1 - JustAnswer



How do you think accounting is relevant to your life or profession? Why is it required for your program of study?

Accounting plays an important role is man’s life. A sound understanding of accounting will bring better management of the financial aspect of living. Personal planning, financial planning, education expenses, car amortization and income taxes are based on this information system. In Healthcare Information Management, accounting is important because it will help primarily in analysis and decision making. For example, understanding the clinical context of costs and the rules for reimbursement improves organizational decision making.

1.3 Why does accounting rely on inexact or approximate measure?

Accounting relies on inexact or approximate measures because many accounts in financial statements are dependent on judgment about future events and on an assessment of management intent. For instance, an equipment purchase by the company years ago is subject to wear and tear (depreciation) as a natural process, thus, affects the functionality and value of the equipment. The estimation of depreciation involves significant management judgment.

1.5 The FASB’s conceptual framework set forth the Board’s views on which topics?

The FASB's Conceptual Framework sets forth the Board's views on the: (1) objectives of financial reporting, (2) desired characteristics of accounting information, (3) elements of financial statements, (4) criteria for deciding what information to include in financial statements, and (5) valuation concepts relating to financial statement amounts.

1.6 Use the web to find the home page of the PCAOB. What are the four primary activities of the PCAOB ?

The four primary activities of the PCAOB are: (1) registration, (2) inspections, (3) standard setting, and (4) enforcement.

1.8 List three professional certifications offered in accounting and the organizations that offer them.

Three of the certifications offered in accounting and the organizations that offer them are the following: (a) Certified Public Accountants (CPA)—each state separately licenses CPAs, although the CPA exam is a uniform national exam that is prepared and graded by the AICPA; (b) Certified Management Accountant (CMA)—this certification is offered by the Institute of Management Accountants; and (c) Certified Internal Auditor (CIA)— this certification is offered by the Institute of Internal Auditors

1.10 List three accounting-related skills that are useful to many people in their personal lives.

Three of accounting related skills that are useful to many people in their personal lives are: (a) Personal Budgeting and Finance; (b) Evaluating Loan Terms; and (c) Evaluating Investing Decisions.

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