WGU C213 TOPICS 1-6 QUIZZES QUESTIONS
The emphasis in financial accounting is on which of the following external user groups?
- Answers - Investors and creditors
The primary internal group that uses accounting information is? - Answers -
Management
Internal reports are generally used by? - Answers - Management
Which of the following is NOT an external user of financial information? - Answers -
Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? - Answers - It is a government agency
Generally accepted accounting principles are? - Answers - Developed by accounting
rule makers
The initials GAAP stand for? - Answers - Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the? -
Answers - Financial Accounting Standards Board (FASB)
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? - Answers -
Internal Revenue Service
The organization that develops worldwide accounting standards is the? - Answers -
International Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are referred to
as? - Answers - International Financial Accounting Standards
Which of the following is NOT a service typically provided by large public accounting
firms? - Answers - Making management decisions
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - Answers - Securities and Exchange
Commission (SEC)
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - Answers - The theoretical necessity of a common set of accounting
standards
,The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices? True or False? - Answers - True
With the current state of information technology, investors outside a company are now
allowed access to a company's internal database of financial information and do their
own customized analysis of a firm's performance. True or False? - Answers - False
While the technology may be available, companies are still not allowing outsiders
access to their internal accounting records. True or False? - Answers - True
Increased federal oversight of the audit process resulted from the passage of the
following act of Congress - - Answers - Sarbanes-Oxley Act
A borrower benefits from providing financial information regarding income and expenses
in the form of a lower interest rate on the loan because of reduced uncertainty for the
lender with regard to repayment. True or False? - Answers - True
Which of the following is NOT one of the three primary financial statements? - Answers
- The Statement of Retained Earnings
One reason for a company's preparing and providing financial statements is to reduce
uncertainty for an investor regarding the firm's future financial performance. True or
False? - Answers - True
Which of the following distinguishes between current and long-term assets? - Answers
- Classified balance sheet
Which of the following financial statements provides a picture of the enterprise at a
particular point in time? - Answers - Balance sheet
Which of the following is the reason that the accounting equation is true by definition? -
Answers - Liabilities and owner's equity are the sources that fund the purchase of
assets
The idea that businesses must be accounted for as though they will exist at least for the
forseeable future is the? - Answers - Going concern concept
Revenues cause? - Answers - An increase in net assets
Which of the following is an overall measure of the performance of a business entity's
activities? - Answers - Net income (or net loss)
The financial statement that presents a summary of the revenues and expenses of a
business for a specific period of time, such as a month or a year, is called a(n)? -
Answers - Income Statement
, Which of the following would be included on an income statement? - Answers - Rent
expense
Another name for the income statement is? - Answers - Statement of earnings
Which of the following classification does NOT appear on the Statement of Cash Flows?
- Answers - Borrowing
Which of the following classifications refers to those activities whereby cash is obtained
or repaid to owners and creditors? - Answers - Financing
Which of the following activities would NOT be classified as an investing activity? -
Answers - Purchase of inventory
Which of the following activities would be classified as a financing activity? - Answers -
Repayment of a loan
Vital information that CANNOT be captured solely by dollar amounts is reported in a
firm's... - Answers - Notes to financial statements
Which of the following is NOT one of the four general types of financial statement
notes? - Answers - Supplementary information required by the Internal Revenue
Service
Which of the following is an example of a significant accounting policy that would be
explained in the notes to the financial statements? - Answers - The method used to
estimate depreciation on a piece of equipment
Which of the following is an example of a disclosure of information NOT recognized that
would be explained in the notes to the financial statements? - Answers - The
disclosure of the uncertain, potential outcome of a lawsuit
Which of the following is an example of additional information about summary totals that
would be explained in the notes to the financial statements? - Answers - The
description of all the individual items that comprise notes payable
An independent audit report is usually issued by? - Answers - A certified public
accountant
In completing an audit of a company's financial statements, auditors... - Answers -
Provide some assurance that the financial statements are not misleading
The accuracy of the information contained in the financial statements is the
responsibility of the? - Answers - Management
The emphasis in financial accounting is on which of the following external user groups?
- Answers - Investors and creditors
The primary internal group that uses accounting information is? - Answers -
Management
Internal reports are generally used by? - Answers - Management
Which of the following is NOT an external user of financial information? - Answers -
Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? - Answers - It is a government agency
Generally accepted accounting principles are? - Answers - Developed by accounting
rule makers
The initials GAAP stand for? - Answers - Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the? -
Answers - Financial Accounting Standards Board (FASB)
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States? - Answers -
Internal Revenue Service
The organization that develops worldwide accounting standards is the? - Answers -
International Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are referred to
as? - Answers - International Financial Accounting Standards
Which of the following is NOT a service typically provided by large public accounting
firms? - Answers - Making management decisions
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - Answers - Securities and Exchange
Commission (SEC)
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - Answers - The theoretical necessity of a common set of accounting
standards
,The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices? True or False? - Answers - True
With the current state of information technology, investors outside a company are now
allowed access to a company's internal database of financial information and do their
own customized analysis of a firm's performance. True or False? - Answers - False
While the technology may be available, companies are still not allowing outsiders
access to their internal accounting records. True or False? - Answers - True
Increased federal oversight of the audit process resulted from the passage of the
following act of Congress - - Answers - Sarbanes-Oxley Act
A borrower benefits from providing financial information regarding income and expenses
in the form of a lower interest rate on the loan because of reduced uncertainty for the
lender with regard to repayment. True or False? - Answers - True
Which of the following is NOT one of the three primary financial statements? - Answers
- The Statement of Retained Earnings
One reason for a company's preparing and providing financial statements is to reduce
uncertainty for an investor regarding the firm's future financial performance. True or
False? - Answers - True
Which of the following distinguishes between current and long-term assets? - Answers
- Classified balance sheet
Which of the following financial statements provides a picture of the enterprise at a
particular point in time? - Answers - Balance sheet
Which of the following is the reason that the accounting equation is true by definition? -
Answers - Liabilities and owner's equity are the sources that fund the purchase of
assets
The idea that businesses must be accounted for as though they will exist at least for the
forseeable future is the? - Answers - Going concern concept
Revenues cause? - Answers - An increase in net assets
Which of the following is an overall measure of the performance of a business entity's
activities? - Answers - Net income (or net loss)
The financial statement that presents a summary of the revenues and expenses of a
business for a specific period of time, such as a month or a year, is called a(n)? -
Answers - Income Statement
, Which of the following would be included on an income statement? - Answers - Rent
expense
Another name for the income statement is? - Answers - Statement of earnings
Which of the following classification does NOT appear on the Statement of Cash Flows?
- Answers - Borrowing
Which of the following classifications refers to those activities whereby cash is obtained
or repaid to owners and creditors? - Answers - Financing
Which of the following activities would NOT be classified as an investing activity? -
Answers - Purchase of inventory
Which of the following activities would be classified as a financing activity? - Answers -
Repayment of a loan
Vital information that CANNOT be captured solely by dollar amounts is reported in a
firm's... - Answers - Notes to financial statements
Which of the following is NOT one of the four general types of financial statement
notes? - Answers - Supplementary information required by the Internal Revenue
Service
Which of the following is an example of a significant accounting policy that would be
explained in the notes to the financial statements? - Answers - The method used to
estimate depreciation on a piece of equipment
Which of the following is an example of a disclosure of information NOT recognized that
would be explained in the notes to the financial statements? - Answers - The
disclosure of the uncertain, potential outcome of a lawsuit
Which of the following is an example of additional information about summary totals that
would be explained in the notes to the financial statements? - Answers - The
description of all the individual items that comprise notes payable
An independent audit report is usually issued by? - Answers - A certified public
accountant
In completing an audit of a company's financial statements, auditors... - Answers -
Provide some assurance that the financial statements are not misleading
The accuracy of the information contained in the financial statements is the
responsibility of the? - Answers - Management
