What do we mean when we say that accounting is a means rather than an end?
Accounting is sometimes described as the language of business. What is meant by this description?
What kinds of organizations, in addition to businesses, use accounting information?
What is the primary distinction between financial accounting and other accounting?
Describe the relationship among the accounting process, accounting information, decision makers, and economic activities.
What is an accounting system, and what is the primary objective of such a system?
What do we mean when we say that an accounting system needs to be cost-effective?
What are the three basic functions of every accounting system?
Who designs and installs accounting systems?
Generally describe and give several examples of external users of accounting information.
What are the two primary external groups to which financial accounting information is directed?
What do we mean when we say that investors and creditors are interested in a company’s cash flow prospects?
When you invest your savings in a company, what is the difference between the return on your investment and the return of your investment?
Going from general to specific, what are the three primary objectives of financial accounting information?
What are the three primary financial statements with which we communicate financial accounting information?
Do the terms financial reporting and financial statements mean the same thing? Explain.
Is externally reported financial information always precise and accurate?
What do we mean when we say that financial accounting information is “general-purpose”?
How does management’s explanation enhance the usefulness of financial accounting information?
What are several examples of internal, managementprepared information that ordinarily would not be communicated externally?
What are some examples of internal users of accounting information?
What are the three primary ways enterprises use their internal accounting information?
Why does internal accounting information need to be timely?
Is internal accounting information primarily historical or future-oriented? How does that compare with financial accounting information?
How does accounting information assist management in measuring efficiency and effectiveness?
Why is it important for accounting information to have the quality of integrity?
What is meant by generally accepted accounting principles, and how do these principles add to the integrity of financial accounting information?
What is the definition of internal control, and what are the five components of COSO’s internal control framework?
What is an audit, and how does it add to the integrity of accounting information?
What is meant by the professional designations CPA, CMA, and CIA, and how do these designations add to the integrity of accounting information?
Why was the Sarbanes-Oxley legislation passed in 2002, and what are its implications for the accounting profession?
What is a code of ethics, and how do such codes add to the integrity of accounting information?
What is the Financial Accounting Standards Board (FASB), and what is its role in external financial reporting?
What is the Securities and Exchange Commission (SEC), and what is its role in external financial reporting?
What is the role of the Public Company Accounting Oversight Board in the audit of financial statements?
What is the primary mission of the Institute of Management Accountants?
What is the mission of the American Institute of Certified Public Accountants, and does the organization have primarily a U.S. or an international focus?
Who makes up the majority of the members of the American Accounting Association, and how has this organization affected the practice of accounting?
What is the International Accounting Standards Board (IASB), and what are its objectives?
