Accounting for Decision Makers - C213 Pre Assessment

Which of the following is the most correct definition of accounting? - Answer- A system for providing quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions What is NOT typically true of accounting information? - Answer- The information relates to future time periods. Which is NOT a key component of the definition of accounting? - Answer- Qualitative What is true about the double-entry system of bookkeeping? - Answer- It was developed in the 1300s−1400s in Italy. Businesses use accounting systems to - Answer- Analyze transactions; Handle routine bookkeeping tasks; Evaluate performance and health of the business. What is not a function of accounting? - Answer- Executing sales transactions for organizations What is NOT one of the three primary financial statements? - Answer- Statement of retained earnings Generally accepted accounting principles are - Answer- Developed by accounting rule makers The initials GAAP stand for - Answer- Generally Accepted Accounting Principles The current standard-setting board for accounting in the private sector is the - Answer- Financial Accounting Standards Board (FASB) Which of the following organizations has specific legal authority to establish accounting standards for publicly held companies? - Answer- Securities and Exchange Commission (SEC) Which is NOT a service typically provided by large public accounting firms? - Answer- Making management decisions The organization that develops worldwide accounting standards is the - Answer- International Accounting Standards Board (IASB)