Study Guide
CHAPTER
1 Accounting—Present and Past
CHAPTER OUTLINE:
I. What Is Accounting?
A. Definition
B. Uses of Accounting Information
C. Classifications
1. Financial Accounting
2. Managerial Accounting / Cost Accounting
3. Auditing — Public Accounting
4. Internal Auditing
5. Governmental and Not-for-Profit Accounting
6. Income Tax Accounting
II. How Has Accounting Developed?
A. Early History
B. The Accounting Profession in the United States
C. Financial Accounting Standard Setting at the Present Time
1. Financial Accounting Standards Board
2. Standards are Evolving
D. Standards for Other Types of Accounting
1. Managerial Accounting / Cost Accounting
2. Auditing
3. Governmental and Not-for-Profit Accounting
4. Income Tax Accounting
E. International Accounting Standards
F. Ethics and the Accounting Profession
III. The Conceptual Framework
A. Context
B. Summary of Concepts Statement No. 8, Chapter 1 — The Objective of General Purpose Financial Reporting C. Objectives of Financial Reporting for Nonbusiness Organizations
IV. Plan of the Book A. Resources for Students TRUE/FALSE
1. Accounting is often referred to as the "language of business" because investors and creditors rely on accounting data to make decisions and informed judgments.
2. Accounting can be broadly defined as a process of identifying, measuring and communicating economic information about an organization for income tax purposes.
3. Accounting is necessary only for profit seeking entities.
4. Accounting rules are codified laws that have been set by the U.S. Congress and must be followed by all who practice in the accounting profession.
5. Because financial statements are based on historical costs, they result in exact measurements of what a business is worth.
6. Financial accounting has an external orientation, and is required to
1 Accounting—Present and Past
CHAPTER OUTLINE:
I. What Is Accounting?
A. Definition
B. Uses of Accounting Information
C. Classifications
1. Financial Accounting
2. Managerial Accounting / Cost Accounting
3. Auditing — Public Accounting
4. Internal Auditing
5. Governmental and Not-for-Profit Accounting
6. Income Tax Accounting
II. How Has Accounting Developed?
A. Early History
B. The Accounting Profession in the United States
C. Financial Accounting Standard Setting at the Present Time
1. Financial Accounting Standards Board
2. Standards are Evolving
D. Standards for Other Types of Accounting
1. Managerial Accounting / Cost Accounting
2. Auditing
3. Governmental and Not-for-Profit Accounting
4. Income Tax Accounting
E. International Accounting Standards
F. Ethics and the Accounting Profession
III. The Conceptual Framework
A. Context
B. Summary of Concepts Statement No. 8, Chapter 1 — The Objective of General Purpose Financial Reporting C. Objectives of Financial Reporting for Nonbusiness Organizations
IV. Plan of the Book A. Resources for Students TRUE/FALSE
1. Accounting is often referred to as the "language of business" because investors and creditors rely on accounting data to make decisions and informed judgments.
2. Accounting can be broadly defined as a process of identifying, measuring and communicating economic information about an organization for income tax purposes.
3. Accounting is necessary only for profit seeking entities.
4. Accounting rules are codified laws that have been set by the U.S. Congress and must be followed by all who practice in the accounting profession.
5. Because financial statements are based on historical costs, they result in exact measurements of what a business is worth.
6. Financial accounting has an external orientation, and is required to