ACCOUNTING 101 QUESTIONS
AND ANSWERS A+ 2024/2025
Objectives of financial reporting to external investors and creditors include preparing
information about all of the following EXCEPT: - ANSWER *A. Information used to
determine which products to produce*
Of the following objectives of financial reporting, which is the MOST specific? -
ANSWER *C. Provide information about economic resources, claims to resources,
and changes in resources and claims*
Overseeing a company's affairs to ensure that the company is managed with the
best interest of shareholders in mind is called: - ANSWER *C. Corporate
governence*
Security and Exchange Commission - ANSWER Government agency that regulates
financial reporting by publicly- held companies.
Suppose a number of your friends have organized a company to develop and sell a
new software product. They have asked you to loan them $8,000 to help get the
company started, and have promised to repay your $8,000 plus 10% interest in one
year. Of the following, which amount may be described as the return on your
investment? - ANSWER *B. $800*
The accounting standards and concepts used in the preparation of financial
statements are called: - ANSWER *B. Generally accepted accounting principles
(GAAP)*
The accounting systems of most business organizations: - ANSWER *A. Are tailored
to meet the organization's needs for accounting information*
The auditor's report on the published financial statements of a large corporation
should be viewed as: - ANSWER *A. The opinion of independent experts as to the
overall fairness of the statements*
The basic purpose of an audit is to: - ANSWER *A. Assure financial statements are
in conformity with GAAP*
The basic purpose of bookkeeping is to: - ANSWER *C. Record the financial
transactions of an economic entity*
The basic purpose of generally accepted accounting principles is to: - ANSWER *B.
Provide a framework for financial reporting that is understood by both the preparers
and the users of financial statements*
, The best definition of an accounting system is: - ANSWER *C. The personnel,
procedures, devices, and records used by an entity to develop accounting
information and communicate this information to decision makers*
The code of ethics of the American Institute of Certified Public Accountants includes
requirements in which of the following areas? - ANSWER *D. All of the Above*
- The Public Interest
- Objectivity
- Independence
The principal function of CPAs is to: - ANSWER *D. Perform audits to determine the
fairness and reliability of a company's financial statements*
A complete set of financial statements for Citywide Company, at December 31,
2009, would include each of the following, EXCEPT: - ANSWER *C. Statement of
projected cash flows for 2009*
A strong internal control structure: - ANSWER *A. Contributes to the accuracy and
reliability of the accounting records.*
All of the following are characteristics of management accounting, EXCEPT: -
ANSWER *C. Information must be developed in conformity with generally accepted
accounting principles or with income tax regulations*
Although accounting information is used by a wide variety of external parties,
financial reporting is primarily directed toward the information needs of: - ANSWER
*A. Investors and creditors*
American Institute of CPAs - ANSWER Organization which develops formal
standards for auditing in the
United States.
An accounting principle must receive substantial authoritative support to qualify as
generally accepted. Among the organizations and agencies that have been
influential in the development of generally accepted accounting principles, which of
the following has provided the MOST influential leadership? - ANSWER *C. Financial
Accounting Standards Board*
Audits of financial statements are performed by: - ANSWER *D. Independent
certified public accountants (CPas).
Financial Accounting Standards Board - ANSWER Private organization most directly
involved in the development and issuance of accounting standards.
Financial statements are designed primarily to" - ANSWER *B. Provide people
outside the business organization with information about the company's financial
position and operating results*
AND ANSWERS A+ 2024/2025
Objectives of financial reporting to external investors and creditors include preparing
information about all of the following EXCEPT: - ANSWER *A. Information used to
determine which products to produce*
Of the following objectives of financial reporting, which is the MOST specific? -
ANSWER *C. Provide information about economic resources, claims to resources,
and changes in resources and claims*
Overseeing a company's affairs to ensure that the company is managed with the
best interest of shareholders in mind is called: - ANSWER *C. Corporate
governence*
Security and Exchange Commission - ANSWER Government agency that regulates
financial reporting by publicly- held companies.
Suppose a number of your friends have organized a company to develop and sell a
new software product. They have asked you to loan them $8,000 to help get the
company started, and have promised to repay your $8,000 plus 10% interest in one
year. Of the following, which amount may be described as the return on your
investment? - ANSWER *B. $800*
The accounting standards and concepts used in the preparation of financial
statements are called: - ANSWER *B. Generally accepted accounting principles
(GAAP)*
The accounting systems of most business organizations: - ANSWER *A. Are tailored
to meet the organization's needs for accounting information*
The auditor's report on the published financial statements of a large corporation
should be viewed as: - ANSWER *A. The opinion of independent experts as to the
overall fairness of the statements*
The basic purpose of an audit is to: - ANSWER *A. Assure financial statements are
in conformity with GAAP*
The basic purpose of bookkeeping is to: - ANSWER *C. Record the financial
transactions of an economic entity*
The basic purpose of generally accepted accounting principles is to: - ANSWER *B.
Provide a framework for financial reporting that is understood by both the preparers
and the users of financial statements*
, The best definition of an accounting system is: - ANSWER *C. The personnel,
procedures, devices, and records used by an entity to develop accounting
information and communicate this information to decision makers*
The code of ethics of the American Institute of Certified Public Accountants includes
requirements in which of the following areas? - ANSWER *D. All of the Above*
- The Public Interest
- Objectivity
- Independence
The principal function of CPAs is to: - ANSWER *D. Perform audits to determine the
fairness and reliability of a company's financial statements*
A complete set of financial statements for Citywide Company, at December 31,
2009, would include each of the following, EXCEPT: - ANSWER *C. Statement of
projected cash flows for 2009*
A strong internal control structure: - ANSWER *A. Contributes to the accuracy and
reliability of the accounting records.*
All of the following are characteristics of management accounting, EXCEPT: -
ANSWER *C. Information must be developed in conformity with generally accepted
accounting principles or with income tax regulations*
Although accounting information is used by a wide variety of external parties,
financial reporting is primarily directed toward the information needs of: - ANSWER
*A. Investors and creditors*
American Institute of CPAs - ANSWER Organization which develops formal
standards for auditing in the
United States.
An accounting principle must receive substantial authoritative support to qualify as
generally accepted. Among the organizations and agencies that have been
influential in the development of generally accepted accounting principles, which of
the following has provided the MOST influential leadership? - ANSWER *C. Financial
Accounting Standards Board*
Audits of financial statements are performed by: - ANSWER *D. Independent
certified public accountants (CPas).
Financial Accounting Standards Board - ANSWER Private organization most directly
involved in the development and issuance of accounting standards.
Financial statements are designed primarily to" - ANSWER *B. Provide people
outside the business organization with information about the company's financial
position and operating results*
