Accounting for Decision Makers - C213 Pre-Assessment 2024 Complete Solutions Which of the following is the most correct definition of accounting? - Correct Answer A system for providing quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions What is NOT typically true of accounting information? - Correct Answer The information relates to future time periods.Which is NOT a key component of the definition of accounting? - Correct Answer Qualitative What is true about the double-entry system of bookkeeping? - Correct Answer It was developed in the 1300s−1400s in Italy.Businesses use accounting systems to - Correct Answer Analyze transactions; Handle routine bookkeeping tasks; Evaluate performance and health of the business.What is not a function of accounting? - Correct Answer Executing sales transactions for organizations What is NOT one of the three primary financial statements? - Correct Answer Statement of retained earnings Generally accepted accounting principles are - Correct Answer Developed by accounting rule makers The initials GAAP stand for - Correct Answer Generally Accepted Accounting Principles The current standard-setting board for accounting in the private sector is the - Correct Answer Financial Accounting Standards Board (FASB) Which of the following organizations has specific legal authority to establish accounting standards for publicly held companies? - Correct Answer Securities and Exchange Commission (SEC) 1 / 3
Which is NOT a service typically provided by large public accounting firms? - Correct Answer Making management decisions The organization that develops worldwide accounting standards is the - Correct Answer International Accounting Standards Board (IASB) The initials CPA stand for - Correct Answer Certified Public Accountant Which of the following financial statements reports a company's resources, obligations, and owner's equity? - Correct Answer Balance sheet Which of the following financial statements reports the excess of a company's revenues over its expenses? - Correct Answer Income statement Which of the following financial statements reports the amount of cash collected and paid out by a company? - Correct Answer Statement of cash flows The emphasis in financial accounting is on which of the following external user groups? - Correct Answer Investors and creditors The primary internal group that uses accounting information is - Correct Answer Management Internal reports are generally used by - Correct Answer Management Which of the following is NOT an external user of financial information? - Correct Answer Management Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? - Correct Answer It is a government agency Generally accepted accounting principles are - Correct Answer Developed by accounting rule makers 2 / 3
The initials GAAP stand for - Correct Answer Generally Accepted Accounting Principles The current standard-setting board for accounting in the private sector is the - Correct Answer Financial Accounting Standards Board (FASB) Which of the following organizations has specific legal authority to establish accounting standards for publicly held companies? - Correct Answer Securities and Exchange Commission (SEC) Which of the following is NOT a service typically provided by large public accounting firms? - Correct Answer Making management decisions The organization that develops worldwide accounting standards is the - Correct Answer International Accounting Standards Board (IASB) The initials CPA stand for - Correct Answer Certified Public Accountant Standards established by the International Accounting Standards Board are referred to as - Correct Answer International Financial Accounting Standards Which of the following is NOT a reason for the integration of worldwide accounting standards? - Correct Answer the theoretical necessity of a common set of accounting standards The International Accounting Standards Board (IASB) is charged with developing worldwide accounting practices - Correct Answer True With the current state of information technology, investors outside a company are now allowed access to a company's internal database of financial information and do their own customized analysis of a firm's performance. - Correct Answer False Increased federal oversight of the audit process resulted from the passage of the following act of Congress - Correct Answer Sarbanes-Oxley Act
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