An accounting system is used to Blank______.Multiple choice question.record sales transactions and generate customer receiptsrecord and summarize accounting data into reportsdistribute a company's investments evenlygenerate employee wages and benefits

Reviewing and evaluating records used to prepare a company's financial statements is referred to as Blank______.Multiple choice question.accountingauditingbookkeepingreporting

Fill in the Blank QuestionFill in the blank question.The method used to record and summarize accounting data into reports is called a(n) system.

The information and analysis that comes from managerial accounting is used to Blank______.Multiple choice question.provide information to potential investors of the firmprepare tax returns and financial statements required by the IRSassist managers inside the organization with their decision makingaudit the firm's business activities and verify the accuracy of financial statements

An advantage of the use of computers to maintain and compile accounting information is Blank______.Multiple choice question.no training requiredautomatic decision makingspeedease of programming

Accounting SystemsThere are five questions associated with this passagePeople typically use two types of accounting systems: a cash-based system and an accrual system. Several things need to be considered when choosing an accounting system. The two most important considerations are ease of use and need for accuracy.In a cash-based system, which is easy to use, you record transactions when the money is actually paid or received.An accrual accounting system is more difficult to understand, but it is more accurate than a cash-based system. In an accrual system, a transaction is recorded when you receive or provide a product or service, not when you pay or receive payment for the product or service.Assume you provided a service to a customer for $1,000 in May and received payment for it in June. You also purchased and received a $2,000 piece of equipment in May and paid for it in June.Under an accrual accounting system, in May you would record both the $1,000 for the service performed and the $2,000 for the equipment purchased. Under a cash-based system, in June you would record both the $1,000 payment received and the $2,000 payment made.The cash-based accounting system would give you an incorrect picture of your true financial status in May. It would appear that you had $1,000 more in cash than you actually did. Therefore, an accrual accounting system would provide a more accurate picture of how you are doing financially at any given point in time.What is the best reason to use an accrual accounting system?It is easy to use.It is easy to understand.It shows your real financial status.It is used by most people.It requires minimal effort.