ACCOUNTING FOR DECISION MAKING EXAM #1| ACTUAL
QUESTIONS & ANSWERS|| GRADED A+ | 2025
1. Cost accounting is a subset of which of the fol- Managerial accounting
lowing?
2. The officer of a corporation responsible for the FASB
firm's published financial statements would be
most concerned about pronouncements of the:
3. Which of the following are qualified to express A Certified Public Accountant
an auditor's opinion about an entity's financial
statements?
4. Which classification of accounting is most con- Managerial accounting
cerned with the use of economic and financial
information to plan and control many of the ac-
tivities of the entity?
5. Which of the following statements about the Fi- The FASB follows a due process
nancial Accounting Standards Board is correct? procedure that permits input from
interested parties before a stan-
dard is issued.
6. The ethical concept of integrity means that an attempt to be honest and forth-
individual must: right in dealings and communica-
tions with others
7. The authoritative financial accounting stan- Financial Accounting Standards
dards-setting body in the United States is Board (FASB)
presently the:
8. Which of the following is not an example of a Personnel turnover statistics (i.e.,
decision or informed judgment that a potential hiring and terminations)
employee could make from accounting informa-
tion?
1/5
, ACCOUNTING FOR DECISION MAKING EXAM #1| ACTUAL
QUESTIONS & ANSWERS|| GRADED A+ | 2025
9. Accounting can be defined as: the process of identifying, measur-
ing, and communicating economic
information about an organization
for the purpose of making deci-
sions and informed judgments.
10. Major classifications of accounting activity would financial accounting, national ac-
not include: counting, cost accounting
11. Consolidated financial statements report finan- a parent corporation and its sub-
cial position, results of operations, and cash sidiaries.
flows for:
12. Which of the following accounting methods ac- Accrual accounting.
complishes much of the matching of revenues
and expenses?
13. The balance sheet equation can be represented Assets - Liabilities = Stockholders'
by: Equity, Net Assets = Stockholders'
Equity, Assets = Liabilities + Stock-
holders' Equity
14. The Statement of Cash Flows: shows how cash changed during
the period.
15. Stockholders' equity refers to which of the fol- The ownership right of the stock-
lowing? holder(s) of the entity.
16. The going concern concept refers to a presump- the entity will continue to operate in
tion that: the foreseeable future.
17. The balance sheet might also be called: Statement of Financial Position.
18. The principle of consistency means that:
2/5
QUESTIONS & ANSWERS|| GRADED A+ | 2025
1. Cost accounting is a subset of which of the fol- Managerial accounting
lowing?
2. The officer of a corporation responsible for the FASB
firm's published financial statements would be
most concerned about pronouncements of the:
3. Which of the following are qualified to express A Certified Public Accountant
an auditor's opinion about an entity's financial
statements?
4. Which classification of accounting is most con- Managerial accounting
cerned with the use of economic and financial
information to plan and control many of the ac-
tivities of the entity?
5. Which of the following statements about the Fi- The FASB follows a due process
nancial Accounting Standards Board is correct? procedure that permits input from
interested parties before a stan-
dard is issued.
6. The ethical concept of integrity means that an attempt to be honest and forth-
individual must: right in dealings and communica-
tions with others
7. The authoritative financial accounting stan- Financial Accounting Standards
dards-setting body in the United States is Board (FASB)
presently the:
8. Which of the following is not an example of a Personnel turnover statistics (i.e.,
decision or informed judgment that a potential hiring and terminations)
employee could make from accounting informa-
tion?
1/5
, ACCOUNTING FOR DECISION MAKING EXAM #1| ACTUAL
QUESTIONS & ANSWERS|| GRADED A+ | 2025
9. Accounting can be defined as: the process of identifying, measur-
ing, and communicating economic
information about an organization
for the purpose of making deci-
sions and informed judgments.
10. Major classifications of accounting activity would financial accounting, national ac-
not include: counting, cost accounting
11. Consolidated financial statements report finan- a parent corporation and its sub-
cial position, results of operations, and cash sidiaries.
flows for:
12. Which of the following accounting methods ac- Accrual accounting.
complishes much of the matching of revenues
and expenses?
13. The balance sheet equation can be represented Assets - Liabilities = Stockholders'
by: Equity, Net Assets = Stockholders'
Equity, Assets = Liabilities + Stock-
holders' Equity
14. The Statement of Cash Flows: shows how cash changed during
the period.
15. Stockholders' equity refers to which of the fol- The ownership right of the stock-
lowing? holder(s) of the entity.
16. The going concern concept refers to a presump- the entity will continue to operate in
tion that: the foreseeable future.
17. The balance sheet might also be called: Statement of Financial Position.
18. The principle of consistency means that:
2/5
