Accounting for Decision Makers - C213 Pre-
Assessment Test Challenge with Correct Answers
2023.
Which of the following is the most correct definition of accounting? -
Exact 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? - Exact Answer
The information relates to future time periods.
Which is NOT a key component of the definition of accounting? - Exact
Answer Qualitative
What is true about the double-entry system of bookkeeping? - Exact
Answer It was developed in the 1300s−1400s in Italy.
Businesses use accounting systems to - Exact Answer Analyze
transactions; Handle routine bookkeeping tasks; Evaluate performance
and health of the business.
What is not a function of accounting? - Exact Answer Executing sales
transactions for organizations
,Accounting for Decision Makers - C213 Pre-
Assessment Test Challenge with Correct Answers
2023.
What is NOT one of the three primary financial statements? - Exact
Answer Statement of retained earnings
Generally accepted accounting principles are - Exact Answer Developed
by accounting rule makers
The initials GAAP stand for - Exact Answer Generally Accepted
Accounting Principles
The current standard-setting board for accounting in the private sector
is the - Exact Answer Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to
establish accounting standards for publicly held companies? - Exact
Answer Securities and Exchange Commission (SEC)
Which is NOT a service typically provided by large public accounting
firms? - Exact Answer Making management decisions
,Accounting for Decision Makers - C213 Pre-
Assessment Test Challenge with Correct Answers
2023.
The organization that develops worldwide accounting standards is the -
Exact Answer International Accounting Standards Board (IASB)
The initials CPA stand for - Exact Answer Certified Public Accountant
Which of the following financial statements reports a company's
resources, obligations, and owner's equity? - Exact Answer Balance
sheet
Which of the following financial statements reports the excess of a
company's revenues over its expenses? - Exact Answer Income
statement
Which of the following financial statements reports the amount of cash
collected and paid out by a company? - Exact Answer Statement of cash
flows
The emphasis in financial accounting is on which of the following
external user groups? - Exact Answer Investors and creditors
, Accounting for Decision Makers - C213 Pre-
Assessment Test Challenge with Correct Answers
2023.
The primary internal group that uses accounting information is - Exact
Answer Management
Internal reports are generally used by - Exact Answer Management
Which of the following is NOT an external user of financial information?
- Exact Answer Management
Which of the following is NOT true of the Financial Accounting
Standards Board (FASB)? - Exact Answer It is a government agency
Generally accepted accounting principles are - Exact Answer Developed
by accounting rule makers
The initials GAAP stand for - Exact Answer Generally Accepted
Accounting Principles
The current standard-setting board for accounting in the private sector
is the - Exact Answer Financial Accounting Standards Board (FASB)
Assessment Test Challenge with Correct Answers
2023.
Which of the following is the most correct definition of accounting? -
Exact 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? - Exact Answer
The information relates to future time periods.
Which is NOT a key component of the definition of accounting? - Exact
Answer Qualitative
What is true about the double-entry system of bookkeeping? - Exact
Answer It was developed in the 1300s−1400s in Italy.
Businesses use accounting systems to - Exact Answer Analyze
transactions; Handle routine bookkeeping tasks; Evaluate performance
and health of the business.
What is not a function of accounting? - Exact Answer Executing sales
transactions for organizations
,Accounting for Decision Makers - C213 Pre-
Assessment Test Challenge with Correct Answers
2023.
What is NOT one of the three primary financial statements? - Exact
Answer Statement of retained earnings
Generally accepted accounting principles are - Exact Answer Developed
by accounting rule makers
The initials GAAP stand for - Exact Answer Generally Accepted
Accounting Principles
The current standard-setting board for accounting in the private sector
is the - Exact Answer Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to
establish accounting standards for publicly held companies? - Exact
Answer Securities and Exchange Commission (SEC)
Which is NOT a service typically provided by large public accounting
firms? - Exact Answer Making management decisions
,Accounting for Decision Makers - C213 Pre-
Assessment Test Challenge with Correct Answers
2023.
The organization that develops worldwide accounting standards is the -
Exact Answer International Accounting Standards Board (IASB)
The initials CPA stand for - Exact Answer Certified Public Accountant
Which of the following financial statements reports a company's
resources, obligations, and owner's equity? - Exact Answer Balance
sheet
Which of the following financial statements reports the excess of a
company's revenues over its expenses? - Exact Answer Income
statement
Which of the following financial statements reports the amount of cash
collected and paid out by a company? - Exact Answer Statement of cash
flows
The emphasis in financial accounting is on which of the following
external user groups? - Exact Answer Investors and creditors
, Accounting for Decision Makers - C213 Pre-
Assessment Test Challenge with Correct Answers
2023.
The primary internal group that uses accounting information is - Exact
Answer Management
Internal reports are generally used by - Exact Answer Management
Which of the following is NOT an external user of financial information?
- Exact Answer Management
Which of the following is NOT true of the Financial Accounting
Standards Board (FASB)? - Exact Answer It is a government agency
Generally accepted accounting principles are - Exact Answer Developed
by accounting rule makers
The initials GAAP stand for - Exact Answer Generally Accepted
Accounting Principles
The current standard-setting board for accounting in the private sector
is the - Exact Answer Financial Accounting Standards Board (FASB)
