REVISED INTERMEDIATE ACCOUNTING QUESTIONS AND ANSWERS

REVISED INTERMEDIATE ACCOUNTING QUESTIONS AND ANSWERS General-purpose financial statements are the product of: A. financial accounting B. managerial accounting c. both financial and managerial accounting d. neither financial nor managerial accounting - CORRECT ANSWER -A. financial accounting Which of the following is not a user of financial reports? A. Unions B. Employees C. Government agencies D. Creditors - CORRECT ANSWER -B. Employees The financial statements most frequently provided include all of the following except the: A. income statement B. statement of retained earnings C. statement of cash flows D. balance sheet - CORRECT ANSWER -B. statement of retained earnings The information provided by financial reporting pertains to: A. an economy as a whole and to members of society as consumers, rather than to individual enterprises or industries. B. individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers. C. business industries, rather than to individual enterprises or an economy as a whole or to members of society as consumers. D. individual business enterprises, industries, and an economy as a whole, rather than to members of society as consumers. - CORRECT ANSWER -B. individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers. All the following are ways in which accounting information is used by financial accounting users except to: A. buy, sell, hold equity and debt instruments B. plan and control company's operations C. evaluate borrowing capacity to determine the extent of a loan to grant D. decide whether to invest in the company - CORRECT ANSWER -B. plan and control company's operations Which of the following represents a form of communication through financial reporting but not through financial statements? A. President's letter B. Balance sheet C. Notes to financial statements D. Income statement - CORRECT ANSWER -A. President's letter The process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organization's operations is called: A. financial accounting B. auditing