Exercise 2 Direcrion: Identify each item in Column 2 by selecting one of the terms in Column 1: Column 1 A Social Accounting G Government Accounting B Financial Accounting H Tax Accounting C Cost Accounting 1 Information Systems Design D Management Accounting J Controllership E Audit and Assurance K Advanced Accounting F Environmental Accounting L Forensic Accounting Column 2 1. Emphasizes the preparation of financial statements. It is concerned with providing financial information to external users. 2. An area where there is detailed recording, classifying and summarizing of costs and expenses necessary to produce and sell a product or service. 3. This accounting area places emphasis on economic transactions and its impact on people, places and the environment. 4. The function of providing consulting services to improve client's use of the firm's capabilities and resources to ensure the achievement of its goals and objectives. . An accounting area which deals with an examination of the financial statements prepared by an independent accountant for the purpose of giving an opinion as to the fairness of its presentation. It is one of the most important services of a CPA to the public as it assures the reliability of the accounting reports prepared and submitted to the various users. 5. a 6. It deals with the preparation of tax returns, planning and structuring transactions and reports in compliance with tax laws and with a view of helping management choose an alternative way to save on tax liabilities. 7. Also known as fund accounting, it is applied to the different political branches or departments with a view of recording the different sources of funds, its proper allocation and utilization, 8. 9. An accounting area where an investigative accountant is hired to estimates losses and damages involving product liability, stock market manipulations and price fixing, etc. Deals with the development of a set of procedures, processes, and records, designed to capture operational and financial information necessary to make it possible for the business to run smoothly, make financial forecast and estimate its future outcome. Direction: From the following list of possible answers, identify what is being referred to in each of the statements given below: Business Entity Business Documents Creditor Net Income Partnership Government Management Profitability Single Proprietorship Service Business Liquidity Financial Statements Accounting Corporation Transactions Manufacturing Business Social Responsibility Merchandising Business 1. Simplest form of business organization which is owned by one person. 2. Derives its income mainly from the sale of service to clients. 3. Buys raw material, processes it and sells it as a finished product. 4. Communicates significant information about the business to the interested parties. 5. Business organization jointly owned and managed by two or more persons. 6. An artificial being created by operation of law where interest over its assets is expressed by the number of shares. 7. This interested party would like to know whether the business is solvent before it extends financial help. 8. An economic unit, regarded as separate from its owner or owners that enters into business transactions for profit. 9. Events or happenings which can be measured in terms of money and entered in the accounting records. 10. Reports which summarizes the financial condition of the business and its operating result. 11. The excess of revenues over costs and expenses. 12. Ethical behavior of a person or entity towards society- doing good for the well being of people. 13. Ability of the business to meet its current obligations. 14. This type of business buys goods which are ready for sale, 15. Original evidences of transactions which bring changes in the business values