AND 100% CORRECT ANSWERS|LATEST
Which of the following is the most correct definition of accounting? - ANSWER A
system for providing quantitative information, primarily financial in nature, about economic
entities that is intended to be useful in making economic decisions
What is NOT typically true of accounting information? - ANSWER The information
relates to future time periods.
Which is NOT a key component of the definition of accounting? -
ANSWER Qualitative
What is true about the double-entry system of bookkeeping? - ANSWER It was
developed in the 1300s−1400s in Italy.
Businesses use accounting systems to? - ANSWER Analyze transactions; Handle
routine bookkeeping tasks; Evaluate performance and health of the business.
What is not a function of accounting? - ANSWER Executing sales transactions for
organizations
What is NOT one of the three primary financial statements? - ANSWER Statement of
retained earnings
Generally accepted accounting principles are? - ANSWER Developed by accounting
rule makers
1
,The initials GAAP stand for? - ANSWER Generally Accepted Accounting Principles
Which is NOT a service typically provided by large public accounting firms? -
ANSWER Making management decisions
The organization that develops worldwide accounting standards is the? -
ANSWER International Accounting Standards Board (IASB)
The initials CPA stand for? - ANSWER Certified Public Accountant
Which of the following financial statements reports a company's resources, obligations, and
owner's equity? - ANSWER Balance sheet
Which of the following financial statements reports the excess of a company's revenues over
its expenses? - ANSWER Income statement
Which of the following financial statements reports the amount of cash collected and paid
out by a company? - ANSWER Statement of cash flows
The emphasis in financial accounting is on which of the following external user groups? -
ANSWER Investors and creditors
The primary internal group that uses accounting information is? -
ANSWER Management
Internal reports are generally used by? - ANSWER Management
2
, Which of the following is NOT an external user of financial information? -
ANSWER Management
Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? -
ANSWER It is a government agency
Generally accepted accounting principles are? - ANSWER Developed by accounting
rule makers
The current standard-setting board for accounting in the private sector is the? -
ANSWER Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - ANSWER Securities and Exchange
Commission (SEC)
Which of the following is NOT a service typically provided by large public accounting firms? -
ANSWER Making management decisions
The initials CPA stand for? - ANSWER Certified Public Accountant
Standards established by the International Accounting Standards Board are referred to as? -
ANSWER International Financial Accounting Standards
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - ANSWER the theoretical necessity of a common set of accounting
standards
Increased federal oversight of the audit process resulted from the passage of the following
act of Congress? - ANSWER Sarbanes-Oxley Act
3
Which of the following is the most correct definition of accounting? - ANSWER A
system for providing quantitative information, primarily financial in nature, about economic
entities that is intended to be useful in making economic decisions
What is NOT typically true of accounting information? - ANSWER The information
relates to future time periods.
Which is NOT a key component of the definition of accounting? -
ANSWER Qualitative
What is true about the double-entry system of bookkeeping? - ANSWER It was
developed in the 1300s−1400s in Italy.
Businesses use accounting systems to? - ANSWER Analyze transactions; Handle
routine bookkeeping tasks; Evaluate performance and health of the business.
What is not a function of accounting? - ANSWER Executing sales transactions for
organizations
What is NOT one of the three primary financial statements? - ANSWER Statement of
retained earnings
Generally accepted accounting principles are? - ANSWER Developed by accounting
rule makers
1
,The initials GAAP stand for? - ANSWER Generally Accepted Accounting Principles
Which is NOT a service typically provided by large public accounting firms? -
ANSWER Making management decisions
The organization that develops worldwide accounting standards is the? -
ANSWER International Accounting Standards Board (IASB)
The initials CPA stand for? - ANSWER Certified Public Accountant
Which of the following financial statements reports a company's resources, obligations, and
owner's equity? - ANSWER Balance sheet
Which of the following financial statements reports the excess of a company's revenues over
its expenses? - ANSWER Income statement
Which of the following financial statements reports the amount of cash collected and paid
out by a company? - ANSWER Statement of cash flows
The emphasis in financial accounting is on which of the following external user groups? -
ANSWER Investors and creditors
The primary internal group that uses accounting information is? -
ANSWER Management
Internal reports are generally used by? - ANSWER Management
2
, Which of the following is NOT an external user of financial information? -
ANSWER Management
Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? -
ANSWER It is a government agency
Generally accepted accounting principles are? - ANSWER Developed by accounting
rule makers
The current standard-setting board for accounting in the private sector is the? -
ANSWER Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - ANSWER Securities and Exchange
Commission (SEC)
Which of the following is NOT a service typically provided by large public accounting firms? -
ANSWER Making management decisions
The initials CPA stand for? - ANSWER Certified Public Accountant
Standards established by the International Accounting Standards Board are referred to as? -
ANSWER International Financial Accounting Standards
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - ANSWER the theoretical necessity of a common set of accounting
standards
Increased federal oversight of the audit process resulted from the passage of the following
act of Congress? - ANSWER Sarbanes-Oxley Act
3
