Question 1

Financial accounting information is:

Accepted Answer

A) Designed to assist investors and creditors. 
B) Submitted to the IRS in lieu of a tax form. 
C) Called "special-purpose" accounting information. 
D) Not applicable to individuals. 
A) Designed to assist investors and creditors. 
B) Submitted to the IRS in lieu of a tax form. 
C) Called "special-purpose" accounting information. 
D) Not applicable to individuals.

Question 2

The primary function of external auditors is to:

Accepted Answer

A) Express an opinion on the fairness of the company's financial statements. 
B) Determine the accuracy of the management reports. 
C) Evaluate the efficiency of operations and the degree of compliance with management's policies in all departments within a large organization. 
D) Determine that financial statements and all special reports to management are prepared in conformity with generally accepted accounting principles. 
A) Express an opinion on the fairness of the company's financial statements. 
B) Determine the accuracy of the management reports. 
C) Evaluate the efficiency of operations and the degree of compliance with management's policies in all departments within a large organization. 
D) Determine that financial statements and all special reports to management are prepared in conformity with generally accepted accounting principles.

Question 3

The basic purpose of an audit is to:

Accepted Answer

A) Assure outsiders that financial statements are prepared in conformity with GAAP. 
B) Provide as much useful information to decision makers as possible,regardless of cost. 
C) Record changes in the financial position of an organization by applying the concepts of double entry accounting. 
D) Meet an organization's need for accounting information as efficiently as possible. 
A) Assure outsiders that financial statements are prepared in conformity with GAAP. 
B) Provide as much useful information to decision makers as possible,regardless of cost. 
C) Record changes in the financial position of an organization by applying the concepts of double entry accounting. 
D) Meet an organization's need for accounting information as efficiently as possible.

Question 4

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.

Question 5

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 generally 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 generally oriented toward the future. 
D) It measures efficiency and effectiveness.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

A complete set of financial statements for Citywide Company,at December 31,2018,would include each of the following,except:

Accepted Answer

A) Balance sheet as of December 31,2018. 
B) Income statement for the year ended December 31,2018. 
C) Statement of projected cash flows for 2019. 
D) Notes containing additional information that is useful in interpreting the financial statements. 
A) Balance sheet as of December 31,2018. 
B) Income statement for the year ended December 31,2018. 
C) Statement of projected cash flows for 2019. 
D) Notes containing additional information that is useful in interpreting the financial statements.

Question 8

List the three financial statements that are used to communicate financial accounting information to interested external parties.

Accepted Answer

Balance sheet (State

Question 9

The basic purpose of bookkeeping is to:

Accepted Answer

A) Provide financial information about an economic entity. 
B) Develop the types of information best-suited to specific managerial decisions. 
C) Record the financial transactions of an economic entity. 
D) Determine the taxable income of individuals and business entities. 
A) Provide financial information about an economic entity. 
B) Develop the types of information best-suited to specific managerial decisions. 
C) Record the financial transactions of an economic entity. 
D) Determine the taxable income of individuals and business entities.

Question 10

The accounting standards and concepts used in the preparation of financial statements are called:

Accepted Answer

A) Certified principles of accounting (CP
A) . 
B) Generally accepted accounting principles (GAAP). 
C) Federal accounting standards and bylaws (FAS
B) . 
D) Standards enforcing consistency (SE
C) . 
A) Certified principles of accounting (CP
A) . 
B) Generally accepted accounting principles (GAAP). 
C) Federal accounting standards and bylaws (FAS
B) . 
D) Standards enforcing consistency (SE
C) .

Question 11

The Sarbanes-Oxley Act of 2002 created:

Accepted Answer

A) The Security and Exchange Commission. 
B) The Financial Accounting Standards Board. 
C) The Public Company Accounting Oversight Board. 
D) The Income Tax Return Overview Board. 
A) The Security and Exchange Commission. 
B) The Financial Accounting Standards Board. 
C) The Public Company Accounting Oversight Board. 
D) The Income Tax Return Overview Board.

Question 12

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 13

Accounting terminology
Listed below are seven accounting organizations introduced in this chapter:   Each of the following statements may (or may not)describe one of these organizations.In the space provided below each statement,indicate the accounting organization described,or answer "None" if the statement does not correctly describe any of the organizations.
(A. )Private sector organization that establishes accounting standards.
(B. )A professional organization that establishes standards for the conduct of professional services other than audits.
(C. )A government organization that establishes financial reporting requirements for publicly-held companies in the United States.
(D. )A federal government agency that audits many other agencies of the federal government and reports its findings to Congress.
(E. )A professional organization dedicated to the improvement of accounting education,research,and practice.
(F. )A professional organization that influences the concepts and ethical practice of management accounting.
(G. )A professional organization that establishes global accounting standards.

Accepted Answer

(A. )Financial Accounting Standards Boar

Question 14

Investors are individuals and other enterprises that have provided equity to the reporting enterprise.

Accepted Answer

A) True 
 B)False

Question 15

The auditor's report on the published financial statements of a large corporation should be viewed as:

Accepted Answer

A) The opinion of independent experts as to the overall fairness of the statements. 
B) The opinion of the corporation's chief accountant as to the overall fairness of the statements. 
C) A guarantee by a firm of certified public accountants that the statements are accurate. 
D) A guarantee by the Financial Statements Insurance Board that the statements do not overstate assets or net income. 
A) The opinion of independent experts as to the overall fairness of the statements. 
B) The opinion of the corporation's chief accountant as to the overall fairness of the statements. 
C) A guarantee by a firm of certified public accountants that the statements are accurate. 
D) A guarantee by the Financial Statements Insurance Board that the statements do not overstate assets or net income.

Question 16

An accounting practice can become a "generally accepted accounting principle" through widespread use,even if the practice is not mentioned in the official pronouncements of the accounting standard-setting organizations.

Accepted Answer

A) True 
 B)False

Question 17

Investors and creditors are interested in a company's "cash flow prospects." What two specific concerns of investors and creditors are summarized by the term "cash flow prospects?"

Accepted Answer

Return of

Question 18

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

Accepted Answer

Integrity refers to the qualities of com

Exam 1: Accounting: Information for Decision Making

Financial accounting information is:

The primary function of external auditors is to:

The basic purpose of an audit is to:

The financial statements of a business entity:

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

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

A complete set of financial statements for Citywide Company,at December 31,2018,would include each of the following,except:

List the three financial statements that are used to communicate financial accounting information to interested external parties.

The basic purpose of bookkeeping is to:

The accounting standards and concepts used in the preparation of financial statements are called:

The Sarbanes-Oxley Act of 2002 created:

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

Investors are individuals and other enterprises that have provided equity to the reporting enterprise.

The auditor's report on the published financial statements of a large corporation should be viewed as:

An accounting practice can become a "generally accepted accounting principle" through widespread use,even if the practice is not mentioned in the official pronouncements of the accounting standard-setting organizations.

Investors and creditors are interested in a company's "cash flow prospects." What two specific concerns of investors and creditors are summarized by the term "cash flow prospects?"

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

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