1|Page
FINANCIAL ACCOUNTING PRE
ASSESSMENT, FINANCIAL ACCOUNTING
IVY SOFTWARE FINAL WITH QUESTIONS
AND ANSWERS 100% VERIFIED
Reliability - correct answer_ the quality that "assures that
information is reasonably free from error and bias and faithfully
represents what it purports to represent.
Comparability - correct answer_ the quality that allows quantitative
assessment of the similarities and differences among enterprises.
Consistency - correct answer_ The quality resulting from unchanging
accounting methods that allow information from the same firm to be
compared overtime.
Materiality - correct answer_ if an item is not large enough to influence
the users of a financial statement, it should not be reported.
,2|Page
Cost Effectiveness - correct answer_ that the benefits of providing a
certain level of
accounting information must outweigh the costs.
T/F Accounting Entity is considered to be any organization for which
seperate accounting data is gathered and processed. - correct answer_
True
When the bookkeeper or accountant of a business entity records an
economic event, it is called a - correct answer_ transaction
T/F Managerial accounting must follow strict riles which govern internal
accounting procedures - correct answer_ FALSE. Managers can devise
any accounting formats that they feel are helpful and relevant to their
informational needs.
T/F The 10K is required by FASB - correct answer_ FALSE. The Securities
and Exchange Commision requires all publicly- traded corporations over
a minimum size to file an annual report summarizing this year's
financial results.
,3|Page
Elson Incorporated estimated the useful life of a patent and amortized
it over its useful life. This GAAP is known as - correct answer_ matching
Using an accelerated depreciation method for tax purposes would be
an example of - correct answer_ Tax accounting
Presenting an asset in the balance sheet at its historical cost less
accumulated depreciation is an example of - correct answer_ financial
accounting
Financial accounting involves reporting financial information to -
correct answer_ external users
In periods of rising prices, which of the following generally accepted
accounting principles is violated ? - correct answer_ Monetary Concept
, 4|Page
Stapling Incorporated projects sales revenues will exceed $100 million
next year. This is an example of - correct answer_ managerial
accounting
Preparing a production plan would be an example of - correct answer_
managerial accounting
T/F A non-profit organization such as a school does not prepare reports
for external users. - correct answer_ False
test - correct answer_ testen
tests - correct answer_ test
Why is the accounting cycle important? - correct answer_ It results in
the creation of the financial accounting statement
FINANCIAL ACCOUNTING PRE
ASSESSMENT, FINANCIAL ACCOUNTING
IVY SOFTWARE FINAL WITH QUESTIONS
AND ANSWERS 100% VERIFIED
Reliability - correct answer_ the quality that "assures that
information is reasonably free from error and bias and faithfully
represents what it purports to represent.
Comparability - correct answer_ the quality that allows quantitative
assessment of the similarities and differences among enterprises.
Consistency - correct answer_ The quality resulting from unchanging
accounting methods that allow information from the same firm to be
compared overtime.
Materiality - correct answer_ if an item is not large enough to influence
the users of a financial statement, it should not be reported.
,2|Page
Cost Effectiveness - correct answer_ that the benefits of providing a
certain level of
accounting information must outweigh the costs.
T/F Accounting Entity is considered to be any organization for which
seperate accounting data is gathered and processed. - correct answer_
True
When the bookkeeper or accountant of a business entity records an
economic event, it is called a - correct answer_ transaction
T/F Managerial accounting must follow strict riles which govern internal
accounting procedures - correct answer_ FALSE. Managers can devise
any accounting formats that they feel are helpful and relevant to their
informational needs.
T/F The 10K is required by FASB - correct answer_ FALSE. The Securities
and Exchange Commision requires all publicly- traded corporations over
a minimum size to file an annual report summarizing this year's
financial results.
,3|Page
Elson Incorporated estimated the useful life of a patent and amortized
it over its useful life. This GAAP is known as - correct answer_ matching
Using an accelerated depreciation method for tax purposes would be
an example of - correct answer_ Tax accounting
Presenting an asset in the balance sheet at its historical cost less
accumulated depreciation is an example of - correct answer_ financial
accounting
Financial accounting involves reporting financial information to -
correct answer_ external users
In periods of rising prices, which of the following generally accepted
accounting principles is violated ? - correct answer_ Monetary Concept
, 4|Page
Stapling Incorporated projects sales revenues will exceed $100 million
next year. This is an example of - correct answer_ managerial
accounting
Preparing a production plan would be an example of - correct answer_
managerial accounting
T/F A non-profit organization such as a school does not prepare reports
for external users. - correct answer_ False
test - correct answer_ testen
tests - correct answer_ test
Why is the accounting cycle important? - correct answer_ It results in
the creation of the financial accounting statement
