Accy 201 Ch. 1 || WELL-ENLIGHTENED!!
Primary purpose of accounting correct answers To identify, record, and communicate
business transactions
Technological advancement correct answers Has freed accounting professionals to
concentrate more on the analysis and interpretation of information
Internal users of accounting information include: correct answers Production managers
The primary objective of financial accounting is correct answers To provide financial
statements to help external users analyze and interpret an organization's activities
The area of accounting aimed at serving the decision-making needs of internal users is:
correct answers Managerial accounting
Why are ethics crucial to accounting? correct answers For accounting information to be
useful, it must be trusted and therefore the result of ethical decision.
What is the opportunity component of the fraud triangle? correct answers A person thinks
that there is a way to commit fraud without much chance of getting caught.
Which accounting assumption assumes that all accounting can be reported monthly or yearly?
correct answers Time Period Assumption
Which accounting principle dictates when expenses are recognized? correct answers
Matching principle
Which of the following the is the correct sequence for the heading for ABC Company's 2013
balance sheet? correct answers ABC Company, Balance Sheet, 12/31/13
What elements are found on the income sheet? correct answers Salaries Expense
What is an asset? correct answers Something the company owns
Ethical behavior requires: correct answers That an auditor's pay not depend on the figures in
the client's reports
What is social responsibility? correct answers A concern for the impact of one's actions on
society as a whole
What elements are found on a balance sheet? correct answers Retained earnings
What is the objectivity principle? correct answers The accounting guideline prescribing that
financial statement information be supported by independent, unbiased evidence other than
someone's belief or opinion
Businesses cannot take this form correct answers Common stock
What is a corporation? correct answers A legal entity separate and distinct from its owners
Primary purpose of accounting correct answers To identify, record, and communicate
business transactions
Technological advancement correct answers Has freed accounting professionals to
concentrate more on the analysis and interpretation of information
Internal users of accounting information include: correct answers Production managers
The primary objective of financial accounting is correct answers To provide financial
statements to help external users analyze and interpret an organization's activities
The area of accounting aimed at serving the decision-making needs of internal users is:
correct answers Managerial accounting
Why are ethics crucial to accounting? correct answers For accounting information to be
useful, it must be trusted and therefore the result of ethical decision.
What is the opportunity component of the fraud triangle? correct answers A person thinks
that there is a way to commit fraud without much chance of getting caught.
Which accounting assumption assumes that all accounting can be reported monthly or yearly?
correct answers Time Period Assumption
Which accounting principle dictates when expenses are recognized? correct answers
Matching principle
Which of the following the is the correct sequence for the heading for ABC Company's 2013
balance sheet? correct answers ABC Company, Balance Sheet, 12/31/13
What elements are found on the income sheet? correct answers Salaries Expense
What is an asset? correct answers Something the company owns
Ethical behavior requires: correct answers That an auditor's pay not depend on the figures in
the client's reports
What is social responsibility? correct answers A concern for the impact of one's actions on
society as a whole
What elements are found on a balance sheet? correct answers Retained earnings
What is the objectivity principle? correct answers The accounting guideline prescribing that
financial statement information be supported by independent, unbiased evidence other than
someone's belief or opinion
Businesses cannot take this form correct answers Common stock
What is a corporation? correct answers A legal entity separate and distinct from its owners
