,ACCESS Test Bank for Accounting What the Numbers Mean 13th Edition
Marshall
Accounting What the Numbers Mean 13th Marshall
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC.
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Which of the following entities would not require accounting information pertaining to their
economic activities?
A) Social clubs
B) Not-for-profit entities
C) State governments
D) Small businesses
E) All of these entities require accounting information.
2) The authoritative financial accounting standards-setting body in the United States is presently
the:
A) Public Company Accounting Oversights Board (PCAOB)
B) Financial Accounting Standards Board (FASB)
C) Accounting Principles Board (APB)
D) Securities and Exchange Commission (SEC)
E) International Accounting Standards Board (IASB)
3) Which of the following statements about the Financial Accounting Standards Board is
correct?
A) The FASB follows a due process procedure that permits input from interested parties
before an Accounting Standards Update (ASU) is issued.
B) The FASB is controlled by the American Institute of CPAs.
C) The FASB is an agency of the Federal government.
D) The FASB has the authority to fine a noncompliant firm.
4) Major classifications of accounting activity would not include:
A) financial accounting, internal auditing, public accounting.
B) internal auditing, governmental accounting, managerial accounting.
C) financial accounting, national accounting, cost accounting.
D) auditing, income tax accounting, governmental accounting.
Version 1 1
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,ACCESS Test Bank for Accounting What the Numbers Mean 13th Edition
Marshall
Accounting What the Numbers Mean 13th Marshall
5) Which of the following is not an example of a decision or informed judgment that a potential
investor would make from accounting information?
A) A forecast of dividends
B) Assessment of risk that a company may have more debt than it can repay if the
economy enters a recession
C) Future profitability based on past profitability
D) Probability of success of a new product development
6) Which of the following is not an example of a decision or informed judgment that a potential
employee could make from accounting information?
A) The extent of the company's commitment to a research program
B) Personnel turnover statistics (i.e., hiring and terminations)
C) Probability of the company's ability to make profit sharing plan contributions in the
future
D) Assessment of the risk that the company may become bankrupt in the near future
7) Which of the following are qualified to express an auditor's opinion about an entity's
financial statements?
A) A Comptroller
B) A Certified Management Accountant
C) A Certified Internal Auditor
D) A Certified Public Accountant
8) Which classification of accounting is most concerned with the use of economic and financial
information to plan and control many of the activities of the entity?
A) Financial accounting
B) Auditing / Public accounting
C) Managerial accounting
D) Income tax accounting
9) An unqualified auditors' opinion about an entity's financial statements:
A) is a clean bill of health.
B) means that all of the entity's transactions during the audited period were checked out.
C) guarantees that the entity was not involved in or the victim of any fraudulent activities
during the audited period.
D) states that they are presented in conformity with accounting principles generally
accepted in the United States.
Version 1 2
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, ACCESS Test Bank for Accounting What the Numbers Mean 13th Edition
Marshall
Accounting What the Numbers Mean 13th Marshall
10) Cost accounting is a subset of which of the following?
A) Cost analysis
B) Managerial accounting
C) Internal auditing
D) Public auditing
11) The officer of a corporation responsible for the firm's published financial statements would
be most concerned about pronouncements of the:
A) FASB.
B) AICPA.
C) GASB.
D) SEC.
E) IRS.
12) Which of the following is not a characteristic or limitation of the kind of information that
financial reporting by business enterprises can provide?
A) The information results in approximate, rather than exact, measures.
B) The information largely reflects the financial effects of transactions that have already
taken place.
C) The information is provided and used at a cost.
D) All of the answers are characteristics or limitations of the kind of information that
financial reporting by business enterprises can provide.
13) The ethical concept of independence means that an accountant employed:
A) by a corporation cannot prepare financial statements for use by the company's bank.
B) by one company cannot work part-time for another company.
C) by an auditing firm cannot own any stock in the company being audited.
D) by one company cannot accept a job with another company in the same industry.
14) The objectives of financial reporting for nonbusiness enterprises:
A) have more of an internal utilization rather than external reporting focus.
B) do not give consideration to the cost of providing information.
C) are exactly the same as those for business enterprises.
D) focus on providing information for resource providers, rather than investors.
Version 1 3
mynursytest.store
Marshall
Accounting What the Numbers Mean 13th Marshall
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC.
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
1) Which of the following entities would not require accounting information pertaining to their
economic activities?
A) Social clubs
B) Not-for-profit entities
C) State governments
D) Small businesses
E) All of these entities require accounting information.
2) The authoritative financial accounting standards-setting body in the United States is presently
the:
A) Public Company Accounting Oversights Board (PCAOB)
B) Financial Accounting Standards Board (FASB)
C) Accounting Principles Board (APB)
D) Securities and Exchange Commission (SEC)
E) International Accounting Standards Board (IASB)
3) Which of the following statements about the Financial Accounting Standards Board is
correct?
A) The FASB follows a due process procedure that permits input from interested parties
before an Accounting Standards Update (ASU) is issued.
B) The FASB is controlled by the American Institute of CPAs.
C) The FASB is an agency of the Federal government.
D) The FASB has the authority to fine a noncompliant firm.
4) Major classifications of accounting activity would not include:
A) financial accounting, internal auditing, public accounting.
B) internal auditing, governmental accounting, managerial accounting.
C) financial accounting, national accounting, cost accounting.
D) auditing, income tax accounting, governmental accounting.
Version 1 1
mynursytest.store
,ACCESS Test Bank for Accounting What the Numbers Mean 13th Edition
Marshall
Accounting What the Numbers Mean 13th Marshall
5) Which of the following is not an example of a decision or informed judgment that a potential
investor would make from accounting information?
A) A forecast of dividends
B) Assessment of risk that a company may have more debt than it can repay if the
economy enters a recession
C) Future profitability based on past profitability
D) Probability of success of a new product development
6) Which of the following is not an example of a decision or informed judgment that a potential
employee could make from accounting information?
A) The extent of the company's commitment to a research program
B) Personnel turnover statistics (i.e., hiring and terminations)
C) Probability of the company's ability to make profit sharing plan contributions in the
future
D) Assessment of the risk that the company may become bankrupt in the near future
7) Which of the following are qualified to express an auditor's opinion about an entity's
financial statements?
A) A Comptroller
B) A Certified Management Accountant
C) A Certified Internal Auditor
D) A Certified Public Accountant
8) Which classification of accounting is most concerned with the use of economic and financial
information to plan and control many of the activities of the entity?
A) Financial accounting
B) Auditing / Public accounting
C) Managerial accounting
D) Income tax accounting
9) An unqualified auditors' opinion about an entity's financial statements:
A) is a clean bill of health.
B) means that all of the entity's transactions during the audited period were checked out.
C) guarantees that the entity was not involved in or the victim of any fraudulent activities
during the audited period.
D) states that they are presented in conformity with accounting principles generally
accepted in the United States.
Version 1 2
mynursytest.store
, ACCESS Test Bank for Accounting What the Numbers Mean 13th Edition
Marshall
Accounting What the Numbers Mean 13th Marshall
10) Cost accounting is a subset of which of the following?
A) Cost analysis
B) Managerial accounting
C) Internal auditing
D) Public auditing
11) The officer of a corporation responsible for the firm's published financial statements would
be most concerned about pronouncements of the:
A) FASB.
B) AICPA.
C) GASB.
D) SEC.
E) IRS.
12) Which of the following is not a characteristic or limitation of the kind of information that
financial reporting by business enterprises can provide?
A) The information results in approximate, rather than exact, measures.
B) The information largely reflects the financial effects of transactions that have already
taken place.
C) The information is provided and used at a cost.
D) All of the answers are characteristics or limitations of the kind of information that
financial reporting by business enterprises can provide.
13) The ethical concept of independence means that an accountant employed:
A) by a corporation cannot prepare financial statements for use by the company's bank.
B) by one company cannot work part-time for another company.
C) by an auditing firm cannot own any stock in the company being audited.
D) by one company cannot accept a job with another company in the same industry.
14) The objectives of financial reporting for nonbusiness enterprises:
A) have more of an internal utilization rather than external reporting focus.
B) do not give consideration to the cost of providing information.
C) are exactly the same as those for business enterprises.
D) focus on providing information for resource providers, rather than investors.
Version 1 3
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