ACCT 201 Principles of Financial Accounting Practice Exam - Chapter 1 Accounting Information For Business Decisions Dr. Fred Barbee Solution to Short-Problem #2

Short Problem #2

2	Match the following terms a through j with the appropriate definition Investing Activities Ethics Recordkeeping Audit Internal Users Accounting Financing Activities Social Responsibility Operating Activities External Users

f	1.	An information and measurement system that identifies, records and communicates relevant information to people to help them make better decisions.
c	2.	The part of accounting that involves recording transactions and events, either electronically or manually.
j	3.	Persons using accounting information who are not directly involved in the running of the organization.
e	4.	Persons using accounting information who are directly involved in managing the organization.
i	5.	The use of resources to carry out an organization's plans in the areas of research, dvelopment, purchasing, production, distribution, and marketing.
a	6.	The buying and selling of resources that an organization uses to acquire its products and/or services.
g	7.	The means organizations use to pay for resources such as land, buildings, and machines.
b	8.	Conduct by which actions are judged as right or wrong, fair or unfair, honest, or dishonest.
h	9.	Involves considering the impact of and being accountable for the effects that actions might have on society.
d	10.	An analysis and report of an organization's accounting system and records using various tests.