Introduction to Business Accounting
UPDATED ACTUAL Questions and
CORRECT Answers
Business - CORRECT ANSWER - A _____ is an organization in which basic resources
(inputs), such as materials and labor, are assembled and processed to provide goods or services
(outputs) to customers.
Profit - CORRECT ANSWER - The objective of most businesses is to earn a_____.
Accounting - CORRECT ANSWER - _____ can be defined as an information system that
provides reports to users about the economic activities and condition of a business.
Identify users. assess users' information needs, design the accounting information system to meet
users' needs, record economic data about business activities and events, and prepare accounting
reports for users - CORRECT ANSWER - The process by which accounting provides
information to users is as follows:
Managerial/Management accounting - CORRECT ANSWER - The area of accounting that
provides internal users with information is called _____.
Private accounting - CORRECT ANSWER - Managerial accountants employed by a
business are employed in _____.
Financial accounting - CORRECT ANSWER - The area of accounting that provides
external users with information is called _____.
Provide relevant and timely information for the decision‐ making needs of users outside of the
business - CORRECT ANSWER - The objective of financial accounting is:
, General‐purpose financial statements - CORRECT ANSWER - _____ are one type of
financial accounting report that is distributed to external users.
Ethics - CORRECT ANSWER - _____ are moral principles that guide the conduct of
individuals.
Public accounting - CORRECT ANSWER - Accountants and their staffs who provide
services on a fee basis are said to be employed in _____.
Private accounting - CORRECT ANSWER - Accountants employed by a business firm or
a not‐ for‐profit organization are said to be employed in_____.
Certified Public Accountants (CPAs) - CORRECT ANSWER - Public accountants who
have met a state's education, experience, and examination requirements may become _____.
Generally accepted accounting principles (GAAP) - CORRECT ANSWER - Financial
accountants follow _____ in preparing reports.
Financial Accounting Standards Board (FASB) - CORRECT ANSWER - Within the U.S.,
the _____ has the primary responsibility for developing accounting principles.
Securities and Exchange Commission (SEC) - CORRECT ANSWER - The _____, an
agency of the U.S. government, has authority over the accounting and financial disclosures for
companies whose shares of ownership (stock) are traded and sold to the public.
International Accounting Standards Board (IASB) - CORRECT ANSWER - Many
countries outside the United States use generally accepted accounting principles adopted by the
_____.
Business entity concept - CORRECT ANSWER - Under the_____, the activities of a
business are recorded separately from the activities of its owners, creditors, or other businesses.
UPDATED ACTUAL Questions and
CORRECT Answers
Business - CORRECT ANSWER - A _____ is an organization in which basic resources
(inputs), such as materials and labor, are assembled and processed to provide goods or services
(outputs) to customers.
Profit - CORRECT ANSWER - The objective of most businesses is to earn a_____.
Accounting - CORRECT ANSWER - _____ can be defined as an information system that
provides reports to users about the economic activities and condition of a business.
Identify users. assess users' information needs, design the accounting information system to meet
users' needs, record economic data about business activities and events, and prepare accounting
reports for users - CORRECT ANSWER - The process by which accounting provides
information to users is as follows:
Managerial/Management accounting - CORRECT ANSWER - The area of accounting that
provides internal users with information is called _____.
Private accounting - CORRECT ANSWER - Managerial accountants employed by a
business are employed in _____.
Financial accounting - CORRECT ANSWER - The area of accounting that provides
external users with information is called _____.
Provide relevant and timely information for the decision‐ making needs of users outside of the
business - CORRECT ANSWER - The objective of financial accounting is:
, General‐purpose financial statements - CORRECT ANSWER - _____ are one type of
financial accounting report that is distributed to external users.
Ethics - CORRECT ANSWER - _____ are moral principles that guide the conduct of
individuals.
Public accounting - CORRECT ANSWER - Accountants and their staffs who provide
services on a fee basis are said to be employed in _____.
Private accounting - CORRECT ANSWER - Accountants employed by a business firm or
a not‐ for‐profit organization are said to be employed in_____.
Certified Public Accountants (CPAs) - CORRECT ANSWER - Public accountants who
have met a state's education, experience, and examination requirements may become _____.
Generally accepted accounting principles (GAAP) - CORRECT ANSWER - Financial
accountants follow _____ in preparing reports.
Financial Accounting Standards Board (FASB) - CORRECT ANSWER - Within the U.S.,
the _____ has the primary responsibility for developing accounting principles.
Securities and Exchange Commission (SEC) - CORRECT ANSWER - The _____, an
agency of the U.S. government, has authority over the accounting and financial disclosures for
companies whose shares of ownership (stock) are traded and sold to the public.
International Accounting Standards Board (IASB) - CORRECT ANSWER - Many
countries outside the United States use generally accepted accounting principles adopted by the
_____.
Business entity concept - CORRECT ANSWER - Under the_____, the activities of a
business are recorded separately from the activities of its owners, creditors, or other businesses.
