Review Questions
For Accounting’s Role in Business
I. Question
1. What is accounting?
2. What is the definition of a business transaction?
3. What is the principal purpose of accounting?
4. Describe the two major financial statements.
5. What are the uses of accounting information presented in the
financial statements?
6. Who are the external users of the financial statements?
7. Who are the internal users of the financial statements?
8. What is the difference between accounting and bookkeeping?
9. Describe the branches of accounting.
10. What is the audit function as performed by a certified accountant?
II. Multiple Choice with answer.
1. Which of the following is an example of an internal user of a
hospitality business financial information?
a. The firm’s board of directors
b. Department managers
c. The general managers
d. All of the above
2. Which of the following statements about bookkeeping is true?
a. Bookkeeping is the last step in processing financial data
b. Bookkeeping and accounting are two different names to
essentially the same process.
c. Bookkeeping is a clinical procedure that records and
classifies business transactions.
