Question 1

Because not for profit organizations do not make profits,they do not require accountants/

Accepted Answer

Not for profit organizations may not make profits, but they still have expenses, revenues, and financial reporting requirements. An accountant is necessary to manage their finances, prepare tax filings, and ensure compliance with accounting standards.

Question 2

A certified public accountant is a accountant who passes a series of examinations established by the American Institute of Certified Public Accountants (AICPA)and does accounting work for no one particular firm.

Accepted Answer

A certified public accountant (CPA) is an accountant who has passed a series of examinations established by the American Institute of Certified Public Accountants (AICPA) and is licensed to practice accounting in one or more states. CPAs can work for a variety of employers, including public accounting firms, private companies, and government agencies.

Question 3

Public accountants can be hired to help businesses with payroll,taxes and other projects but they do not need to be employees of the company.

Accepted Answer

Public accountants can be independent contractors or work for accounting firms that offer their services to businesses on a project basis, without needing to be employees of the company.

Question 4

A trial balance is a summary of all the financial data in the account ledgers to check whether the figures are correct and balanced.

Accepted Answer

A trial balance is used to ensure that the total debits equal the total credits in a company's accounting system, thus ensuring accuracy and balance in financial data.

Question 5

Managerial accounting generates information for use outside the organization.

Accepted Answer

Managerial accounting is focused on providing information for internal use by managers and decision makers within the organization. It is not intended for external use by parties outside of the organization.

Question 6

A journal is a specialized accounting book or computer program in which information from accounting records is recorded into specific categories.

Accepted Answer

The answer of A journal is a specialized accounting book...

Question 7

Annual reports are yearly statements of the financial condition,progress and expectations of an organization.

Accepted Answer

Annual reports are indeed yearly statements that provide information on an organization's financial condition, progress, and expectations for the future.

Question 8

Financial accounting is used to provide information and analysis to managers within the organization to assist them in decision making.

Accepted Answer

Financial accounting provides information to external parties such as investors, creditors, and regulators, while managerial accounting provides information to internal managers for decision making.

Question 9

The sole purpose of accounting is to allow managers to make better decisions.

Accepted Answer

Accounting serves multiple purposes, including providing financial information to various stakeholders (such as investors, creditors, and regulatory agencies), ensuring compliance with financial regulations, and helping in decision-making, not just for managers but also for other stakeholders.

Question 10

Accounting is the recording,classifying,summarizing and interpreting of financial events and transactions,in order to provide management and other stakeholders the information they need to make good decisions.

Accepted Answer

This is the definition of accounting, which is true.

Question 11

A ledger is a record book in accounting where the transactions are kept for each day,week or month.

Accepted Answer

A ledger is a record book in accounting where transactions are summarized and categorized from the journal entries, not necessarily kept daily, weekly, or monthly.

Question 12

Double-entry bookkeeping is the concept of writing (or typing)every transaction in two places.

Accepted Answer

Double-entry bookkeeping follows the principle that every transaction has two equal and opposite effects and must be recorded in two accounts - a debit and a credit.

Question 13

If a manager wants to know how much money has been spent on supplies for the year she would most likely go to the ledger.

Accepted Answer

The ledger is a book or computer program that records all financial transactions for a business. It is a useful tool for tracking expenses, including supplies, over a period of time. Therefore, if a manager wants to know how much money has been spent on supplies for the year, she would most likely go to the ledger.

Question 14

The first step in the accounting cycle is to analyze and categorize documents.

Accepted Answer

The first step in the accounting cycle is to analyze and categorize documents such as receipts, invoices, and bank statements to determine the financial transactions that have taken place during a specific period.

Question 15

One of the concerns of managerial accounting is to design strategies to minimize taxes.

Accepted Answer

One of the key roles of managerial accounting is to devise tax planning strategies that help organizations minimize their tax liability while also remaining compliant with tax laws and regulations. Therefore, the statement is true.

Question 16

Only managers use accounting information.

Accepted Answer

Accounting information is utilized by various stakeholders such as investors, lenders, regulators, government agencies, and even employees. It is not just limited to managers.

Question 17

GAAP stands for generally accepted accounting principles.

Accepted Answer

GAAP stands for generally accepted accounting principles, which are a set of guidelines, rules, and standards that companies use to prepare and present their financial statements. These principles ensure consistency, transparency, and accuracy in financial reporting.

Question 18

The job of reviewing and evaluating the records used to prepare a company's financial statements is referred to as financial evaluation.

Accepted Answer

The job of reviewing and evaluating the records used to prepare a company's financial statements is referred to as financial audit or financial review, not financial evaluation.

Question 19

A certified management accountant is a professional accountant who has met certain educational and experience requirements,passed a qualifying exam in the field and been certified by the Institute of Certified Management Accountants.

Accepted Answer

A certified management accountant is a professional accountant who has met certain educational and experience requirements, passed a qualifying exam in the field and been certified by the Institute of Certified Management Accountants.

Question 20

Public accountants work for a single firm,government agency or nonprofit organization.

Accepted Answer

Public accountants work for multiple clients, whether they are individuals, businesses, or organizations. They may work for an accounting firm, government agency or nonprofit organization, but their work involves serving a variety of clients.

Quiz 8: Managing Human Resources and Labor Relations