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

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?

Accepted Answer

A) Internal Revenue Service. 
B) Institute of Management Accountants. 
C) Financial Accounting Standards Board. 
D) New York Stock Exchange. 
A) Internal Revenue Service. 
B) Institute of Management Accountants. 
C) Financial Accounting Standards Board. 
D) New York Stock Exchange.

Question 3

Which of the following are not considered "external" users of financial statements?

Accepted Answer

A) Owners. 
B) Creditors. 
C) Labor unions. 
D) Managers. 
A) Owners. 
B) Creditors. 
C) Labor unions. 
D) Managers.

Question 4

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 5

Which of the following statements is considered a "snapshot" of the business in financial or dollar terms?

Accepted Answer

A) Statement of financial position. 
B) Statement of cash flows. 
C) Income statement. 
D) The federal income tax return. 
A) Statement of financial position. 
B) Statement of cash flows. 
C) Income statement. 
D) The federal income tax return.

Question 6

Development of generally accepted accounting principles
(A. )What is meant by the phrase "generally accepted accounting principles"?
(B. )Give the names of three organizations that currently play an active role in the development of accounting principles in the United States.

Accepted Answer

(A. )Generally accepted accounting princ

Question 7

External users of accounting information have a financial interest in an entity but are not involved with the day-to-day operations of the enterprise.

Accepted Answer

A) True 
 B)False

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

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 10

Which financial statement is prepared as of a specific date?

Accepted Answer

A) The balance sheet 
B) The income statement 
C) The statement of cash flows 
D) The balance sheet,income statement,and statement of cash flows are all for a period of time rather than at a specific date. 
A) The balance sheet 
B) The income statement 
C) The statement of cash flows 
D) The balance sheet,income statement,and statement of cash flows are all for a period of time rather than at a specific date.

Question 11

Which of the following does not describe accounting?

Accepted Answer

A) It is commonly referred to as the language of business. 
B) It is an end rather than a means to an end. 
C) It is useful for decision-making. 
D) It is used by businesses,governments,non-profit organizations,and individuals. 
A) It is commonly referred to as the language of business. 
B) It is an end rather than a means to an end. 
C) It is useful for decision-making. 
D) It is used by businesses,governments,non-profit organizations,and individuals.

Question 12

Investors may be described as:

Accepted Answer

A) Individuals and enterprises that have provided credit to a reporting entity. 
B) Individuals and enterprises that have ownership interest in a reporting entity. 
C) Anyone with an interest in the results of the operations of the reporting entity. 
D) Those whose primary economic activity consists of buying and selling stocks and bonds. 
A) Individuals and enterprises that have provided credit to a reporting entity. 
B) Individuals and enterprises that have ownership interest in a reporting entity. 
C) Anyone with an interest in the results of the operations of the reporting entity. 
D) Those whose primary economic activity consists of buying and selling stocks and bonds.

Question 13

Public accounting is the segment of the profession where professionals offer audit,tax,and consulting services to clients.

Accepted Answer

A) True 
 B)False

Question 14

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 15

The CPA examination is administered by the General Accounting Office of the U.S.Government.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a characteristic of financial accounting information?

Accepted Answer

A) Its preparation requires judgment. 
B) It is more about the future than it is about the past. 
C) None of it is based on estimates,assumptions,and judgments. 
D) Notes and explanations from management are not included. 
A) Its preparation requires judgment. 
B) It is more about the future than it is about the past. 
C) None of it is based on estimates,assumptions,and judgments. 
D) Notes and explanations from management are not included.

Question 17

The New York Stock Exchange requires all listed companies to:

Accepted Answer

A) Register with the PCAOB (Public Company Accounting Oversight Board). 
B) Send 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 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 18

Overseeing a company's affairs to ensure that the company is managed with the best interest of shareholders in mind is called:

Accepted Answer

A) Internal control. 
B) Financial integrity. 
C) Corporate governance. 
D) The audit function. 
A) Internal control. 
B) Financial integrity. 
C) Corporate governance. 
D) The audit function.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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 makin

Exam 1: Accounting: Information for Decision Making

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

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?

Which of the following are not considered "external" users of financial statements?

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

Which of the following statements is considered a "snapshot" of the business in financial or dollar terms?

Development of generally accepted accounting principles (A. )What is meant by the phrase "generally accepted accounting principles"? (B. )Give the names of three organizations that currently play an active role in the development of accounting principles in the United States.

External users of accounting information have a financial interest in an entity but are not involved with the day-to-day operations of the enterprise.

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

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

Which financial statement is prepared as of a specific date?

Which of the following does not describe accounting?

Investors may be described as:

Public accounting is the segment of the profession where professionals offer audit,tax,and consulting services to clients.

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

The CPA examination is administered by the General Accounting Office of the U.S.Government.

Which of the following is a characteristic of financial accounting information?

The New York Stock Exchange requires all listed companies to:

Overseeing a company's affairs to ensure that the company is managed with the best interest of shareholders in mind is called:

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

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

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

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters