Branches of accounting

Question 1

Involves recording and categorizing transactions for a business, must be prepared according to the Generally Accepted Accounting Principles (GAAP)

Answer 1

Financial Accounting

Question 2

Is most commonly used in the manufacturing industry, an industry that has a lot of resources and costs to manage.

Answer 2

Cost Accounting

Question 3

An independent third party reviews a company’s financial statements to make sure they are presented correctly. Helps a business to zero in fraud, mismanagement, and waste or identify & control any potential weaknesses in it’s policies or procedures.

Answer 3

Auditing

Question 4

This type of accounting provides data about a company’s operations to managers. The focus is to provide data that managers need to make decisions about a business’s operations, not comply strictly with GAAP.

Answer 4

Managerial Accounting

Question 5

Is the process of recording financial transactions pertaining to a business. It includes analyzing, recording, and summarizing financial transactions or events over an accounting period.

Answer 5

Accounting

Question 6

Is the system that collects, stores, processes, and reports accounting information.

Answer 6

Accounting Information Systems (AIS)

Question 7

Is a branch of accounting that uses accounting skills to investigate financial crimes

Answer 7

Forensic Accounting

Question 8

Is a branch of accounting that deals with the management of assets that are held in trust for others.

Answer 8

Fiduciary Accounting

Question 9

GAAP stands for

Answer 9

Generally Accepted Accounting Principles