AND 100% CORRECT ANSWERS|LATEST
1.1 Which of the following is NOT a key component of the definition of accounting? -
ANSWER Qualitative
1.1 Which of the following is NOT a function of accounting - ANSWER Executing
sales transactions for organizations
1.1 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.
1.1 Businesses use accounting systems to - ANSWER Analyze transactions
Handle routine bookkeeping tasks
Evaluate the performance and health of the business
**All of these are correct
1.1 Which of the following is NOT typically true of accounting information? -
ANSWER The information relates to future time periods.
1.2 Which of the following is NOT one of the three primary financial statements? -
ANSWER Statement of retained earnings
1.2 Which of the following financial statements reports a company's resources, obligations,
and owner's equity? - ANSWER Balance sheet
1
,1.2 Which of the following financial statements reports the excess of a company's revenues
over its expenses? - ANSWER Income statement
1.2 Which of the following financial statements reports the amount of cash collected and
paid out by a company? - ANSWER Statement of cash flows
1.3 The emphasis in financial accounting is on which of the following external user groups? -
ANSWER Investors and creditors
1.3 The primary internal group that uses accounting information is -
ANSWER Management
1.3 Internal reports are generally used by - ANSWER Management
1.3 Which of the following is NOT an external user of financial information -
ANSWER Management
1.4 Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? -
ANSWER It is a government agency
1.4 Generally accepted accounting principles are - ANSWER Developed by
accounting rule makers
1.4 The initials GAAP stand for - ANSWER Generally Accepted Accounting Principles
1.4 The current standard-setting board for accounting in the private sector is the -
ANSWER Financial Accounting Standards Board (FASB)
2
,1.5 Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - ANSWER Securities and Exchange
Commission (SEC)
1.5 The organization that develops worldwide accounting standards is the -
ANSWER International Accounting Standards Board (IASB)
1.5 The initials CPA stand for - ANSWER Certified Public Accountant
1.5 Which of the following is NOT a service typically provided by large public accounting
firms? - ANSWER Making management decisions
1.5 Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? -
ANSWER Internal Revenue Service
1.6 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
1.6 The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices - ANSWER True
1.6 With the current state of information technology, investors outside a company are now
allowed access to a company's internal database of financial information and do their own
customized analysis of a firm's performance. - ANSWER False
While the technology may be available, companies are still not allowing outsiders access to
their internal accounting records.
1.6 Increased federal oversight of the audit process resulted from the passage of the
following act of Congress - - ANSWER Sarbanes-Oxley Act
3
, 2.1 A borrower benefits from providing financial information regarding income and expenses
in the form of a lower interest rate on the loan because of reduced uncertainty for the
lender with regard to repayment - ANSWER True
2.1 Which of the following is NOT one of the three primary financial statements? -
ANSWER The Statement of Retained Earnings
2.1 One reason for a company's preparing and providing financial statements is to reduce
uncertainty for an investor regarding the firm's future financial performance. -
ANSWER true
2.2 Which of the following types of accounts are NOT found on the balance sheet? -
ANSWER Revenues
2.2 Markanich Company purchased land for $90,000 in 2010.
In 2013, the land is valued at $115,000.
The land would appear on the company's books in 2013 at - ANSWER $90,000
2.2 Which of the following would be considered a long-term liability? -
ANSWER Mortgage payable
2.2 Which of the following accounts is considered to be the most liquid? -
ANSWER Cash
2.2 The basic accounting equation is - ANSWER Assets = Liabilities + Owners' Equity
2.3 Which of the following would be included on an income statement? -
ANSWER Rent expense
4
1.1 Which of the following is NOT a key component of the definition of accounting? -
ANSWER Qualitative
1.1 Which of the following is NOT a function of accounting - ANSWER Executing
sales transactions for organizations
1.1 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.
1.1 Businesses use accounting systems to - ANSWER Analyze transactions
Handle routine bookkeeping tasks
Evaluate the performance and health of the business
**All of these are correct
1.1 Which of the following is NOT typically true of accounting information? -
ANSWER The information relates to future time periods.
1.2 Which of the following is NOT one of the three primary financial statements? -
ANSWER Statement of retained earnings
1.2 Which of the following financial statements reports a company's resources, obligations,
and owner's equity? - ANSWER Balance sheet
1
,1.2 Which of the following financial statements reports the excess of a company's revenues
over its expenses? - ANSWER Income statement
1.2 Which of the following financial statements reports the amount of cash collected and
paid out by a company? - ANSWER Statement of cash flows
1.3 The emphasis in financial accounting is on which of the following external user groups? -
ANSWER Investors and creditors
1.3 The primary internal group that uses accounting information is -
ANSWER Management
1.3 Internal reports are generally used by - ANSWER Management
1.3 Which of the following is NOT an external user of financial information -
ANSWER Management
1.4 Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? -
ANSWER It is a government agency
1.4 Generally accepted accounting principles are - ANSWER Developed by
accounting rule makers
1.4 The initials GAAP stand for - ANSWER Generally Accepted Accounting Principles
1.4 The current standard-setting board for accounting in the private sector is the -
ANSWER Financial Accounting Standards Board (FASB)
2
,1.5 Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - ANSWER Securities and Exchange
Commission (SEC)
1.5 The organization that develops worldwide accounting standards is the -
ANSWER International Accounting Standards Board (IASB)
1.5 The initials CPA stand for - ANSWER Certified Public Accountant
1.5 Which of the following is NOT a service typically provided by large public accounting
firms? - ANSWER Making management decisions
1.5 Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? -
ANSWER Internal Revenue Service
1.6 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
1.6 The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices - ANSWER True
1.6 With the current state of information technology, investors outside a company are now
allowed access to a company's internal database of financial information and do their own
customized analysis of a firm's performance. - ANSWER False
While the technology may be available, companies are still not allowing outsiders access to
their internal accounting records.
1.6 Increased federal oversight of the audit process resulted from the passage of the
following act of Congress - - ANSWER Sarbanes-Oxley Act
3
, 2.1 A borrower benefits from providing financial information regarding income and expenses
in the form of a lower interest rate on the loan because of reduced uncertainty for the
lender with regard to repayment - ANSWER True
2.1 Which of the following is NOT one of the three primary financial statements? -
ANSWER The Statement of Retained Earnings
2.1 One reason for a company's preparing and providing financial statements is to reduce
uncertainty for an investor regarding the firm's future financial performance. -
ANSWER true
2.2 Which of the following types of accounts are NOT found on the balance sheet? -
ANSWER Revenues
2.2 Markanich Company purchased land for $90,000 in 2010.
In 2013, the land is valued at $115,000.
The land would appear on the company's books in 2013 at - ANSWER $90,000
2.2 Which of the following would be considered a long-term liability? -
ANSWER Mortgage payable
2.2 Which of the following accounts is considered to be the most liquid? -
ANSWER Cash
2.2 The basic accounting equation is - ANSWER Assets = Liabilities + Owners' Equity
2.3 Which of the following would be included on an income statement? -
ANSWER Rent expense
4