are the respective roles of the Securities and Exchange Commission (SEC) and the Internal…
B. Respond to the following statements and questions in thediscussion forum. Try to do this without looking back at the text.True (T) or False (F): T F1. Management accounting provides economicand financial information for external userssuch as shareholders, creditors and banks. 2. Financial accounting provides information formanagers and other internal users. 3. Financial accounting reports past results.  4. Management accounting is future oriented.  5. Management accounting is required to followgenerally accepted accounting principles. 6. Financial accounting examines monetary andnon-monetary events. 7. Cost accounting is used as a means of fixinga selling price. 8. Cost accounting looks at the company as awhole and not at the various units, jobs orprocesses. 9. Financial accounting is concerned with howand why profits arise. 10. Cost accounting depends entirely on historicalinformation 
12-Which of the following statement is True in regards to Accounting? a. Accounting is the language of business b. Accounting deals personal data c. Accounting will be used only in Government organization d. Accounting does not give opportunity to start any business
MCQS: External reporting is the result of? (a) Financial accounting (b) Management accounting (c) Cost accounting (d) Social accounting Which of the following business entity is collectively known as firm? (a) Sole trader-ship (b) Partnership (c) Co-operative society (d) Company