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Eng. Assignment

The document discusses various accounting concepts such as the definition of accounting, who practices it, its main areas including financial, managerial, auditing and tax accounting. It also defines accounting terms like journal, liquidity and explains the roles of public and private accountants in providing accounting services both internally and externally to organizations. The purpose of accounting is to interpret and measure economic activities and provide financial information to managers and other stakeholders.

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ramadhannnn2710
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19 views

Eng. Assignment

The document discusses various accounting concepts such as the definition of accounting, who practices it, its main areas including financial, managerial, auditing and tax accounting. It also defines accounting terms like journal, liquidity and explains the roles of public and private accountants in providing accounting services both internally and externally to organizations. The purpose of accounting is to interpret and measure economic activities and provide financial information to managers and other stakeholders.

Uploaded by

ramadhannnn2710
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Reevo Dorian N.

233402516212

1. What is accounting?
Accounting is the art of interpreting, measuring, and describing economic activities.

2. Who practices accounting in certain form in an almost daily activity?


Nearly everyone practices accounting in a certain form on an almost daily activity.

3. When are you working with accounting concepts?


You are working with accounting concepts when preparing a household budget, filing income
tax returns, or running a business.

4. Why is accounting called the language of business?


Accounting is called the language of business because people in the business world, owners,
managers, bankers, and investors, use accounting terms and concepts to describe the resources
and activities of every business, large and small

5. What does accounting provide?


Accounting provides a framework for looking at past performance, current financial health,
and possible future performance. It also provides a framework for comparing the financial
performances of different firms.

6. Why is financial information needed by managerial decision-makers?


Financial information is needed by managerial decision-makers to help them plan and control
the activities of the organization. Managerial accounting provides financial information that
can be used to evaluate and make decisions about current and future operations.

7. Name the four areas of accounting?


The four main areas of accounting are financial accounting, auditing, managerial accounting,
and tax accounting.

8. What is financial accounting?


Financial accounting is the branch of accounting that prepares financial reports used by
managers and outsiders.

9. What is auditing?
Auditing is the process of reviewing the records used to prepare financial statements to ensure
accuracy and compliance with accounting standards.

10. What is tax accounting?


Tax accounting involves developing tax strategies and preparing tax returns to ensure
compliance with tax laws and regulations.

11. What is a public accountant?


Public accountants are independent accountants who serve organizations and individuals on a
fee basis.

12. What is a private accountant?


Private accountants are accountants employed within organizations. They may also do
financial accounting, auditing, managerial accounting or tax accounting.

13. What do public accountants and private accountants do?


Public accountants provide services to external clients on a fee basis, while private
accountants work within organizations to handle internal accounting needs.

14. What is a journal?


A journal is a listing of financial transactions in chronological order. It records the details of
each transaction before classifying and summarizing them in the ledger.
15. What is liquidity?
Liquidity refers to the speed with which assets can be converted into cash. Assets are listed on
the balance sheet in order of liquidity, with the most liquid assets appearing first.

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