Comprehensive Test Bank for Survey of Accounting

Comprehensive Test Bank for Survey of
Accounting,

**1) Which of the following groups has the primary responsibility for
establishing generally accepted accounting principles for business
entities in the United States?**
A) Securities and Exchange Commission
B) U.S. Congress
C) International Accounting Standards Board
**D) Financial Accounting Standards Board (Correct)**


**2) The Heritage Company is a manufacturer of office furniture.
Which term best describes Heritage's role in society?**
**A) Business (Correct)**
B) Regulatory agency
C) Consumer
D) Resource owner


**3) Which resource providers lend financial resources to a business
with the expectation of repayment with interest?**
A) Consumers
**B) Creditors (Correct)**
C) Investors
D) Owners

, **4) Which type of accounting information is intended to satisfy the
needs of external users of accounting information?**
A) Cost accounting
B) Managerial accounting
C) Tax accounting
**D) Financial accounting (Correct)**


**5) Which of the following is false regarding managerial accounting
information?**
**A) It is often used by investors. (Correct)**
B) It is more detailed than financial accounting information.
C) It can include nonfinancial information.
D) It focuses on divisional rather than overall profitability.


**6) Financial accounting standards are known collectively as GAAP.
What does that acronym stand for?**
**A) Generally Accepted Accounting Principles (Correct)**
B) Generally Applied Accounting Procedures
C) Governmentally Approved Accounting Practices
D) Generally Authorized Auditing Principles


**7) International accounting standards are formulated by the IASB.
What does that acronym stand for?**
A) Internationally Accepted Standards Board