Test Bank for Fundamental Accounting Principles, 25th

Test Bank for Fundamental Accounting Principles, 25th 1) Which of the following is not accomplished by accounting? A) Identifies business activities. B) Records business activities. C) Communicates business activities. D) Eliminates the need for interpreting financial data. E) Helps people make better decisions. 2) Which of the following is an external user of accounting information? A) Purchasing manager. B) Human resource manager. C) Lender. D) Chief executive officer (CEO). E) Marketing manager. 3) The primary objective of financial accounting is to: A) Serve the decision-making needs of internal users. B) Provide accounting information that serves external users. C) Monitor consumer needs, tastes, and price concerns. D) Provide information on both the costs and benefits of looking after products and services. E) Know what, when, and how much product to produce. 4) The area of accounting aimed at serving the decision-making needs of internal users is: A) Financial accounting. B) Managerial accounting. C) External auditing. D) SEC reporting. E) Bookkeeping. 5) Which of the following is not an external user of accounting information? A) Shareholders. B) Customers. C) Purchasing managers. D) Government regulators. E) Creditors. 6) Which of the following is not true regarding a Certified Public Accountant? A) Must meet education requirements. B) Must pass an examination. C) Must exhibit ethical character. D) Must meet experience requirements. E) Cannot hold any certificate other than a CPA Answer Key Test name: chapter 1 1) D 2) C 3) B 4) B 5) C 6) E