C213 Accounting for decision makers
quizzes with accurate right answers.
Businesses use accounting systems to: ANS - Analyze transactions.
handle routine bookkeeping tasks.
evaluate the performance and financial health of the business.
Which of the following is NOT a function of accounting? ANS - Executing sales transactions for
organizations.
Which of the following is NOT typically true of financial accounting information? ANS - The information
relates to future time periods.
Which of the following financial statements reports the amount of cash collected and paid out by a
company? ANS - Statement of cash flows.
Which of the following is NOT one of the three primary financial statements? ANS - Statement of
retained earnings.
Which of the following financial statements reports a company's resources, obligations, and ownership?
ANS - Balance sheet.
Which of the following financial statements reports the excess of a company's revenues over its
expenses? ANS - Income statement.
Which of the following is NOT an external user of accounting information? ANS - Management
The emphasis in financial accounting is to provide financial information to which of the following user
groups? ANS - Investors and creditors.
, The current standard setting organization for financial accounting in the United States is the ANS -
Financial accounting standards board (FASB)
Which of the following is NOT true about the financial accounting standards board (FASB)? ANS - It's a
government agency.
Which of the following organizations has specific legal authority to establish financial accounting
standards for publicly held U.S. companies? ANS - Security and exchange commission (SEC)
Increased federal oversight of the audit process resulted from the passage of the following act of
congress: ANS - Sarbanes-Oxley Act.
Which of the following types of accounts are NOT found on the balance sheet? ANS - Revenues.
The basic accounting equation is ANS - Assets = Liabilities + Owner's Equity
Which of the following accounts is the most liquid? ANS - Cash
Which of the following distinguishes between current and long-term assets? ANS - Classified balance
sheet
Cooper company purchased land for 90,000 in 2010. In 2013, the land is valued at 155,000. The land
would appear on the company's December 31, 2013 balance sheet at... ANS - 90,000
The financial statement that presents a summary of the revenues and expenses of a business for a
specific period of time, such as a year, is call a(n) ANS - Income statement
Which of the following statements is TRUE regarding the statement of cash flows prepared using the
direct method? ANS - A statement of cast flows prepared under the direct method is typically easier for
users to understand than a statement of cash flows prepared under the indirect method.
quizzes with accurate right answers.
Businesses use accounting systems to: ANS - Analyze transactions.
handle routine bookkeeping tasks.
evaluate the performance and financial health of the business.
Which of the following is NOT a function of accounting? ANS - Executing sales transactions for
organizations.
Which of the following is NOT typically true of financial accounting information? ANS - The information
relates to future time periods.
Which of the following financial statements reports the amount of cash collected and paid out by a
company? ANS - Statement of cash flows.
Which of the following is NOT one of the three primary financial statements? ANS - Statement of
retained earnings.
Which of the following financial statements reports a company's resources, obligations, and ownership?
ANS - Balance sheet.
Which of the following financial statements reports the excess of a company's revenues over its
expenses? ANS - Income statement.
Which of the following is NOT an external user of accounting information? ANS - Management
The emphasis in financial accounting is to provide financial information to which of the following user
groups? ANS - Investors and creditors.
, The current standard setting organization for financial accounting in the United States is the ANS -
Financial accounting standards board (FASB)
Which of the following is NOT true about the financial accounting standards board (FASB)? ANS - It's a
government agency.
Which of the following organizations has specific legal authority to establish financial accounting
standards for publicly held U.S. companies? ANS - Security and exchange commission (SEC)
Increased federal oversight of the audit process resulted from the passage of the following act of
congress: ANS - Sarbanes-Oxley Act.
Which of the following types of accounts are NOT found on the balance sheet? ANS - Revenues.
The basic accounting equation is ANS - Assets = Liabilities + Owner's Equity
Which of the following accounts is the most liquid? ANS - Cash
Which of the following distinguishes between current and long-term assets? ANS - Classified balance
sheet
Cooper company purchased land for 90,000 in 2010. In 2013, the land is valued at 155,000. The land
would appear on the company's December 31, 2013 balance sheet at... ANS - 90,000
The financial statement that presents a summary of the revenues and expenses of a business for a
specific period of time, such as a year, is call a(n) ANS - Income statement
Which of the following statements is TRUE regarding the statement of cash flows prepared using the
direct method? ANS - A statement of cast flows prepared under the direct method is typically easier for
users to understand than a statement of cash flows prepared under the indirect method.
