Question 1

The New York Stock Exchange and the NASDAQ both require all listed companies to

Accepted Answer

A) Register with the PCAOB (Public Company Accounting Oversight Board). 
B) Send their financial statements directly to investors,creditors,and other users of financial information. 
C) Maintain an internal audit function. 
D) Use IFRS (International Financial Reporting Standards)for financial statement reporting purposes. 
A) Register with the PCAOB (Public Company Accounting Oversight Board). 
B) Send their financial statements directly to investors,creditors,and other users of financial information. 
C) Maintain an internal audit function. 
D) Use IFRS (International Financial Reporting Standards)for financial statement reporting purposes.

Question 2

The Code of Ethics of the AICPA calls for a commitment to ethical behavior but not at the sacrifice of personal advantage.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following has the least impact upon the integrity of financial statements issued by publicly owned corporations?

Accepted Answer

A) Federal securities laws. 
B) Professional judgment of the accountants who prepare the financial statements. 
C) Audits of the financial statements by the Internal Revenue Service. 
D) Competence and integrity of the CPAs who perform audits. 
A) Federal securities laws. 
B) Professional judgment of the accountants who prepare the financial statements. 
C) Audits of the financial statements by the Internal Revenue Service. 
D) Competence and integrity of the CPAs who perform audits.

Question 4

Managerial accounting information is designed primarily to assist investors and creditors in deciding how to allocate scarce resources.

Accepted Answer

A) True 
 B)False

Question 5

Briefly explain how generally accepted accounting principles enhance the integrity of financial accounting information.

Accepted Answer

Integrity refers to the qualities of com

Question 6

The general purpose financial statements prepared annually by a corporation would not include the:

Accepted Answer

A) Balance sheet. 
B) Income tax return. 
C) Income statement. 
D) Statement of cash flows. 
A) Balance sheet. 
B) Income tax return. 
C) Income statement. 
D) Statement of cash flows.

Question 7

All of the following are characteristics of management accounting,except:

Accepted Answer

A) Reports are used primarily by insiders rather than by persons outside of the business entity. 
B) Its purpose is to assist managers in planning and controlling business operations. 
C) Information must be developed in conformity with generally accepted accounting principles or with income tax regulations. 
D) Information may be tailored to assist in specific managerial decisions. 
A) Reports are used primarily by insiders rather than by persons outside of the business entity. 
B) Its purpose is to assist managers in planning and controlling business operations. 
C) Information must be developed in conformity with generally accepted accounting principles or with income tax regulations. 
D) Information may be tailored to assist in specific managerial decisions.

Question 8

In the phrase "generally accepted accounting principles," the words generally accepted mean that the principles:

Accepted Answer

A) Have been adopted by Congress or approved by the voters in a general election. 
B) Are acceptable to the Internal Revenue Service. 
C) Are understood and observed by all the participants in the financial reporting process. 
D) Have been approved by a majority of the members of the Financial Accounting Standards Board. 
A) Have been adopted by Congress or approved by the voters in a general election. 
B) Are acceptable to the Internal Revenue Service. 
C) Are understood and observed by all the participants in the financial reporting process. 
D) Have been approved by a majority of the members of the Financial Accounting Standards Board.

Question 9

Objectives of financial reporting
List and briefly describe the objectives of financial reporting beginning with the most general and ending with the most specific.

Accepted Answer

(1.)Provide information useful in making

Question 10

A complete set of financial statements for Citywide Company,at December 31,2014,would include each of the following,except:

Accepted Answer

A) Balance sheet as of December 31,2014. 
B) Income statement for the year ended December 31,2014. 
C) Statement of projected cash flows for 2015. 
D) Notes containing additional information that is useful in interpreting the financial statements. 
A) Balance sheet as of December 31,2014. 
B) Income statement for the year ended December 31,2014. 
C) Statement of projected cash flows for 2015. 
D) Notes containing additional information that is useful in interpreting the financial statements.

Question 11

Characteristics of internal accounting information include all of the following except:

Accepted Answer

A) It is audited by a CPA. 
B) It must be timely. 
C) It is oriented toward the future. 
D) It measures efficiency and effectiveness. 
A) It is audited by a CPA. 
B) It must be timely. 
C) It is oriented toward the future. 
D) It measures efficiency and effectiveness.

Question 12

Career opportunities in accounting exist in public accounting,management accounting,governmental accounting and accounting education.

Accepted Answer

A) True 
 B)False

Question 13

The body created by the Sarbanes Oxley Act and charged with oversight of the accounting profession is the:

Accepted Answer

A) Public Company Accounting Oversight Board. 
B) Auditing Standards Board. 
C) International Accounting Standards Board. 
D) Securities and Exchange Commission. 
A) Public Company Accounting Oversight Board. 
B) Auditing Standards Board. 
C) International Accounting Standards Board. 
D) Securities and Exchange Commission.

Question 14

Generally accepted accounting principles:

Accepted Answer

A) Are based on official decrees only. 
B) Are based on tradition only. 
C) Are based on an accountant's experience only. 
D) May change over time. 
A) Are based on official decrees only. 
B) Are based on tradition only. 
C) Are based on an accountant's experience only. 
D) May change over time.

Question 15

The basic purpose of audited financial statements is to:

Accepted Answer

A) Provide the reporting company with assurance that all assets are protected from theft or embezzlement. 
B) Prepare financial statements for companies that do not have their own accounting departments. 
C) Provide users of the financial statements with assurance that the statements are verifiable and are presented in conformity with generally accepted accounting principles. 
D) Provide both the reporting company and the users of the statements with a written guarantee that the statements are error-free. 
A) Provide the reporting company with assurance that all assets are protected from theft or embezzlement. 
B) Prepare financial statements for companies that do not have their own accounting departments. 
C) Provide users of the financial statements with assurance that the statements are verifiable and are presented in conformity with generally accepted accounting principles. 
D) Provide both the reporting company and the users of the statements with a written guarantee that the statements are error-free.

Question 16

Which of the following is not a user of internal accounting information?

Accepted Answer

A) Store manager 
B) Chief executive officer 
C) Creditor 
D) Chief financial officer 
A) Store manager 
B) Chief executive officer 
C) Creditor 
D) Chief financial officer

Question 17

The content of management accounting reports needs to be presented in conformity with generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 18

In comparison with a financial statement prepared in conformity with generally accepted accounting principles,a management accounting report is more likely to:

Accepted Answer

A) Be used by decision makers outside of the business organization. 
B) Focus upon the operation results of the most recently completed accounting period. 
C) View the entire organization as the reporting entity. 
D) Be tailored to the specific needs of an individual decision maker. 
A) Be used by decision makers outside of the business organization. 
B) Focus upon the operation results of the most recently completed accounting period. 
C) View the entire organization as the reporting entity. 
D) Be tailored to the specific needs of an individual decision maker.

Question 19

The tailoring of an accounting report to meet the needs of a specific decision maker is more characteristic of financial accounting reports than of management accounting reports.

Accepted Answer

A) True 
 B)False

Question 20

The financial statements of a business entity:

Accepted Answer

A) Include the balance sheet,income statement,and income tax return. 
B) Provide information about the cash flow prospects of the company. 
C) Are the first step in the accounting process. 
D) Are prepared for a fee by the Financial Accounting Standards Board. 
A) Include the balance sheet,income statement,and income tax return. 
B) Provide information about the cash flow prospects of the company. 
C) Are the first step in the accounting process. 
D) Are prepared for a fee by the Financial Accounting Standards Board.

Exam 1: Accounting: Information for Decision Making

The New York Stock Exchange and the NASDAQ both require all listed companies to

The Code of Ethics of the AICPA calls for a commitment to ethical behavior but not at the sacrifice of personal advantage.

Which of the following has the least impact upon the integrity of financial statements issued by publicly owned corporations?

Managerial accounting information is designed primarily to assist investors and creditors in deciding how to allocate scarce resources.

Briefly explain how generally accepted accounting principles enhance the integrity of financial accounting information.

The general purpose financial statements prepared annually by a corporation would not include the:

All of the following are characteristics of management accounting,except:

In the phrase "generally accepted accounting principles," the words generally accepted mean that the principles:

Objectives of financial reporting List and briefly describe the objectives of financial reporting beginning with the most general and ending with the most specific.

A complete set of financial statements for Citywide Company,at December 31,2014,would include each of the following,except:

Characteristics of internal accounting information include all of the following except:

Career opportunities in accounting exist in public accounting,management accounting,governmental accounting and accounting education.

The body created by the Sarbanes Oxley Act and charged with oversight of the accounting profession is the:

Generally accepted accounting principles:

The basic purpose of audited financial statements is to:

Which of the following is not a user of internal accounting information?

The content of management accounting reports needs to be presented in conformity with generally accepted accounting principles.

In comparison with a financial statement prepared in conformity with generally accepted accounting principles,a management accounting report is more likely to:

The tailoring of an accounting report to meet the needs of a specific decision maker is more characteristic of financial accounting reports than of management accounting reports.

The financial statements of a business entity:

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

Filters