Question

Stevenson, Ross, and Warner (SRW) ​ Maddie is the CEO of Stevenson, Ross, and Warner (SRW), a regional accounting firm. SRW offers services in most areas of accounting, including auditing and consulting services. The firm must follow the GAAP rules, just like any other accounting firm. If there are information gaps that are not addressed and resolved by the firm, SRW could be considered a violator of the Sarbanes-Oxley Act. Maddie understands what must be done and wants every employee of the firm to understand that they have to follow all the rules and regulations. Like any other industry, accounting is a competitive industry and employees of accounting firms must be productive, progressive, and well trained. Refer to Stevenson, Ross, and Warner. One of SRW's clients is ABC Electronics. SRW develops ABC Electronics' statements and reports for ABC's stockholders, financial analysts, and bankers. These services can be classified as which of the following?A. Non-accounting servicesB. Tax accountingC. Financial accountingD. Managerial accountingE. Cost accounting

Answer 1

Answer:

C. Financial accounting

Explanation:

Financial Accounting simply involves the elaboration of financial statements, and the further analysis of those statements.

Financial statements are mainly three:

• The balance sheet, which shows a firm's balance of assets, liabilities and equity,
• The income statement, which display a firm's statement of revenue, costs and profit,
• The cash flow, which presents the state of the firm's liquid assets (cash and equivalents).

As stated in the question, SRW develops financial statements that are later analyzed by ABC's stockholders, financial analysts and bankers, in other words, SRW does the financial accounting for ABC.