ACC 101 Assignment Questions and Answers

Acc 101 Assignment Questions Solved by Studentsdash

1. List the various branches and outline how financial accounting differs from management 

2. How does accounting save us from bookkeeping 

3. identify the uses of accounting information and state how it is useful to them 

1. Branches of Accounting and Differences Between Financial and Management Accounting

Branches of Accounting:

1. Financial Accounting – Records and reports financial transactions for external use.

2. Management Accounting – Provides financial data to help managers make decisions.

3. Cost Accounting – Analyzes costs to control expenses and improve efficiency.

4. Tax Accounting – Focuses on tax planning and compliance with tax laws.

5. Auditing – Examines financial records to ensure accuracy and compliance.

6. Forensic Accounting – Investigates financial fraud and legal disputes.

7. Government Accounting – Manages financial activities in government agencies.

8. Accounting Information Systems – Uses technology to process accounting data.

Differences Between Financial and Management Accounting:

Financial accounting focuses on preparing financial statements for external users like investors, regulators, and creditors. It follows strict guidelines such as IFRS or GAAP and reports past financial performance.

Management accounting, on the other hand, is for internal use by managers to help in decision-making. It does not follow strict rules and focuses on future planning, cost control, and business strategy. While financial accounting is prepared periodically (annually or quarterly), management accounting is done as needed (daily, weekly, or monthly).

2. How Accounting Give Us From Bookkeeping

Bookkeeping is the process of recording daily financial transactions, but accounting goes beyond that by interpreting, analyzing, and summarizing financial data.

Accounting helps in identifying errors, preparing financial statements, budgeting, tax planning, and ensuring compliance with financial regulations. Without accounting, bookkeeping would just be raw data with no real meaning for decision-making.

3. Uses of Accounting Information and Its Importance

1. Business Owners – Use accounting information to track profits, manage expenses, and make investment decisions.

2. Investors – Analyze financial statements to decide whether to invest in a company.

3. Managers – Use it for budgeting, planning, and controlling business operations.

4. Government – Uses it for tax collection, financial regulations, and economic planning.

5. Employees – Check financial stability to ensure job security and salary payments.

6. Banks and Lenders – Review financial reports before approving loans to businesses.

7. Suppliers – Assess financial strength before extending credit to a company.

Accounting information is crucial for decision-making, financial planning, and business growth.