2. 3. 1. The technical phase of accounting. c. Summarizing d. Classifying a. Interpreting b. Recording Includes the design, installation and improvements of the firm's general accounting system. a. Tax services b. Auditing Provides management plan for future operations. a. Internal auditing b. General accounting c. Management advisory service d. Financial accounting service c. Cost accounting d. Budgeting 4. Carefully examines, tests, and checks accuracy of the accounting records. a. Bookkeeper b. Accountants c. Budget officer d. Auditor 5. In this phase of accounting, items are sorted and grouped. 6. 7. a. Classifying b. Summarizing c. Recording d. Interpreting Serve as guide in accomplishing data and preparing reports. a. Accounting reports b. Accounting information c. Accounting opinion d. Accounting principles Financial accounting is the area of accounting that emphasizes reporting to a. Management b. Regulatory bodies 8. 9. c. Internal auditors d. Creditors and investors Which of the following is not a basic assumption underlying financial accounting. a. Going concern assumption b. Periodicity assumption c. Economic entity assumption. d. Historical cost assumption Which of the following statements best describes the term "going concern"? a. When liabilities exceed assets. b. The ability of the entity to continue in operation for the foreseeable future c. The potential to contribute to the flow of cash and cash equivalents to the entity d. The expenses of an entity exceed its income 10. Which basic assumptions may not be followed when an entity in bankruptcy reports financial results? Economic entity assumption a. b. Going concern assumption C. Periodicity assumption Monetary assumption