Which Type of Accounting Addresses the Needs of External Stakeholders

question 7

Multiple Choice

Which type of accounting addresses the needs of external stakeholders, including shareholders, creditors, and government regulators?

• A) forensic accounting
• B) managerial accounting
• C) investigative accounting
• D) financial accounting

Identify and classify assets as current or long-term within a classified balance sheet.

Recognize and categorize different types of liabilities on a classified balance sheet.

Calculate and interpret the current ratio and its implications for a business’s short-term financial health.

Understand the accounting cycle and the steps involved from journalizing transactions to preparing post-closing trial balance.

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Definitions:

Sales Taxes

Taxes imposed on the sale of goods and services, typically calculated as a percentage of the purchase price, paid by the consumer at the point of sale.

Excise Taxes

Taxes paid when purchases are made on a specific good, such as gasoline or tobacco, often included in the price of the product.

Transfer Payments

Payments made by the government to individuals for which no goods or services are required in return, such as welfare benefits and pensions.

Government Spending

Expenditures by the government sector on goods and services, including salaries of public servants, public investments, and social benefits.