Question

Many accounting professionals work in one of the following three areas:

A. Financial accounting
B. Managerial accounting
C. Tax accounting

Identify the area of accounting that is most involved in each of the following responsibilities:

1. Investigating violations of tax laws.
2. Planning transactions to minimize taxes.
3. Preparing external financial statements.
4. Reviewing reports for SEC compliance.
5. Internal auditing.
6. External auditing.
7. Cost accounting.
8. Budgeting.

Answer 1

Answer:

1. C.Tax accounting

2. C. Tax accounting

3. A. Financial accounting

4. C. Tax "

5. B. Managerial "

6. A. Financial "

7. B. Managerial "

8. B. Managerial "

Explanation:

Tax accounting: accounting methods focused on tax.

Financial accounting: summary, analysis and reporting of financial transactions.

Managerial accounting: analyzing and communicating financial data to managers.