Chapter 1 Test Bank

Chapter 1

Multiple-Choice Questions

|1. |Recording, classifying, and summarizing economic events in a logical manner for the purpose of providing financial |
|easy |information for decision making is commonly called: |
|c |a. finance. |
| |b. auditing. |
| |c. accounting. |
| |d. economics. |
| | |
|2. |In the audit of historical financial statements, which of the following accounting bases is the most common? |
|easy | |
|c |a. Regulatory accounting principles. |
| |b. Cash basis of accounting. |
| |c. Generally accepted accounting principles. |
| |d. Liquidation basis of accounting. |
| |