OpenStax Workplace Software and Skills Test Bank
Chapter 12: Using Excel in Accounting and Financial Reporting
OpenStax Workplace Software
and Skills Test Bank
Chapter 12: Using Excel in Accounti ng and Financial Reporti ng
Review Questions
Multiple Choice
1. What is the process of organizing, analyzing, and communicating financial information that
is used for decision-making called?
A. analysis
B. accounting*
C. information processing
D. financial education
LO: 12.1.1
Difficulty: Easy
2. Which type of accounting is used for financial and nonfinancial information as a basis for
making decisions within an organization?
A. financial accounting
B. managerial accounting*
C. informational accounting
D. database accounting
LO: 12.1.2
Difficulty: Easy
3. Which type of accounting prepares and distributes financial reports to stakeholders outside
of the company?
A. financial accounting*
B. managerial accounting
C. informational accounting
D. database accounting
LO: 12.1.2
Difficulty: Easy
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, OpenStax Workplace Software and Skills Test Bank
Chapter 12: Using Excel in Accounting and Financial Reporting
4. Which institution will assess the historical performance of a company to make an informed
decision about the company’s ability to repay a loan?
A. primary
B. financial
C. corporation
D. bank*
LO: 12.1.3
Difficulty: Easy
5. The net worth of the company, ________, is the debt, which is the, ________, subtracted
from the ________, which is what the company owns.
A. liabilities; equity; assets
B. equity; liabilities; assets*
C. assets; equity; liabilities
D. assets; liability; equity
LO: 12.1.3
Difficulty: Moderate
6. The value entered for the Type variable in the calculation of PMT determines when the
payment is paid. Payment at the beginning of the term is ________. Payment at the end of
the term is________.
A. 1; 0*
B. 1; 2
C. 0; 1
D. 2; 1
LO: 12.2.2
Difficulty: Moderate
7. The user wants to calculate the payment installments. What function formula should be
used given the values NPER(D1), RATE (D2), and PV(D3)?
A. =PMT(D1, D2, D3)
B. =PMT(D2, D1, D3)*
C. =PMT(D3, D1, D2)
D. =PMT(D1, D3, D2)
LO: 12.2.2
Difficulty: Difficult
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
2
5/26/26
Chapter 12: Using Excel in Accounting and Financial Reporting
OpenStax Workplace Software
and Skills Test Bank
Chapter 12: Using Excel in Accounti ng and Financial Reporti ng
Review Questions
Multiple Choice
1. What is the process of organizing, analyzing, and communicating financial information that
is used for decision-making called?
A. analysis
B. accounting*
C. information processing
D. financial education
LO: 12.1.1
Difficulty: Easy
2. Which type of accounting is used for financial and nonfinancial information as a basis for
making decisions within an organization?
A. financial accounting
B. managerial accounting*
C. informational accounting
D. database accounting
LO: 12.1.2
Difficulty: Easy
3. Which type of accounting prepares and distributes financial reports to stakeholders outside
of the company?
A. financial accounting*
B. managerial accounting
C. informational accounting
D. database accounting
LO: 12.1.2
Difficulty: Easy
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
1
5/26/26
, OpenStax Workplace Software and Skills Test Bank
Chapter 12: Using Excel in Accounting and Financial Reporting
4. Which institution will assess the historical performance of a company to make an informed
decision about the company’s ability to repay a loan?
A. primary
B. financial
C. corporation
D. bank*
LO: 12.1.3
Difficulty: Easy
5. The net worth of the company, ________, is the debt, which is the, ________, subtracted
from the ________, which is what the company owns.
A. liabilities; equity; assets
B. equity; liabilities; assets*
C. assets; equity; liabilities
D. assets; liability; equity
LO: 12.1.3
Difficulty: Moderate
6. The value entered for the Type variable in the calculation of PMT determines when the
payment is paid. Payment at the beginning of the term is ________. Payment at the end of
the term is________.
A. 1; 0*
B. 1; 2
C. 0; 1
D. 2; 1
LO: 12.2.2
Difficulty: Moderate
7. The user wants to calculate the payment installments. What function formula should be
used given the values NPER(D1), RATE (D2), and PV(D3)?
A. =PMT(D1, D2, D3)
B. =PMT(D2, D1, D3)*
C. =PMT(D3, D1, D2)
D. =PMT(D1, D3, D2)
LO: 12.2.2
Difficulty: Difficult
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
2
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