Question 1

Generally accepted accounting principles are the "ground rules" used in the preparation of:

Accepted Answer

A) Income tax returns. 
B) All accounting reports. 
C) Reports to federal and state regulatory agencies. 
D) Financial statements. 
A) Income tax returns. 
B) All accounting reports. 
C) Reports to federal and state regulatory agencies. 
D) Financial statements.

Question 2

The Accounting Standards Codification was developed by:

Accepted Answer

A) The Financial Accounting Standards Board. 
B) Certified public accountants. 
C) The Securities and Exchange Commission. 
D) The Internal Revenue Service. 
A) The Financial Accounting Standards Board. 
B) Certified public accountants. 
C) The Securities and Exchange Commission. 
D) The Internal Revenue Service.

Question 3

Which of the following is not recognized as a source of generally accepted accounting principles?

Accepted Answer

A) Widespread and long-term use of a particular practice. 
B) The Financial Accounting Standards Board (FAS
B) . 
C) The Securities and Exchange Commission (SE
C) . 
D) Statements of the Committee of Sponsoring Organizations (COSO). 
A) Widespread and long-term use of a particular practice. 
B) The Financial Accounting Standards Board (FAS
B) . 
C) The Securities and Exchange Commission (SE
C) . 
D) Statements of the Committee of Sponsoring Organizations (COSO).

Question 4

The field of accounting may best be described as:

Accepted Answer

A) Recording the financial transactions of an economic entity. 
B) Developing information in conformity with generally accepted accounting principles. 
C) The art of interpreting,measuring,and describing economic activity. 
D) Developing the information required for the preparation of income tax returns. 
A) Recording the financial transactions of an economic entity. 
B) Developing information in conformity with generally accepted accounting principles. 
C) The art of interpreting,measuring,and describing economic activity. 
D) Developing the information required for the preparation of income tax returns.

Question 5

The Securities and Exchange Commission is instrumental in the development of financial accounting standards.

Accepted Answer

A) True 
 B)False

Question 6

Financial statements are designed primarily to:

Accepted Answer

A) Provide managers with detailed information tailored to the managers' specific information needs. 
B) Provide people outside the business organization with information about the company's financial position and operating results. 
C) Report to the Internal Revenue Service the company's taxable income. 
D) Indicate to investors in a particular company the current market values of their investments. 
A) Provide managers with detailed information tailored to the managers' specific information needs. 
B) Provide people outside the business organization with information about the company's financial position and operating results. 
C) Report to the Internal Revenue Service the company's taxable income. 
D) Indicate to investors in a particular company the current market values of their investments.

Question 7

Management accountants primarily are concerned with developing information:

Accepted Answer

A) For use in income tax returns. 
B) Suited to the needs of stockholders,creditors,and other external decision makers. 
C) In conformity with generally accepted accounting principles. 
D) Suited to the needs of decision makers within the organization. 
A) For use in income tax returns. 
B) Suited to the needs of stockholders,creditors,and other external decision makers. 
C) In conformity with generally accepted accounting principles. 
D) Suited to the needs of decision makers within the organization.

Question 8

The set of standards,assumptions,and concepts that form the "ground rules" for financial reporting in the United States is termed:

Accepted Answer

A) The conceptual framework. 
B) Generally accepted accounting principles. 
C) Statements of Financial Accounting Concepts. 
D) American standards for certified public accountants. 
A) The conceptual framework. 
B) Generally accepted accounting principles. 
C) Statements of Financial Accounting Concepts. 
D) American standards for certified public accountants.

Question 9

Financial accounting standards issued by the FASB are considered generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 10

Financial statements may be prepared for which time period?

Accepted Answer

A) One year. 
B) Less than one year. 
C) More than one year. 
D) Any time period. 
A) One year. 
B) Less than one year. 
C) More than one year. 
D) Any time period.

Question 11

The measures used by an organization to provide reasonable assurance that the organization produces reliable financial reports,complies with applicable laws and regulations,and conducts its operations in an efficient and effective manner are collectively

Accepted Answer

A) Generally accepted accounting principles. 
B) Financial accounting standards. 
C) Securities and exchange regulations. 
D) The internal control structure. 
A) Generally accepted accounting principles. 
B) Financial accounting standards. 
C) Securities and exchange regulations. 
D) The internal control structure.

Question 12

Financial and management accounting information
Explain one way in which the characteristics of financial and management accounting information differ.

Accepted Answer

Financial accounting information is prim

Question 13

The American Institute of Certified Public Accountants has the legal authority over publicly held corporations to enforce compliance with generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 14

The American Institute of Certified Public Accountants has a code of professional conduct that expresses the accounting profession's recognition of its responsibilities to all of the following except:

Accepted Answer

A) The public. 
B) The client. 
C) Colleagues. 
D) The IRS. 
A) The public. 
B) The client. 
C) Colleagues. 
D) The IRS.

Question 15

A strong internal control structure:

Accepted Answer

A) Contributes to the accuracy and verifiability of the accounting records. 
B) Will prevent a business from operating at a loss. 
C) Assures that a business will remain solvent. 
D) Will prevent fraud,theft,and embezzlement. 
A) Contributes to the accuracy and verifiability of the accounting records. 
B) Will prevent a business from operating at a loss. 
C) Assures that a business will remain solvent. 
D) Will prevent fraud,theft,and embezzlement.

Question 16

It is the function of management accounting to perform the following activities,except:

Accepted Answer

A) Financial forecasts. 
B) Cost accounting. 
C) Internal audits. 
D) Audited financial statements. 
A) Financial forecasts. 
B) Cost accounting. 
C) Internal audits. 
D) Audited financial statements.

Exam 1: Accounting: Information for Decision Making

Generally accepted accounting principles are the "ground rules" used in the preparation of:

The Accounting Standards Codification was developed by:

Which of the following is not recognized as a source of generally accepted accounting principles?

The field of accounting may best be described as:

The Securities and Exchange Commission is instrumental in the development of financial accounting standards.

Financial statements are designed primarily to:

Management accountants primarily are concerned with developing information:

The set of standards,assumptions,and concepts that form the "ground rules" for financial reporting in the United States is termed:

Financial accounting standards issued by the FASB are considered generally accepted accounting principles.

Financial statements may be prepared for which time period?

The measures used by an organization to provide reasonable assurance that the organization produces reliable financial reports,complies with applicable laws and regulations,and conducts its operations in an efficient and effective manner are collectively

Financial and management accounting information Explain one way in which the characteristics of financial and management accounting information differ.

The American Institute of Certified Public Accountants has the legal authority over publicly held corporations to enforce compliance with generally accepted accounting principles.

The American Institute of Certified Public Accountants has a code of professional conduct that expresses the accounting profession's recognition of its responsibilities to all of the following except:

A strong internal control structure:

It is the function of management accounting to perform the following activities,except:

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