Unit 3 Section B

Question 1

Certified Public Accountant (CPA)

Answer 1

A professional accountant who has passed the CPA exam and met state licensing requirements. This accountant is a licensed accountant who provides services such as auditing, taxation, and financial consulting. They are authorized to represent clients before the IRS and other government bodies.

Question 2

Management Accountant

Answer 2

An accountant who provides financial information and analysis to assist management in decision-making. These accountants focus on internal financial management, including budgeting, performance evaluation, and cost management.

Question 3

Chartered Accountant (CA)

Answer 3

A professional accountant who has completed the required education and examinations, typically recognized internationally. This term is more commonly used in the UK, Canada, and other Commonwealth countries. They specialize in areas such as auditing, taxation, and financial planning.

Question 4

Auditor

Answer 4

A person who examines and verifies financial records to ensure accuracy and compliance with regulations. This person reviews financial statements to ensure they are accurate and comply with legal and regulatory standards. They may be internal or external to an organization.

Question 5

Forensic Accountant

Answer 5

An accountant who investigates financial discrepancies, fraud, and other criminal activities involving finances. They use their accounting expertise to examine financial records for fraud detection, litigation support, and legal matters.

Question 6

Government Accountant

Answer 6

An accountant who works for government entities, managing financial records and ensuring compliance with government regulations. These accountants prepare, analyze, and audit financial statements for government organizations, ensuring they follow legal and regulatory standards.

Question 7

Investment Accountant

Answer 7

An accountant who manages and reports financial data related to investments. These accountants track and report on investment portfolios, ensuring proper valuation and reporting of investments for individuals, organizations, or investment funds.

Question 8

Project Accountant

Answer 8

An accountant who manages the financial aspects of a specific project. These accountants track expenses, revenues, and budgets associated with a particular project, ensuring that financial resources are properly allocated and managed.

Question 9

Tax Examiner

Answer 9

A professional who reviews tax returns and financial records to ensure tax compliance. These professionals work for government agencies like the IRS and examine tax returns, determining if the information is accurate and taxes are paid correctly.

Question 10

Financial Advisor

Answer 10

A professional who provides advice on managing money and investments. These advisors help individuals and businesses plan and manage their finances, offering advice on investments, retirement planning, and budgeting.

Question 11

Cost Accountant

Answer 11

An accountant who specializes in tracking and analyzing costs associated with production and operations. They monitor and control the costs of manufacturing or delivering goods and services, helping businesses manage their cost structures.

Question 12

Bookeeper

Answer 12

A person who records the day-to-day financial transactions of a business. These people are responsible for maintaining accurate financial records, including transactions like purchases, sales, receipts, and payments.

Question 13

Uniform CPA Examination

Answer 13

A standardized test that individuals must pass to become a Certified Public Accountant (CPA). This test is a comprehensive test assessing accounting knowledge and skills, required for certification as a CPA in the United States.

Question 14

Auditing & Attestation (AUD)

Answer 14

A section of the CPA exam focusing on auditing procedures, internal controls, and financial reporting. This is one of the sections of the Uniform CPA Examination that assesses a candidate’s ability to audit financial statements and attest to their accuracy.

Question 15

Business Environment & Concepts (BEC)

Answer 15

A section of the CPA exam focusing on business concepts, operations, and ethical considerations. This section evaluates knowledge related to business structures, governance, economic concepts, and ethical responsibilities in the business environment.

Question 16

Financial Accounting & Reporting (FAR)

Answer 16

A section of the CPA exam that focuses on financial accounting principles, standards, and reporting requirements. These tests knowledge of accounting for financial transactions, preparation of financial statements, and understanding of reporting standards like GAAP.

Question 17

Regulation (REG)

Answer 17

A section of the CPA exam focusing on tax regulations, business law, and ethics. REG is one of the sections of the CPA Exam and tests a candidate’s knowledge of tax laws, ethical considerations, and regulatory practices in business.

Question 18

Generally Accepted Accounting Principles (GAAP)

Answer 18

A set of accounting principles, standards, and procedures used in the preparation of financial statements. This set is a framework of accounting standards and guidelines used to ensure consistency and transparency in financial reporting across organizations.

Question 19

Financial Accounting Standards Board (FASB)

Answer 19

A private organization that sets accounting standards in the United States. This organization establishes and updates the GAAP framework to guide accounting practices and financial reporting in the U.S.

Question 20

Investing

Answer 20

The act of allocating money into assets with the expectation of generating returns. This involves purchasing financial assets such as stocks, bonds, or real estate to build wealth over time.

Question 21

Insurance

Answer 21

A financial product that provides protection against financial loss. This is a contract in which an individual or entity pays premiums in exchange for financial protection against specific risks or losses.

Question 22

Tax Strategies

Answer 22

Approaches or plans designed to minimize tax liabilities. These approaches involve planning and decisions made to reduce tax burdens through deductions, credits, and legal methods of minimizing taxable income.

Question 23

Saving

Answer 23

The act of setting aside money for future use rather than spending it immediately. This act refers to the practice of accumulating money in a savings account or other financial instruments for future needs or emergencies.

Question 24

Budgeting

Answer 24

The process of creating a financial plan to manage income and expenses. This process involves estimating income, setting spending limits, and tracking financial activities to achieve specific financial goals.

Question 25

Ledger

Answer 25

A record of financial transactions, typically organized by accounts. This is a detailed record used to track debits and credits in accounting, often used to summarize transactions in general or subsidiary ledgers.

Question 26

Discrepancies

Answer 26

Inconsistencies or differences between two sets of data. These refer to mismatches or errors in records or financial data that need to be investigated and corrected.

Question 27

Financial Statements

Answer 27

Reports that summarize the financial performance and position of an entity. These reports include documents such as the balance sheet, income statement, and cash flow statement that provide an overview of a company's financial health.

Question 28

Payroll

Answer 28

The total amount of wages and salaries paid to employees by an employer. Payroll refers to the process of calculating and distributing employee compensation, including wages, salaries, bonuses, and deductions.

Question 29

Income statements

Answer 29

A financial statement that shows a company's revenues and expenses over a period. These report on a company's profitability by detailing revenues, costs, and expenses, ultimately leading to net income or loss.

Question 30

Tax Preperation

Answer 30

The process of organizing and filing tax returns. This process involves gathering financial documents, calculating taxes owed, and completing forms to file with tax authorities.