(Test Bank) Accounting: An Introduction Australian Edition

Atrill, 8

Business

Test Bank

8th Edition

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Test Bank for Accounting: An Introduction Australian Edition, The downloadable file consists of 306 pages, and the total size of the file is 2.94 MB. Purchase now only for highly discounted price.

Author(s): Atrill

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Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e Atrill, Accounting 8e Chapter 1: Introduction to accounting LO 1.1 Explain the nature and role of accounting Multiple choice: Choose the alternative(s) that best completes the statement or answers the question. 1. Which of the following is the most important function of an accounting system? A. provide information for decision-making, planning and control. B. keep employees from embezzling funds. C. prepare accounting reports D. collect and record data. Answer: A Difficulty: Moderate Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 8 – Application of knowledge 2. The best description of the primary purpose of providing accounting information is: A. to allow the preparation of a taxation return. B. to calculate the bank account balance. C. to assist users in making informed decisions D. to enable the financial statements to be prepared. Answer: C Difficulty: Basic Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 8 – Application of knowledge 3. The stages of an accounting system are: A. evaluation, processing, output. B. identification, recording, analysis, reporting. C. setting objectives, planning, analysis. D. none of the above. Answer: B 2 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e Difficulty: Complex Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 3 – Analytical thinking 4. What are the four key qualities of accounting information? A. relevance, materiality, comparability, and understandability. B. identification, analysis, planning, and timeliness. C. planning, control, comparability and analysis D. understandability, identification, analysis, and relevance. Answer: A Difficulty: Complex Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 8 – Application of knowledge 5. The best explanation of relevance is: A. ensuring that information is useful for decision-making. B. ensuring that information is expressed as clearly as possible. C. ensuring the benefit of the information is greater than the cost of providing it. D. ensuring that information is free from bias. Answer: A Difficulty: Moderate Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 8 – Application of knowledge 6. The quality of accounting information that requires items that are basically the same to be treated in the same manner is: A. relevance. B. timeliness. C. understandability. D. comparability. Answer: D Difficulty: Moderate Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 8 – Application of knowledge 7. Which of these is a reason why achieving the maximum possible profit in a particular year may not be in the best interests of a business? A. Concentrating on the short-term may have detrimental effects in the long-term. B. It may be achieved by causing environmental problems, which give the business a bad reputation. C. If it is achieved with high-risk strategies, such as excessive reliance on borrowings, it could lead to disaster in the longer term. D. All of the above. Answer: D Difficulty: Moderate Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 3 – Analytical thinking 3 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e 8. Which test determines if an item of accounting information is worthwhile collecting? A. cost test. B. cost/benefit test. C. worthwhile test. D. validation test. Answer: B Difficulty: Moderate Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 3 – Analytical thinking 9. The characteristic of accounting information that requires financial reports to be expressed as clearly as possible and to be capable of being understood by those they are addressed to, is known as: A. understandability. B. control. C. cost versus benefit test. D. relevance. Answer: A Difficulty: Moderate Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 1 – Written and oral communication 10. The statement concerning the key qualities of accounting information that is untrue is: A. the qualities are frequently in conflict. B. relevant information may help to predict future events or confirm past events. C. relevant information often contains a degree of subjectivity. D. None of the statements is untrue, i.e., all are true statements. Answer: D Difficulty: Complex Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 3 – Analytical thinking 11. Which of these is not one of the key qualities of accounting information? A. Timeliness. B. Comparability. C. Relevance . D. Control. Answer: D Difficulty: Complex Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 3 – Analytical thinking 12. Which statement concerned with establishing the costs and benefits of accounting information is true? A. It is usually easier to establish benefits than costs. B. It is normally easy to establish both the costs and the benefits. C. Both the costs and benefits are normally difficult to assess. 4 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e D. The costs and benefits should be ignored when deciding on what accounting information should be produced. Answer: C Difficulty: Basic Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 3 – Analytical thinking True/False: Write 'T' if the statement is true and 'F' if the statement is false. 13. When accounting information has the potential to change decision-making it is said to be understandable. A. True B. False Answer: B Difficulty: Moderate Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 3 – Analytical thinking Essay: Write your answer in the space provided or on a separate sheet of paper. 14. Briefly discuss how accounting information is relevant to managers of a business. Answer: Student answers may vary, but may include some/all of the following: ● Help managers make decisions with regards to development/termination of new products or services; changing pricing or quantity of products; whether borrowing money may be required to finance the business; scaling up or down of businesses ; methods of purchasing, production or distribution. Difficulty: Moderate Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 3 – Reflective Thinking 15. Briefly explain the meaning of each of the key qualitative characteristics of accounting information: relevance, comparability and understandability. Also explain how the cost/benefit test acts as a limit on the application of these characteristics. Answer: Relevance means that accounting information should have the ability to influence decision-making. Relevance may refer to helping to confirm past events or assisting in the prediction of future events. If information is not relevant to decision-making, it is not useful and should not be produced. Comparability means that valid comparisons can be made between accounting reports across a number of accounting periods. For comparisons to be valid, items which are basically the same must be consistently measured and presented in the same manner. Understandability means that to be most useful, accounting reports should be expressed as clearly as possible and should be capable of being understood by the user groups they are prepared for. 5 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e The cost/benefit test provides a limit on the production of relevant, comparable, and understandable accounting information as, even if the information has all four qualities, it only makes economic sense to produce it if the benefit of its being available is greater than the cost of providing it. A problem of applying the cost/benefit test is that, in practice, both the costs and the benefits of accounting information are difficult to identify with accuracy. Difficulty: Moderate Learning Objective 1.1: Explain the nature and role of accounting A-Head: Nature and role of accounting AACSB: 1 – Written and oral communication LO 1.2 List the main groups that use the accounting reports of a business entity, and summarise the different uses that can be made of accounting information Multiple choice: Choose the alternative(s) that best completes the statement or answers the question. 16. Which of these groups is a user of financial information? A. Managers. B. Lenders. C. Owners. D. All of the above Answer: D Difficulty: Basic Learning Objective 1.2: List the main groups that use the accounting reports of a business entity, and summarise the different uses that can be made of accounting information A-Head: Users of accounting information AACSB: 3 – Analytical thinking 17. Which group of users is most likely to require accounting information to assess the ability of a business to pay interest and repay a loan? A. employees. B. creditors. C. customers. D. taxation department. Answer: B Difficulty: Basic Learning Objective 1.2: List the main groups that use the accounting reports of a business entity, and summarise the different uses that can be made of accounting information A-Head: Users of accounting information AACSB: 3 – Analytical thinking 18. The main source of information for shareholders is: 6 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e A. departmental reports. B. management reports. C. external reports. D. internal reports. Answer: C Difficulty: Basic Learning Objective 1.2: List the main groups that use the accounting reports of a business entity, and summarise the different uses that can be made of accounting information A-Head: Users of accounting information AACSB: 1 – Written and oral communication LO 1.3 Compare and contrast financial and management accounting Multiple choice: Choose the alternative(s) that best completes the statement or answers the question. 19. What is the primary goal of management accounting? A. To provide information that can be quantified in monetary terms. B. To provide information to shareholders. C. To provide information that conforms to the accounting regulations. D. To provide information that improves the quality of managers' decisions. Answer: D Difficulty: Basic Learning Objective1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 8 – Application of knowledge 20. Which statement is correct? A. Financial reports are prepared for internal users whereas management reports are prepared for external users. B. Financial reports are produced at more frequent intervals than management reports. C. Financial reports reflect past performance whereas management reports are concerned with the future as well as the past. D. Financial reports provide more forecast data than management reports. Answer: C Difficulty: Complex Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 1 – Written and oral communication 21. Standardised formats are most relevant to: A. departmental reports. B. management reports. C. external financial reports. D. internal reports. Answer: C 7 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e Difficulty: Basic Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 1 – Written and oral communication 22. Management reports, compared to financial reports, are: A. prepared less frequently. B. prepared more frequently. C. prepared with the same frequency. D. prepared infrequently. Answer: B Difficulty: Basic Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 1 – Written and oral communication 23. Management reports, compared to financial reports, are: A. summarised. B. aggregated. C. standardised. D. detailed. Answer: D Difficulty: Basic Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 1 – Written and oral communication 24. Which of t he statements concerning differences between financial and management accounting is false? A. management accounting is less constrained than financial accounting. B. managers have much more control over the form and content of their reports. C. the distinction between the two areas, to some extent, reflects differences in access to financial information. D. there is no overlap between management accounting and financial accounting. Answer: D Difficulty: Moderate Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 3 – Analytical thinking 25. Which of the following are differences between management and financial accounting? A. Nature of reports produced B. Frequency of reports C. Level of detail in reports D. All of the above Answer: D Difficulty: Moderate Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 1 – Written and oral communication 26. Financial accounting reports, compared to management reports, tend to be: 8 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e A. general purpose. B. qualitative. C. unstructured. D. detailed. Answer: A Difficulty: Complex Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 1 – Written and oral communication 27. How frequently is the set of financial reports made available for external publication by an entity typically produced? A. fortnightly B. daily C. weekly D. yearly Answer: D Difficulty: Basic Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 1 – Written and oral communication 28. Management accounting reports are principally used by managers to: A. report to shareholders. B. reconcile with the financial accounting reports. C. calculate the amount of taxation owed to the government. D. control the operations of an entity on a regular basis. Answer: D Difficulty: Basic Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 8 – Application of knowledge 29. Financial accounting reports concentrate on: A. current events. B. current and future events. C. past events. D. future events. Answer: C Difficulty: Moderate Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 1 – Written and oral communication 30. Management accounting reports tend to contain: A. both financial and non-financial information. B. financial information only. C. information that complies with the accounting standards. D. non-financial information only. Answer: A Difficulty: Moderate Learning Objective 1.3: Compare and contrast financial and management accounting 9 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e A-Head: Financial and management accounting AACSB: 3 – Analytical thinking 31. Why do businesses tend to resist providing forecast data to those outside the organisation? A. because it is too costly B. because of the fear of the loss of competitive advantage C. because the data is inaccurate D. because it is too difficult Answer: B Difficulty: Complex Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 3 – Analytical thinking Essay: Write your answer in the space provided or on a separate sheet of paper. 32. Briefly discuss the main differences between financial accounting and management accounting. Answer: Student answers will vary but may include some/all of the following: ● The definitions of management accounting and financial accounting ● Reports that are produced and their respective detail ● Regulations ● Reporting interval ● Time that the reports reflect—performance to date versus expected performance ● Range of information provided Difficulty: Moderate Learning Objective 1.3: Compare and contrast financial and management accounting A-Head: Financial and management accounting AACSB: 3 – Analytical thinking LO 1.4 Identify the main purpose of a business (while recognising a range of other influences), and explain the traditional risk-return relationship Multiple choice: Choose the alternative(s) that best completes the statement or answers the question. 33. Which of the following best represents a possible objective of a business ? A. financial survival. B. maximise profit. C. maximise sales. D. all of the above. Answer: D Difficulty: Basic Learning Objective 1.4: Identify the main purpose of a business (while recognising a range of other influences), and explain the traditional risk-return relationship A-Head: What is the financial objective of a business? 10 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e AACSB: 3 – Analytical thinking 34. The commonly accepted overall financial objective of business can best be summed up as: A. enhancing wealth. B. promoting good corporate relations. C. satisfying everyone within the organisation. D. stabilising profit. Answer: A Difficulty: Moderate Learning Objective 1.4: Identify the main purpose of a business (while recognising a range of other influences), and explain the traditional risk-return relationship A-Head: What is the financial objective of a business? AACSB: 3 – Analytical thinking True/False: Write 'T' if the statement is true and 'F' if the statement is false. 35. The goal of business in relation to profit is generally taken as profit maximisation. A. True B. False Answer: A Difficulty: Basic Learning Objective 1.4: Identify the main purpose of a business (while recognising a range of other influences), and explain the traditional risk-return relationship A-Head: What is the financial objective of a business? AACSB: 8 – Application of knowledge LO 1.5 Provide an overview of the main financial reports prepared by the business Multiple choice: Choose the alternative(s) that best completes the statement or answers the question. 36. What does a statement of financial position show? A. the details of how much profit was earned in the period B. the cash movements that took place over a particular period C. the financial position at the end of the period D. the change in financial position over a particular period Answer: C Difficulty: Moderate Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 1 – Written and oral communication 37. Another name for the statement of comprehensive income is: A. statement of financial position. 11 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e B. balance sheet. C. statement of change in owners' equity. D. statement of financial performance. Answer: D Difficulty: Basic Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 1 – Written and oral communication 38. What is another name commonly used for the balance sheet? A. profit and loss statement B. statement of financial position C. statement of financial performance D. statement of change in owners' equity. Answer: B Difficulty: Basic Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 1 – Written and oral communication 39. The accounting report that is specifically designed to answer the question, 'What cash movements took place over a particular period?' is: A. the statement of financial position. B. the statement of cash flows. C. the statement of comprehensive income. D. all of the above. Answer: B Difficulty: Basic Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 3 – Analytical thinking 40. Which accounting report is specifically designed to answer the question, 'What profit was earned in a particular period?' A. Statement of comprehensive income. B. Statement of financial position. C. Statement of cash flows. D. All of the above. Answer: A Difficulty: Basic Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 3 – Analytical thinking 41. Which accounting report is prepared at a particular point of time rather than over a period of time? A. Statement of comprehensive income. B. Statement of change in owners' equity. 12 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e C. Statement of financial position. D. Both B and C. Answer: C Difficulty: Basic Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 1 – Written and oral communication 42. Calculate the cash available at the end of the day if cash at the beginning is $650, receipts from customers are $5 00 and payments to suppliers are $300. A. $(50). B. $ 850. C. $750. D. $1,45 0. Answer: B Difficulty: Basic Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 3 – Analytical thinking 43. Paulo commenced business with $150 cash. He purchased goods for $75 that were later sold for $125. The statement of financial position, after the sale, would show a total business wealth of: A. $150. B. $200. C. $50. D. $100. Answer: B Difficulty: Complex Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 3 – Analytical thinking 44. Which financial reports comprise the ‘final accounts’? A. statement of cash flows and statement of comprehensive income. B. statement of comprehensive income and statement of financial position. C. statement of comprehensive income, statement of financial position, statement of cash flows and statement of change in owners' equity. D. statement of financial position, statement of cash flows and statement of comprehensive income. Answer: C Difficulty: Basic Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 1 – Written and oral communication 45. Which statement is true? 13 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e A. The statement of cash flows explains the changes between the statement of comprehensive income and the statement of financial position. B. The statement of financial position links two statements of comprehensive income. C. The statement of cash flows summarises the movements in the bank account over an accounting period. D. None of the statements is true. Answer: C Difficulty: Complex Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 1 – Written and oral communication 46. Which accounting reports are concerned with measuring flows over a period of time? A. statement of comprehensive income and statement of financial position. B. statement of comprehensive income and statement of cash flows. C. statement of cash flows and statement of financial position. D. statement of comprehensive income, statement of cash flows and statement of financial position. Answer: B Difficulty: Basic Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 8 – Application of knowledge 47. The financial statement which shows all the changes in the owners' interest in the net assets of the business is: A. statement of changes in owners' equity. B. statement of cash flows. C. statement of comprehensive income. D. none of the above. Answer: A Difficulty: Basic Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 1 – Written and oral communication Short answer: Write the word or phrase that best completes each statement or answers the question. 48. Calculate the cash available at the beginning of the day if cash at the end is $950, receipts from customers are $360 and payments to suppliers are $425. Answer: $885 Difficulty: Moderate Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 3 – Analytical thinking 14 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e Essay: Write your answer in the space provided or on a separate sheet of paper. 49. Set out the main purpose of each of the three main financial reports — the statement of comprehensive income, the statement of financial position, and the statement of cash flows — and briefly explain how each achieves its purpose. Answer: The purpose of the statement of comprehensive income is to show how much profit was generated by the entity from its operating activities during a particular period. This is achieved by recording all the income earned in the period and deducting from it all the expenses incurred in earning that income. If income exceeds expenses, a profit is earned. If income is less than expenses, there is a loss. The purpose of the statement of financial position is to show the financial position of the entity at the end of an accounting period. This is achieved by listing the assets controlled by the entity on a particular date and deducting all amounts owed to parties other than the owner. Total assets held less liabilities owed is the amount of equity the owner has in the entity. Examples of assets owned are: cash at bank, inventory, land and buildings, equipment, motor vehicles. Examples of liabilities are amounts owing to creditors and lenders. The purpose of the statement of cash flows is to show the change in the cash position over a particular period and the movements in cash that caused that change. This is achieved by listing all inflows and outflows of cash for the period. If inflows exceed outflows, there has been a net increase in cash. If the opposite is true, then there has been a net outflow of cash. Difficulty: Complex Learning Objective 1.5: Provide an overview of the main financial reports prepared by the business A-Head: The main financial reports – an overview AACSB: 1 – Written and oral communication LO 1.6 Outline the main types of business ownership, describe the way in which a business is typically organised and managed, and explain the importance of accounting in a business context Multiple choice: Choose the alternative(s) that best completes the statement or answers the question. 50. The most complete description of the planning process for a business is: A. setting objectives and short-term plans. B. setting long-term objectives and long-term plans. C. setting objectives and detailed budgets. D. setting objectives, long-term plans, and short-term plans. Answer: D Difficulty: Basic Learning Objective 1.6: Outline the main types of business ownership, describe the way in which a business is typically organised and managed, and explain the importance of accounting in a business context A-Head: Business and accounting 15 Copyright ©2021 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781488625695/Atrill/Accounting/8e AACSB: 3 – Analytical thinking 51. The planning role within a company is principally undertaken by: A. consultants. B. managers. C. shareholders. D. lenders. Answer: B Difficulty: Basic Learning Objective 1.6: Outline the main types of business ownership, describe the way in which a business is typically organised and managed, and explain the importance of accounting in a business context A-Head: Business and accounting AACSB: 8 – Application of knowledge 52. Knowledge of the objectives or mission of a business will be most useful in assisting users of financial reports in understanding: A. the liquidity position of the business. B. why it is taking longer than it should to collect money from accounts receivable. C. the financial reporting cycle. D. what the business is trying to achieve. Answer: D Difficulty: Moderate Learning Objective 1.6: Outline the main types of business ownership, describe the way in which a business is typically organised and managed, and explain the importance of accounting in a business context A-Head: Business and accounting AACSB: 3 – Analytical thinking 53. Budgets are typically set for: A. one year. B. a decade. C. one month. D. five years. Answer: A Difficulty: Moderate Learning Objective 1.6: Outline the main types of business ownership, describe the way in which a business is typically organised and managed, and explain the importance of accounting in a business context A-Head: Business and accounting AACSB: 1 – Written and oral communication 54. Control is best defined as: A. making events conform to plan. B. making the directors perform according to plan. C. making the employees work harder. D. giving orders. Answer: A Difficulty: Moderate Learning Objective 1.6: Outline the main types of business ownership, describe the way in which a business is typically organised and managed, and explain the importance of accounting in a business context