This part of the assessment allows you to demonstrate and reinforce your knowledge of business accounting terminology by transferring what is in your head onto paper.
For this assessment, use the Assessment 4, Part 2 Template to record your answers to the following short-answer questions designed to test your recall of accounting fundamentals.
Define the internal and external users of accounting data. What data would each group most likely want to review? Provide examples of each user type.
Describe the role ethics plays in the operation of an accounting system. Include a couple of examples.
Select three among the several accounting conventions prescribed by law, regulators, and accounting organizations. For each selection, describe its purpose and provide an example of how it would be applied to an accounting system.
Describe each of the three main financial statements—the end products of the work that takes place in an accounting system over a period of time—studied in the course. What does each statement present? Why is it important to prepare these? Who uses the information in the statements? Describe the interrelationship among the three statements.
Discuss the rules of debit and credit as apply to each of the account types that would appear on a company’s balance sheet and income statement. Identify the normal balance for each account type and provide an example event for each. Analyzing business events requires the accountant to make several judgments about the facts contained in the event.