TestgBankgAccounting:gWhatgthegNumbersgMean,g13thgEditiongbygDavidgMarshall
Chapterg01g13e AnswersgIncluded
MULTIPLEgCHOICEg-
gChoosegthegonegalternativegthatgbestgcompletesgthegstatementgorganswersgthegquestion.
1) Whichgofgthegfollowinggentitiesgwouldnotgrequiregaccountingginformationgpertaininggt
ogtheirgeconomicgactivities?
A) Socialgclubs
B) Not-for-profitgentities
C) Stateggovernments
D) Smallgbusinesses
E) Allgofgthesegentitiesgrequiregaccountingginformation.
2) Thegauthoritativegfinancialgaccountinggstandards-
settinggbodygingthegUnitedgStatesgisgpresentlygthe:
A) PublicgCompanygAccountinggOversightsgBoardg(PCAOB)
B) FinancialgAccountinggStandardsgBoardg(FASB)
C) AccountinggPrinciplesgBoardg(APB)
D) SecuritiesgandgExchangegCommissiong(SEC)
E) InternationalgAccountinggStandardsgBoardg(IASB)
3) WhichgofgthegfollowinggstatementsgaboutgthegFinancialgAccountinggStandardsgBoardgi
sgcorrect?
A) ThegFASBgfollowsgagduegprocessgproceduregthatgpermitsginputgfromginterestedgpartie
sgbeforegangAccountinggStandardsgUpdateg(ASU)gisgissued.
B) ThegFASBgisgcontrolledgbygthegAmericangInstitutegofgCPAs.
C) ThegFASBgisgangagencygofgthegFederalggovernment.
D) ThegFASBghasgthegauthoritygtogfinegagnoncompliantgfirm.
4) Majorgclassificationsgofgaccountinggactivitygwouldnotginclude:
1
, A) financialgaccounting,ginternalgauditing,gpublicgaccounting.
B) internalgauditing,ggovernmentalgaccounting,gmanagerialgaccounting.
C) financialgaccounting,gnationalgaccounting,gcostgaccounting.
D) auditing,gincomegtaxgaccounting,ggovernmentalgaccounting.
5) Whichgofgthegfollowinggisnotgangexamplegofgagdecisiongorginformedgjudgmentgthatg
agpotentialginvestorgwouldgmakegfromgaccountingginformation?
A) Agforecastgofgdividends
B) Assessmentgofgriskgthatgagcompanygmayghavegmoregdebtgthangitgcangrepaygifgth
egeconomygentersgagrecession
C) Futuregprofitabilitygbasedgongpastgprofitability
D) Probabilitygofgsuccessgofgagnewgproductgdevelopment
6) Whichgofgthegfollowinggisnotgangexamplegofgagdecisiongorginformedgjudgmentgthatg
agpotentialgemployeegcouldgmakegfromgaccountingginformation?
A) Thegextentgofgthegcompany'sgcommitmentgtogagresearchgprogram
B) Personnelgturnovergstatisticsg(i.e.,ghiringgandgterminations)
C) Probabilitygofgthegcompany'sgabilitygtogmakegprofitgsharinggplangcontributionsgingthe
future
D) Assessmentgofgthegriskgthatgthegcompanygmaygbecomegbankruptgingthegneargfuture
7) Whichgofgthegfollowinggaregqualifiedgtogexpressgangauditor'sgopiniongaboutgangentity'
sgfinancialgstatements?
A) AgComptroller
B) AgCertifiedgManagementgAccountant
C) AgCertifiedgInternalgAuditor
D) AgCertifiedgPublicgAccountant
2
,8) Whichgclassificationgofgaccountinggisgmostgconcernedgwithgthegusegofgeconomicgan
dgfinancialginformationgtogplangandgcontrolgmanygofgthegactivitiesgofgthegentity?
A) Financialgaccounting
B) Auditingg/gPublicgaccounting
C) Managerialgaccounting
D) Incomegtaxgaccounting
9) Angunqualifiedgauditors'gopiniongaboutgangentity'sgfinancialgstatements:
A) isgagcleangbillgofghealth.
B) meansgthatgallgofgthegentity'sgtransactionsgduringgthegauditedgperiodgweregcheckedgout.
C) guaranteesgthatgthegentitygwasgnotginvolvedgingorgthegvictimgofganygfraudulentgactiviti
esgduringgthegauditedgperiod.
D) statesgthatgtheygaregpresentedgingconformitygwithgaccountinggprinciplesggenerall
ygacceptedgingthegUnitedgStates.
10) Costgaccountinggisgagsubsetgofgwhichgofgthegfollowing?
A) Costganalysis
B) Managerialgaccounting
C) Internalgauditing
D) Publicgauditing
11) Thegofficergofgagcorporationgresponsiblegforgthegfirm'sgpublishedgfinancialgstatement
sgwouldgbegmostgconcernedgaboutgpronouncementsgofgthe:
A) FASB.
B) AICPA.
C) GASB.
D) SEC.
E) IRS.
3
, 12) Whichgofgthegfollowinggisnotgagcharacteristicgorglimitationgofgthegkindgofginformationgth
atgfinancialgreportinggbygbusinessgenterprisesgcangprovide?
A) Theginformationgresultsgingapproximate,grathergthangexact,gmeasures.
B) Theginformationglargelygreflectsgthegfinancialgeffectsgofgtransactionsgthatghavegalread
ygtakengplace.
C) Theginformationgisgprovidedgandgusedgatgagcost.
D) Allgofgtheganswersgaregcharacteristicsgorglimitationsgofgthegkindgofginformationgth
atgfinancialgreportinggbygbusinessgenterprisesgcangprovide.
13) Thegethicalgconceptgofgindependencegmeansgthatgangaccountantgemployed:
A) bygagcorporationgcannotgpreparegfinancialgstatementsgforgusegbygthegcompany'sgbank.
B) bygonegcompanygcannotgworkgpart-timegforganothergcompany.
C) bygangauditinggfirmgcannotgownganygstockgingthegcompanygbeinggaudited.
D) bygonegcompanygcannotgacceptgagjobgwithganothergcompanygingthegsamegindustry.
14) Thegobjectivesgofgfinancialgreportinggforgnonbusinessgenterprises:
A) havegmoregofganginternalgutilizationgrathergthangexternalgreportinggfocus.
B) dognotggivegconsiderationgtogthegcostgofgprovidingginformation.
C) aregexactlygthegsamegasgthosegforgbusinessgenterprises.
D) focusgongprovidingginformationgforgresourcegproviders,grathergthanginvestors.
15) Thegethicalgconceptgofgintegritygmeansgthatgangindividualgmust:
A) attemptgtogbeghonestgandgforthrightgingdealingsgandgcommunicationsgwithgothers.
B) signgagpledgegtogabidegbygallglawsgandgregulations.
C) reportgtogagsupervisorganygviolationgofgthegcodegofgconductgofghergcompanygthatg
isgobserved.
D) read,gunderstand,gandgagreegtogfollowgallgprovisionsgofghergemployer'sgcodegofgconduct.
4
Chapterg01g13e AnswersgIncluded
MULTIPLEgCHOICEg-
gChoosegthegonegalternativegthatgbestgcompletesgthegstatementgorganswersgthegquestion.
1) Whichgofgthegfollowinggentitiesgwouldnotgrequiregaccountingginformationgpertaininggt
ogtheirgeconomicgactivities?
A) Socialgclubs
B) Not-for-profitgentities
C) Stateggovernments
D) Smallgbusinesses
E) Allgofgthesegentitiesgrequiregaccountingginformation.
2) Thegauthoritativegfinancialgaccountinggstandards-
settinggbodygingthegUnitedgStatesgisgpresentlygthe:
A) PublicgCompanygAccountinggOversightsgBoardg(PCAOB)
B) FinancialgAccountinggStandardsgBoardg(FASB)
C) AccountinggPrinciplesgBoardg(APB)
D) SecuritiesgandgExchangegCommissiong(SEC)
E) InternationalgAccountinggStandardsgBoardg(IASB)
3) WhichgofgthegfollowinggstatementsgaboutgthegFinancialgAccountinggStandardsgBoardgi
sgcorrect?
A) ThegFASBgfollowsgagduegprocessgproceduregthatgpermitsginputgfromginterestedgpartie
sgbeforegangAccountinggStandardsgUpdateg(ASU)gisgissued.
B) ThegFASBgisgcontrolledgbygthegAmericangInstitutegofgCPAs.
C) ThegFASBgisgangagencygofgthegFederalggovernment.
D) ThegFASBghasgthegauthoritygtogfinegagnoncompliantgfirm.
4) Majorgclassificationsgofgaccountinggactivitygwouldnotginclude:
1
, A) financialgaccounting,ginternalgauditing,gpublicgaccounting.
B) internalgauditing,ggovernmentalgaccounting,gmanagerialgaccounting.
C) financialgaccounting,gnationalgaccounting,gcostgaccounting.
D) auditing,gincomegtaxgaccounting,ggovernmentalgaccounting.
5) Whichgofgthegfollowinggisnotgangexamplegofgagdecisiongorginformedgjudgmentgthatg
agpotentialginvestorgwouldgmakegfromgaccountingginformation?
A) Agforecastgofgdividends
B) Assessmentgofgriskgthatgagcompanygmayghavegmoregdebtgthangitgcangrepaygifgth
egeconomygentersgagrecession
C) Futuregprofitabilitygbasedgongpastgprofitability
D) Probabilitygofgsuccessgofgagnewgproductgdevelopment
6) Whichgofgthegfollowinggisnotgangexamplegofgagdecisiongorginformedgjudgmentgthatg
agpotentialgemployeegcouldgmakegfromgaccountingginformation?
A) Thegextentgofgthegcompany'sgcommitmentgtogagresearchgprogram
B) Personnelgturnovergstatisticsg(i.e.,ghiringgandgterminations)
C) Probabilitygofgthegcompany'sgabilitygtogmakegprofitgsharinggplangcontributionsgingthe
future
D) Assessmentgofgthegriskgthatgthegcompanygmaygbecomegbankruptgingthegneargfuture
7) Whichgofgthegfollowinggaregqualifiedgtogexpressgangauditor'sgopiniongaboutgangentity'
sgfinancialgstatements?
A) AgComptroller
B) AgCertifiedgManagementgAccountant
C) AgCertifiedgInternalgAuditor
D) AgCertifiedgPublicgAccountant
2
,8) Whichgclassificationgofgaccountinggisgmostgconcernedgwithgthegusegofgeconomicgan
dgfinancialginformationgtogplangandgcontrolgmanygofgthegactivitiesgofgthegentity?
A) Financialgaccounting
B) Auditingg/gPublicgaccounting
C) Managerialgaccounting
D) Incomegtaxgaccounting
9) Angunqualifiedgauditors'gopiniongaboutgangentity'sgfinancialgstatements:
A) isgagcleangbillgofghealth.
B) meansgthatgallgofgthegentity'sgtransactionsgduringgthegauditedgperiodgweregcheckedgout.
C) guaranteesgthatgthegentitygwasgnotginvolvedgingorgthegvictimgofganygfraudulentgactiviti
esgduringgthegauditedgperiod.
D) statesgthatgtheygaregpresentedgingconformitygwithgaccountinggprinciplesggenerall
ygacceptedgingthegUnitedgStates.
10) Costgaccountinggisgagsubsetgofgwhichgofgthegfollowing?
A) Costganalysis
B) Managerialgaccounting
C) Internalgauditing
D) Publicgauditing
11) Thegofficergofgagcorporationgresponsiblegforgthegfirm'sgpublishedgfinancialgstatement
sgwouldgbegmostgconcernedgaboutgpronouncementsgofgthe:
A) FASB.
B) AICPA.
C) GASB.
D) SEC.
E) IRS.
3
, 12) Whichgofgthegfollowinggisnotgagcharacteristicgorglimitationgofgthegkindgofginformationgth
atgfinancialgreportinggbygbusinessgenterprisesgcangprovide?
A) Theginformationgresultsgingapproximate,grathergthangexact,gmeasures.
B) Theginformationglargelygreflectsgthegfinancialgeffectsgofgtransactionsgthatghavegalread
ygtakengplace.
C) Theginformationgisgprovidedgandgusedgatgagcost.
D) Allgofgtheganswersgaregcharacteristicsgorglimitationsgofgthegkindgofginformationgth
atgfinancialgreportinggbygbusinessgenterprisesgcangprovide.
13) Thegethicalgconceptgofgindependencegmeansgthatgangaccountantgemployed:
A) bygagcorporationgcannotgpreparegfinancialgstatementsgforgusegbygthegcompany'sgbank.
B) bygonegcompanygcannotgworkgpart-timegforganothergcompany.
C) bygangauditinggfirmgcannotgownganygstockgingthegcompanygbeinggaudited.
D) bygonegcompanygcannotgacceptgagjobgwithganothergcompanygingthegsamegindustry.
14) Thegobjectivesgofgfinancialgreportinggforgnonbusinessgenterprises:
A) havegmoregofganginternalgutilizationgrathergthangexternalgreportinggfocus.
B) dognotggivegconsiderationgtogthegcostgofgprovidingginformation.
C) aregexactlygthegsamegasgthosegforgbusinessgenterprises.
D) focusgongprovidingginformationgforgresourcegproviders,grathergthanginvestors.
15) Thegethicalgconceptgofgintegritygmeansgthatgangindividualgmust:
A) attemptgtogbeghonestgandgforthrightgingdealingsgandgcommunicationsgwithgothers.
B) signgagpledgegtogabidegbygallglawsgandgregulations.
C) reportgtogagsupervisorganygviolationgofgthegcodegofgconductgofghergcompanygthatg
isgobserved.
D) read,gunderstand,gandgagreegtogfollowgallgprovisionsgofghergemployer'sgcodegofgconduct.
4
