What is the accounting equation ?

C. Financial accounting

Explanation:

Financial Accounting simply involves the elaboration of financial statements, and the further analysis of those statements.

Financial statements are mainly three:

As stated in the question, SRW develops financial statements that are later analyzed by ABC's stockholders, financial analysts and bankers, in other words, SRW does the financial accounting for ABC.

C. Financial accounting

Explanation:

Financial Accounting simply involves the elaboration of financial statements, and the further analysis of those statements.

Financial statements are mainly three:

As stated in the question, SRW develops financial statements that are later analyzed by ABC's stockholders, financial analysts and bankers, in other words, SRW does the financial accounting for ABC.

1. Audit: An assessment of whether financial statement follow GAAP.

2. Net income: Amount a business earns in excess of all expenses and costs associated with its sales and revenues.

3. FASB: A group that sets accounting principle in the United States.

4. Public accounting: Accounting professionals who provide services for many clients

5. Ethics: Principles that determine whether an action is right or wrong

Explanation:

1. Audit

An audit is the assessment and evaluation of the financial statements in regard to the set standards by the GAAP. The GAAP referred to as Generally Accepted accounting Principles are a set of accounting guidelines that should be used in financial reporting. The aim of the audit is therefor to assess whether the financial report of the company being audited is withing the threshold of GAAP.

2. Net income

The net income can be defined as the amount business earns in excess of all expenses and costs associated with its sales and revenues. The net income can be calculated as shown;

Net income=Total revenue-total expenses, where the total revenue is the amount of income that the business earns in terms of sales, while the expenses are the total costs of running the business

3. FASB

Generally referred to as the Financial Accounting Standards Board, is a body constituted by a Board of accounting professional whose main role is to set accounting principle in the United States. They also regulate the practice of accounting the United States.

4. Public accounting

Public accounting refers to the groups of accountants that provide services to the public by using their accounting firms. They are generally accounting professionals who provide services for many clients.

5. Ethics

Ethics are rules and principles that measure the morality of an action. It can also be defined as principles that determine whether an action is right or wrong. Ethics are used in a professional set up to judge the activities or action of a professional. Ethical committees are always set up for this purpose. If an action is determined to be ethical then it is right, however if an action is unethical then it is wrong and should be punished.

1. Audit: An assessment of whether financial statement follow GAAP.

2. Net income: Amount a business earns in excess of all expenses and costs associated with its sales and revenues.

3. FASB: A group that sets accounting principle in the United States.

4. Public accounting: Accounting professionals who provide services for many clients

5. Ethics: Principles that determine whether an action is right or wrong

Explanation:

1. Audit

An audit is the assessment and evaluation of the financial statements in regard to the set standards by the GAAP. The GAAP referred to as Generally Accepted accounting Principles are a set of accounting guidelines that should be used in financial reporting. The aim of the audit is therefor to assess whether the financial report of the company being audited is withing the threshold of GAAP.

2. Net income

The net income can be defined as the amount business earns in excess of all expenses and costs associated with its sales and revenues. The net income can be calculated as shown;

Net income=Total revenue-total expenses, where the total revenue is the amount of income that the business earns in terms of sales, while the expenses are the total costs of running the business

3. FASB

Generally referred to as the Financial Accounting Standards Board, is a body constituted by a Board of accounting professional whose main role is to set accounting principle in the United States. They also regulate the practice of accounting the United States.

4. Public accounting

Public accounting refers to the groups of accountants that provide services to the public by using their accounting firms. They are generally accounting professionals who provide services for many clients.

5. Ethics

Ethics are rules and principles that measure the morality of an action. It can also be defined as principles that determine whether an action is right or wrong. Ethics are used in a professional set up to judge the activities or action of a professional. Ethical committees are always set up for this purpose. If an action is determined to be ethical then it is right, however if an action is unethical then it is wrong and should be punished.

Financial accounting encompasses established policies, rules and standards of recording and reporting of financial activities to achieve established plans and verification of results by auditors to obtain true monetary position of the organization for gaining stakeholder's and external users interests.

Managerial accounting can be defined as an internal process which revolves around monetary and non-monetary affairs without outside influence of auditing standards or accounting constraints.

a. Reports are usually prepared quarterly and annually

Account Relation: Financial accounting

b. Information is verified by external auditors.

Account Relation: Financial accounting

c. Focus is on the past.

Account Relation: Financial accounting

d. Main characteristic of information is that it must be relevant.

Account Relation: Managerial accounting

e. Reports tend to be prepared for the parts of the organization rather than the whole organization.

Account Relation: Managerial accounting

f. Primary users are internal (i.e, company managers).

Account Relation: Financial accounting

i. Reports are prepared as needed.

Account Relation: Financial accounting

j. The primary characteristics of information are that it must be reliable and objective

Account Relation: Financial accounting

k. Primary users are external (i.e., creditors, investors)

Account Relation: Financial accounting

l. Focus is on the future.

Account Relation: Managerial accounting

m. Reporting is based mainly on the company as a whole.

Account Relation: Financial accounting

Financial accounting encompasses established policies, rules and standards of recording and reporting of financial activities to achieve established plans and verification of results by auditors to obtain true monetary position of the organization for gaining stakeholder's and external users interests.

Managerial accounting can be defined as an internal process which revolves around monetary and non-monetary affairs without outside influence of auditing standards or accounting constraints.

a. Reports are usually prepared quarterly and annually

Account Relation: Financial accounting

b. Information is verified by external auditors.

Account Relation: Financial accounting

c. Focus is on the past.

Account Relation: Financial accounting

d. Main characteristic of information is that it must be relevant.

Account Relation: Managerial accounting

e. Reports tend to be prepared for the parts of the organization rather than the whole organization.

Account Relation: Managerial accounting

f. Primary users are internal (i.e, company managers).

Account Relation: Financial accounting

i. Reports are prepared as needed.

Account Relation: Financial accounting

j. The primary characteristics of information are that it must be reliable and objective

Account Relation: Financial accounting

k. Primary users are external (i.e., creditors, investors)

Account Relation: Financial accounting

l. Focus is on the future.

Account Relation: Managerial accounting

m. Reporting is based mainly on the company as a whole.

Account Relation: Financial accounting

Samantha should choose Financial Accounting

Explanation:

Financial Accounting is the area of accounting that has experienced the most growth in recent years. This is because of the large size and complexity of financial markets, and the increasing importance that they have in the overall economy.

Financial Accounting specializes in the recording and analysis of financial transactions. Financial transactions are those that a firm uses to obtain funds in order to invest in new projects, pay off other obligations, or simply capitalize the firm.

A. 2.2 cents

Explanation:

The computation of cost per copy for accounting department is shown below:-

Total copies = Purchase + Accounting + Information technology

= $150,000 + $450,000 + $200,000

= $800,000

Cost for accounting department = Accounting ÷ Total copies × New copier

= $450,000 ÷ $800,000 × $17,600

= $9,900

Now, Cost per copy = Cost for accounting department ÷ Accounting

= $9,900 ÷ $450,000

= 2.2 cents

Samantha should choose Financial Accounting

Explanation:

Financial Accounting is the area of accounting that has experienced the most growth in recent years. This is because of the large size and complexity of financial markets, and the increasing importance that they have in the overall economy.

Financial Accounting specializes in the recording and analysis of financial transactions. Financial transactions are those that a firm uses to obtain funds in order to invest in new projects, pay off other obligations, or simply capitalize the firm.

A. 2.2 cents

Explanation:

The computation of cost per copy for accounting department is shown below:-

Total copies = Purchase + Accounting + Information technology

= $150,000 + $450,000 + $200,000

= $800,000

Cost for accounting department = Accounting ÷ Total copies × New copier

= $450,000 ÷ $800,000 × $17,600

= $9,900

Now, Cost per copy = Cost for accounting department ÷ Accounting

= $9,900 ÷ $450,000

= 2.2 cents