<div style='margin-bottom: 20px;'> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What are the four main areas of accounting?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The four main areas are bookkeeping, financial accounting, managerial accounting, and tax accounting.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What defines a liquid asset in accounting?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Assets that can be quickly and easily converted to cash within a short amount of time.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the fundamental principle of double-entry bookkeeping?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Each transaction must be recorded in two accounts, with the total amount credited equaling the total amount debited.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">Why is double-entry bookkeeping considered essential for financial accuracy?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It allows for checks and balances on all transactions, ensuring financial statements are orderly and helps in detecting and preventing fraud.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How do accountants contribute to a business beyond managing money?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Accountants play a critical role in decision-making and strategic planning, ensuring tax compliance, financial reporting, strategic financial planning, providing financial guidance, and maintaining accurate financial records.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does tax accounting differ from financial accounting in objectives and rules?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Tax accounting focuses on complying with tax laws and calculating tax liability, governed by the Internal Revenue Code, while financial accounting provides a comprehensive picture of a company’s financial health for external stakeholders, following GAAP or IFRS.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What characterizes an expense in accounting terms?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The cash spent or costs incurred by a company in an attempt to generate profit.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">Why does GAAP require the use of double-entry bookkeeping?</h2> <p style="font-weight: normal; font-size: 1.2rem;">To ensure that businesses record financial transactions accurately, maintaining the integrity of financial statements.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How do asset accounts behave in relation to debits and credits?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Asset accounts increase when debited and decrease when credited.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does financial accounting differ from managerial accounting?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Financial accounting is prepared for external stakeholders and is highly regulated, focusing on income statements, balance sheets, and cash flows. Managerial accounting is for internal use, more detailed, and not defined by accounting principles, focusing on strategic information.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How is revenue defined in the context of business activities?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The total amount of money received from conducting commercial activities, such as making sales.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the primary purpose of accounting in business and individual financial management?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Accounting is used to collect and organize financial data to serve organizations and individuals, helping them understand their finances and make decisions about the future.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the role of the general ledger in double-entry bookkeeping?</h2> <p style="font-weight: normal; font-size: 1.2rem;">It records both sides of each transaction, reflecting how credits and debits impact the accounts.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the significance of the accounting equation in maintaining financial records?</h2> <p style="font-weight: normal; font-size: 1.2rem;">The accounting equation ensures that the balance sheet is balanced, serving as the basis of the double-entry accounting system and helping to check the accuracy of transaction records.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">How does double-entry bookkeeping support the balance sheet equation?</h2> <p style="font-weight: normal; font-size: 1.2rem;">By ensuring that a company's assets always equal its liabilities plus equity through the recording of transactions as debits and credits.</p> </div> <div style="margin-bottom: 10px; background-color: #f2f2f2; border-radius: 1rem; padding: 10px 20px;"> <h2 style="font-weight: bold; margin-bottom: 3px; font-size: 1.5rem;">What is the definition of revenue in the context of business operations?</h2> <p style="font-weight: normal; font-size: 1.2rem;">Revenue is the total amount of money received from carrying out business operations, such as sales, and is also known as sales on the income statement.</p> </div> </div>