Test Bank For
Accounting: What the Numbers Mean
Author: David Marshall, Wayne W. McManus
13th Edition
1
,Test Bank Accounting: What The Numbers Mean, 13th Edition By David Marshall
Chapter 01 13e Answers Included
MULTIPLE CHOICE - Choose The One Alternative That Best Completes The Statement
Or Answers The Question.
1) Which Of The Following Entities Wouldnot 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 Wouldnot Include:
2
, 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.
5) Which Of The Following Isnot 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 Isnot 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
Futur
e 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
3
, 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.
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.
4
Accounting: What the Numbers Mean
Author: David Marshall, Wayne W. McManus
13th Edition
1
,Test Bank Accounting: What The Numbers Mean, 13th Edition By David Marshall
Chapter 01 13e Answers Included
MULTIPLE CHOICE - Choose The One Alternative That Best Completes The Statement
Or Answers The Question.
1) Which Of The Following Entities Wouldnot 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 Wouldnot Include:
2
, 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.
5) Which Of The Following Isnot 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 Isnot 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
Futur
e 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
3
, 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.
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.
4
