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The emphasis in financial accounting is on which of the following external user groups? -
ANSWER Investors and creditors
The primary internal group that uses accounting information is? -
ANSWER Management
Internal reports are generally used by? - ANSWER Management
Which of the following is NOT an external user of financial information? -
ANSWER Management
Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? -
ANSWER It is a government agency
Generally accepted accounting principles are? - ANSWER Developed by accounting
rule makers
The initials GAAP stand for? - ANSWER Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the? -
ANSWER 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? - ANSWER Internal Revenue
Service
1
,The organization that develops worldwide accounting standards is the? -
ANSWER International Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are referred to as? -
ANSWER International Financial Accounting Standards
Which of the following is NOT a service typically provided by large public accounting firms? -
ANSWER Making management decisions
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - ANSWER Securities and Exchange
Commission (SEC)
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - ANSWER 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? - ANSWER 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? - ANSWER False
While the technology may be available, companies are still not allowing outsiders access to
their internal accounting records. True or False? - ANSWER True
Increased federal oversight of the audit process resulted from the passage of the following
act of Congress - - ANSWER Sarbanes-Oxley Act
2
, 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? - ANSWER True
Which of the following is NOT one of the three primary financial statements? -
ANSWER 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? -
ANSWER True
Which of the following distinguishes between current and long-term assets? -
ANSWER Classified balance sheet
Which of the following financial statements provides a picture of the enterprise at a
particular point in time? - ANSWER Balance sheet
Which of the following is the reason that the accounting equation is true by definition? -
ANSWER 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? - ANSWER Going concern concept
Revenues cause? - ANSWER An increase in net assets
Which of the following is an overall measure of the performance of a business entity's
activities? - ANSWER Net income (or net loss)
3
The emphasis in financial accounting is on which of the following external user groups? -
ANSWER Investors and creditors
The primary internal group that uses accounting information is? -
ANSWER Management
Internal reports are generally used by? - ANSWER Management
Which of the following is NOT an external user of financial information? -
ANSWER Management
Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? -
ANSWER It is a government agency
Generally accepted accounting principles are? - ANSWER Developed by accounting
rule makers
The initials GAAP stand for? - ANSWER Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the? -
ANSWER 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? - ANSWER Internal Revenue
Service
1
,The organization that develops worldwide accounting standards is the? -
ANSWER International Accounting Standards Board (IASB)
Standards established by the International Accounting Standards Board are referred to as? -
ANSWER International Financial Accounting Standards
Which of the following is NOT a service typically provided by large public accounting firms? -
ANSWER Making management decisions
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - ANSWER Securities and Exchange
Commission (SEC)
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - ANSWER 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? - ANSWER 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? - ANSWER False
While the technology may be available, companies are still not allowing outsiders access to
their internal accounting records. True or False? - ANSWER True
Increased federal oversight of the audit process resulted from the passage of the following
act of Congress - - ANSWER Sarbanes-Oxley Act
2
, 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? - ANSWER True
Which of the following is NOT one of the three primary financial statements? -
ANSWER 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? -
ANSWER True
Which of the following distinguishes between current and long-term assets? -
ANSWER Classified balance sheet
Which of the following financial statements provides a picture of the enterprise at a
particular point in time? - ANSWER Balance sheet
Which of the following is the reason that the accounting equation is true by definition? -
ANSWER 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? - ANSWER Going concern concept
Revenues cause? - ANSWER An increase in net assets
Which of the following is an overall measure of the performance of a business entity's
activities? - ANSWER Net income (or net loss)
3
