Chapter 1 Revew Accounting Help
Multiple Choice Questions
1. Which of the following entities would not require accounting information pertaining to their economic activities? a. Social clubs. b. Not-for-profit entities. c. State governments. D. All of these require accounting information. e. None of these requires accounting information. Difficulty: Easy
2. Which of the following is not an objective of financial reporting described in FASB Concepts Statement No. 1? a. To provide information about how management of an enterprise has discharged its stewardship responsibility to owners. B. To measure the current market value of the business enterprise. c. To provide information so potential investors or creditors can make their own predictions of future earnings. d. To focus primarily on information about earnings and its components. e. All of these are objectives of financial reporting. Difficulty: Medium
3. Which of the following statements about the Financial Accounting Standards Board is correct? a. The FASB is an agency of the Federal government. b. The FASB has the authority to fine a noncompliant firm. C. The FASB follows a due process procedure that permits input from interested parties before a standard is issued. d. The FASB is controlled by the American Institute of CPA 's. e. None of these statements is correct. Difficulty: Medium 4. Major classifications of accounting activity would not include: a. financial accounting, internal auditing, public accounting. b. internal auditing, governmental accounting, managerial accounting. C. financial accounting, national accounting, cost accounting. d. auditing, income tax accounting, governmental accounting. Difficulty: Easy
5. Which of the following is not an example of a decision or informed judgment that a potential investor would make from accounting information? a. Future profitability based on past profitability. B. Probability of success of a new product development. c. A forecast of dividends. d.
1. Which of the following entities would not require accounting information pertaining to their economic activities? a. Social clubs. b. Not-for-profit entities. c. State governments. D. All of these require accounting information. e. None of these requires accounting information. Difficulty: Easy
2. Which of the following is not an objective of financial reporting described in FASB Concepts Statement No. 1? a. To provide information about how management of an enterprise has discharged its stewardship responsibility to owners. B. To measure the current market value of the business enterprise. c. To provide information so potential investors or creditors can make their own predictions of future earnings. d. To focus primarily on information about earnings and its components. e. All of these are objectives of financial reporting. Difficulty: Medium
3. Which of the following statements about the Financial Accounting Standards Board is correct? a. The FASB is an agency of the Federal government. b. The FASB has the authority to fine a noncompliant firm. C. The FASB follows a due process procedure that permits input from interested parties before a standard is issued. d. The FASB is controlled by the American Institute of CPA 's. e. None of these statements is correct. Difficulty: Medium 4. Major classifications of accounting activity would not include: a. financial accounting, internal auditing, public accounting. b. internal auditing, governmental accounting, managerial accounting. C. financial accounting, national accounting, cost accounting. d. auditing, income tax accounting, governmental accounting. Difficulty: Easy
5. Which of the following is not an example of a decision or informed judgment that a potential investor would make from accounting information? a. Future profitability based on past profitability. B. Probability of success of a new product development. c. A forecast of dividends. d.