D196 Practice Test Questions with Verified
Correct Answers
Unit 2: International Accounting Standards Board (IASB)
A committee formed to develop international accounting standards.
Unit 2: American Institute of Certified Public Accountants (AICPA)
A professional organization for CPAs in which membership is voluntary. Professional
Sanctions
Unit 2: Certified public accountant (CPA)
An accountant who has met specified professional requirements established by the AICPA
and local and state societies. A key service provided by CPAs is the performance of
independent audits of financial statements.
Unit 2: Securities and Exchange Commission (SEC)
The government body responsible for regulating the financial reporting practices of most
publicly owned corporations in connection with the buying and selling of stocks and
bonds. Legal Punishment
Unit 2: Governmental Accounting Standards Board (GASB)
An independent private organization that sets the accounting and financial reporting
standards for state and local governments following GAAP.
Unit 2: Generally accepted accounting principles (GAAP)
Authoritative guidelines that define accounting practice at a particular time in the United
States.
Unit 2: Financial Accounting Standards Board (FASB)
,the private board that establishes the generally accepted accounting principles used in the
practice of financial accounting
variety of backgrounds
not a government agency - no legal power to enforce the accounting standards
Unit 2: accounting system
The procedures and processes used by a business to analyze transactions, handle routine
bookkeeping tasks, and structure information so it can be used to evaluate the performance
and health of the business.
Unit 2: Accounting
Quantitative information, primarily financial in nature, about economic entities that is
intended to be useful in making economic decisions.
Unit 2: Quantitative
Accounting relates to numbers.
Unit 2: Financial
The health and performance of a business are affected by and reflected in many dimensions
Unit 2: Useful
The practice of accounting is supported by a long tradition of theory.
Unit 2: Decisions
Although accounting is the structured reporting of what has already occurred, this past
information can only be useful if it impacts decisions about the future.
Unit 2: The Decision Making Process
, Step 1: Identify Issue
Step 2: Gather Info
Step 3: Identify Alternatives
Step 4: Select Best Option
Unit 2: Revenues
The amount of assets created through the sale of goods and services.
Unit 2: Management accounting
The area of accounting concerned with providing internal financial reports to assist
management in making decisions.
Unit 2: Financial statements
Reports such as the balance sheet, income statement, and statement of cash flows, which
summarize the financial status and results of operations of a business entity.
Unit 2: Annual report
A document that summarizes the results of operations and financial status of a company for
the past year and outlines future plans.
Unit 2: Balance Sheet
Lists as of a point in time.
Provides Assets (resources)
Provide Liabilities (obligations)
Unit 2: Financial accounting
The area of accounting concerned with reporting financial information to interested external
parties.
Correct Answers
Unit 2: International Accounting Standards Board (IASB)
A committee formed to develop international accounting standards.
Unit 2: American Institute of Certified Public Accountants (AICPA)
A professional organization for CPAs in which membership is voluntary. Professional
Sanctions
Unit 2: Certified public accountant (CPA)
An accountant who has met specified professional requirements established by the AICPA
and local and state societies. A key service provided by CPAs is the performance of
independent audits of financial statements.
Unit 2: Securities and Exchange Commission (SEC)
The government body responsible for regulating the financial reporting practices of most
publicly owned corporations in connection with the buying and selling of stocks and
bonds. Legal Punishment
Unit 2: Governmental Accounting Standards Board (GASB)
An independent private organization that sets the accounting and financial reporting
standards for state and local governments following GAAP.
Unit 2: Generally accepted accounting principles (GAAP)
Authoritative guidelines that define accounting practice at a particular time in the United
States.
Unit 2: Financial Accounting Standards Board (FASB)
,the private board that establishes the generally accepted accounting principles used in the
practice of financial accounting
variety of backgrounds
not a government agency - no legal power to enforce the accounting standards
Unit 2: accounting system
The procedures and processes used by a business to analyze transactions, handle routine
bookkeeping tasks, and structure information so it can be used to evaluate the performance
and health of the business.
Unit 2: Accounting
Quantitative information, primarily financial in nature, about economic entities that is
intended to be useful in making economic decisions.
Unit 2: Quantitative
Accounting relates to numbers.
Unit 2: Financial
The health and performance of a business are affected by and reflected in many dimensions
Unit 2: Useful
The practice of accounting is supported by a long tradition of theory.
Unit 2: Decisions
Although accounting is the structured reporting of what has already occurred, this past
information can only be useful if it impacts decisions about the future.
Unit 2: The Decision Making Process
, Step 1: Identify Issue
Step 2: Gather Info
Step 3: Identify Alternatives
Step 4: Select Best Option
Unit 2: Revenues
The amount of assets created through the sale of goods and services.
Unit 2: Management accounting
The area of accounting concerned with providing internal financial reports to assist
management in making decisions.
Unit 2: Financial statements
Reports such as the balance sheet, income statement, and statement of cash flows, which
summarize the financial status and results of operations of a business entity.
Unit 2: Annual report
A document that summarizes the results of operations and financial status of a company for
the past year and outlines future plans.
Unit 2: Balance Sheet
Lists as of a point in time.
Provides Assets (resources)
Provide Liabilities (obligations)
Unit 2: Financial accounting
The area of accounting concerned with reporting financial information to interested external
parties.
