Question

Homework i Saved Exercise 1-3 Describing accounting responsibilities LO C2 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. Area of Accounting Responsibilities 1. Enforcing tax laws 2. Preparing external financial statements 3. Planning transactions to minimize taxes 4. External auditing Internal auditing 6. Reviewing financial statements for criminal investigations 7. Estate planning 8. Consulting with treasurer on cash flows Financial accounting Managerial accounting Tax accounting < Prey 9 of 12 Next >

Answer 1

Solution:

1. Enforcing tax laws - Tax accounting

2. Preparing external financial statements - Financial accounting

3. Planning transactions to minimize tax - Tax accounting

4. External auditing - Financial accounting

5. Internal auditing - Managerial accounting

6. Review financial statements for criminal investigations - Financial accounting

7. Estate planning - Tax accounting

8. Consulting with treasurer on cash flows - Managerial accounting