Describe the role of an accountant in the context of accounting information.

Accountants compile vital financial reports.

• They observe financial events.

• They process financial transactions.

• They provide reports for decision-making.

What distinguishes financial accounting from management accounting?

Financial accounting differs from management accounting.

• Focuses on external reporting.

• Systematic record-keeping required.

• Supports internal decision-making.

Fill in the blank: Economic events can be categorized into ___ and ___ events.

External; internal

What is the primary purpose of cost accounting?

Cost accounting focuses on analyzing expenditures to determine the cost of products or services and controlling costs for decision-making.

What are qualitative characteristics of accounting information that enhance its usefulness?

Qualitative characteristics include reliability, relevance, understandability, and comparability.

Riddle: I am the financial statement that shows a business's assets on one side and liabilities and capital on the other. What am I?

Balance sheet

Identify the two main types of users of accounting information.

Internal users and external users.