unit 3 section a

Question 1

accounting

Answer 1

The process of recording, classifying, and summarizing financial transactions. the practice of systematically tracking and managing financial records to ensure accuracy and compliance with legal and regulatory standards.

Question 2

managerial accounting

Answer 2

A branch of accounting focused on providing information to managers for decision-making within an organization. it involves generating reports and data analysis for internal use to assist in planning, budgeting, and performance evaluation.

Question 3

financial accounting

Answer 3

The field of accounting that focuses on preparing financial statements for external stakeholders. it involves the preparation of financial reports, including balance sheets and income statements, for investors, creditors, and regulatory bodies.

Question 4

cost accounting

Answer 4

The process of tracking, recording, and analyzing costs associated with producing goods or services. it helps businesses determine the cost of production by analyzing direct and indirect costs, assisting in pricing and profitability analysis.

Question 5

forensic accounting

Answer 5

A field of accounting that involves investigating financial discrepancies and fraud. it focuses on detecting financial fraud, misconduct, and discrepancies for legal or investigative purposes.

Question 6

tax accounting

Answer 6

A branch of accounting focused on the preparation of tax returns and ensuring compliance with tax laws. it involves the planning, preparation, and filing of tax documents to meet government tax obligations, ensuring accurate tax reporting and minimizing tax liability.

Question 7

governmental accounting

Answer 7

Accounting practices applied to govermental organizations, focusing
on public sector financial management. it deals with recording and managing the finances of government entities, ensuring transparency and accountability in the use of public funds.

Question 8

fiduciary accounting

Answer 8

A branch of accounting involving managing the financial affairs of clients under a fiduciary duty. it involves managing trust funds, estates, and other financial matters where the accountant has a responsibility to act in the best interest of the client.

Question 9

project accounting

Answer 9

A branch of accounting that tracks the financial progress of specific projects. it involves the management of financials related to a specific project, including costs, revenue, and resource allocation, ensuring that the project stays within budget.

Question 10

international accounting

Answer 10

The practice of accounting across different countries, accounting for
international standards and regulations. it focuses on the harmonization of financial reporting and the application of accounting standards across global businesses and financial

Question 11

fund accounting

Answer 11

A system of accounting used by nomprofit organizations, government entities,
and others to track and manage fund allocations. it tracks the use of restricted funds, ensuring that they are spent in accordance with donor restrictions or governmental requirements.

Question 12

accrual accounting

Answer 12

An accounting method where revenues and expenses are recognized when they are earned or incurred, not when cash is exchanged. it is used to record financial transactions in real-time as they occur, providing a more accurate representation of an organization’s financial health.

Question 13

environmental accounting

Answer 13

The process of accounting for environmental costs and their impact on financial performance. it involves the identification and reporting of costs related to environmental conservation, sustainability efforts. and compliance with environmental regulations.

Question 14

auditing

Answer 14

The examination and evaluation of financial statements, records, and transactions to ensure accuracy and compliance. it involves the independent review of an organization’s financial formation to ensure it is accurate, reliable, and in accordance with accepted standards.

Question 15

bookkeeping

Answer 15

the process of recording daily financial transactions. it involves maintaining accurate and systematic records of a company’s financial transactions, such as sales, expenses, and receipts.

Question 16

financial statements

Answer 16

reports that provide an overview of a company’s financial performance and position. it include documents such as the balance sheet, income statement, and cash flow statement, summarizing an organization’s financial activities.

Question 17

managerial

Answer 17

pertaining to management or the activities of managing. it refers to tasks or decisions made by managers, often involving planning, organizing, and controlling business operations.

Question 18

forensic

Answer 18

relating to or used in legal proceedings or criminal investigations. it refers to the application of accounting or financial analysis techniques in legal contexts, such as fraud investigations or court cases.

Question 19

governmental

Answer 19

relating to government or its operations. it pertains to anything controlled, regulated, or provided by government entities or bodies.

Question 20

fiduciary

Answer 20

involving a trust relationship where one party has a duty to act in the best interest of another. it refers to the responsibility of one party to act in the best interest of another, particularly in managing finances or assets

Question 21

project

Answer 21

a planned undertaking with specific goals, resources, and a defined timeframe. it is an endeavor with a set objective that requires resources, effort, and management to achieve specific goals.

Question 22

international

Answer 22

relating to more than one country or across multiple countries. it pertains to interactions or operations that span across multiple countries, such as international trade or business operations.

Question 23

accrual

Answer 23

the recognition of financial transactions when they occur, rather when payment is made or received. it refers to the accounting practice of recording revenues and expenses when they are earned or incurred, rather than when cash changes hands.

Question 24

environmental

Answer 24

pertaining to the natural world or surroundings. it refers to anything related to the environment, such as natural resources, ecosystems, or sustainability.

Question 25

principles

Answer 25

fundamentals truths, rules, or beliefs that guide behavior or decisions. they are basic rules or standards of conduct that guide actions and decisions, especially in business or ethics.

Question 26

standards

Answer 26

established norms or require,ents in a particular field. it refers to universally accepted guidelines or criteria that ensure quality, consistency, and compliance in a particular area, such as accounting or safety.

Question 27

reports

Answer 27

documents or summaries that present information on a particular subject. they are formal documents that provide detailed information about a topic, such as financial performance or audit findings.

Question 28

costs

Answer 28

the monetary value of resources spent to produce something. it refers to the expenses incurred in producing goods or services, including raw materials, labor, and overhead.

Question 29

budgets

Answer 29

financial plans that estimate income and expenses over a certain period. they are detailed plans used to allocate financial resources for various purposes, such as business operations or personal finances.

Question 30

assets

Answer 30

resources or items of value owned by an individual or organization. they are valuable resources, such as cash, property, equipment, or intellectual property, that are owned by an entity.

Question 31

profitability

Answer 31

the ability of a business to generate a profit. it refers to the capacity of a company to generate financial gain from its operations.

Question 32

financial

Answer 32

Related to finance or the management of money and assets. it refers to anything pertaining to money management, accounting, budgeting, and investing.

Question 33

fund

Answer 33

a sum of money set aside for a specific purpose. it is a pool of money that is designated for a particular purpose, such as a retirement fund, emergency fund, or investment fund.

Question 34

tax

Answer 34

a mandatory financial charge imposed by a government. it refers to a compulsory payment to the government, typically based on income, property, or sales, that is used to fund public services and infrastructure.

Question 35

tax obligations

Answer 35

the legal responsibility to pay taxes to a giver,ent. they are the duties or requirements individuals or business have to pay taxes as stipulated by law.

Question 36

tax returns

Answer 36

forms filled with a tax authority reporting income, expenses, and tax payments. they are documents submitted to the government to report an individual’s or business’s tax information and calculate tax owed.

Question 37

public trust

Answer 37

confidence the public has in the integrity of an institution or individual. it refers to the confidence placed in an organization or person to act in the public’s best interest and maintain ethical standards.

Question 38

compliance

Answer 38

adhering to rules, regulations, or standards. it refers to following the laws, regulations, and politics that apply to a business or individual, especially regarding legal or ethical standards.

Question 39

regulations

Answer 39

rules or directives made and maintained by an authority. they are rules or laws established by authorities to govern behavior within specific sectors or industries.

Question 40

transparency

Answer 40

openness and clarity in operations, allowing stakeholders to see what is happening. it refers to the practice of being open and clear about decisions, processes, and financial matters to build trust and accountability.

Question 41

investors

Answer 41

individuals or organizations that allocate money into business, projects, or assets in hope of financial return. they are people or entities who put money into ventures or assets with expectation of generating a profit.

Question 42

creditors

Answer 42

individuals or institutions to whom money is owed. they are entities that lend money or provide credit to businesses or individuals, and expect repayment.

Question 43

legal

Answer 43

pertaining to the law. it refers to anything related to the law or lawful procedures, such as legal obligations or rights.

Question 44

discrepancies

Answer 44

differences or inconsistencies between two or more items, records, or facts. it refers to inconsistencies or mismatches between documents, statements, or reports that require investigation or correction.

Question 45

investigation

Answer 45

a systematic inquiry to uncover facts or details, often related to fraud or crime. it is the process of examining information or facts to uncover truth, typically conducted to resolve discrepancies or issues.

Question 46

fraud

Answer 46

deceptive practices intended to gain an unfair advantage, often financially. it refers to intentional deception or misrepresentationb used to secure unfair or illegal financial gains