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Ch1 QC #1 [p7] What is accounting?
An information and measurement system that identifies, records, and communicates relevant information to help people make better decisions.
Ch1 QC #2 [p 7] What is the realtion between accounting and recordkeping?
Recordkeeing, 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 and much more.
Accounting includes identifying, measuring, recording, reporting, and analyzing business events and transactions.
Ch1 QC #3 [p 7] Identify some advantages of technology for accounting.
- Increased accuracy
Ch1 What are the two groups of information users?
External and internal.
Ch1 Describe external information users.
Users of accounting information who are not directly involved in running the organization.
Ch 1 Describe internal information users.
Users of accounting information who are directly involved in managing and operating an organization.
Ch1 QC #4 Who are the external users of accounting information?
- Consumer Groups
- External Auditors
Ch1 QC #4 Who are the internal users of accounting information?
- Internal Auditors
- Sales Staff
- Budget Officers
Ch1 QC #5 Identify at least five types of managers who are internal users of accounting information.
- Research and development
- Human resources
Ch1 What is managerial accounting?
The area of accounting that serves the decision-making needs of internal users.
Ch1 QC #6 What are internal controls and why are they important?
Internal controls are procedures set up to protect assets, ensure reliable accounting reports, promote efficiency, and encourage adherence to company policies. Internal controls are crucial for relevant and reliable information.
Ch1 Define ethics.
Beliefs that distinguish right from wrong. They are accepted standards of good and bad behavior.
Ch1 QC #7 What three-step guidelines can help people make ethical decisions?
- (1) Identify ethical concerns using personal ethics
- (2) Analyze options considering all good and bad consequences
- (3) Make ethical decisions after weighing all consequences