88 test bank for college accounting 2nd edition

Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Financial Accounting An Introduction. Free Test Bank with Answers for Auditing and Assurance Services Understandin Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Advanced Accounting 12th Edition Test Bank with Answers for Auditing A Business Risk Approach 8th Edition Free Test Bank for Management Accounting with Answers Ngân hàng câu hỏi trắc nghiệm Hệ thống thông tin kế toán, Ngân hàng câu hỏi kèm đáp án đề trắc nghiệm Tài chính kế toán, đề trắc nghiệm Quản trị kế toán, kế toán nâng cao, Đề trắc nghiệm có đáp án Tài chính kế toán, Kế toán kiểm toán, kế toán quản trji Test Bank for Managerial Accounting with Answers Đề trắc nghiệm kế toán, trắc nghiệm tài chính, Test bank for Accounting, Test bank with Answer, Test Bank Financial Accounting

88 Test Bank for College Accounting 2nd Edition

Multiple Choice Questions

Accounting software:

1 A.Has replaced the need for accountants.

2 B.Has not changed the work that accountants do.

3 C.Has improved clerical accuracy.

4 D.Has replaced the need for decision makers.

5 E.Is only available to large corporations.

The committee that attempts to create more harmony among

the accounting practices of different countries by

identifying preferred practices and encouraging their worldwide acceptance is the:

1 A.AICPA.

2 B.FASB.

3 C.CAP.

4 D.SEC.

5 E.IASB.

Internal users of accounting information include:

1 A.Shareholders.

2 B.Managers.

3 C.Lenders.

4 D.Suppliers.

5 E.Customers.

The primary objective of financial accounting is:

1 A.To serve the decision-making needs of internal users.

2 B.To provide financial statements to help external users analyze an organization's activities.

3 C.To monitor and control company activities.

4 D.To provide information on both the costs and benefits of looking after products and services.

5 E.To know what, when, and how much to produce.

The private board that currently has the authority to establish

generally accepted accounting principles is the:

1 A.APB.

2 B.FASB.

3 C.AAA.

4 D.AICPA.

5 E.SEC.

Career opportunities in accounting include:

1 A.Budgeting.

2 B.Auditing.

3 C.Cost accounting.

4 D.Internal Auditing.

5 E.All of these.

Accounting is an information and measurement system that:

1 A.Identifies business activities.

2 B.Records business activities.

3 C.Communicates business activities.

4 D.Helps people make better decisions.

5 E.All of these.

The International Accounting Standards Board (IASB)

1 A.Hopes to create harmony among accounting practices of different countries.

2 B.Is the government group that establishes reporting requirements for companies that issue stock to the public.

3 C.Has the authority to impose its standards on companies.

4 D.Is the only source of generally accepted accounting principles (GAAP).

5 E.Only applies to companies that are members of the European Union.

Accounting

1 A.Is an information and measurement system.

2 B.Identifies, records, and communicates information about business activities.

3 C.Helps people make better decisions.

4 D.Provides information about a company's performance.

5 E.All of these.

External users of accounting information include:

1 A.Shareholders.

2 B.Customers.

3 C.Creditors.

4 D.Government regulators.

5 E.All of these.

Career opportunities in accounting include:

1 A.Auditing.

2 B.Management consulting.

3 C.Tax accounting.

4 D.Cost accounting.

5 E.All of these.

Ethics:

1 A.Are beliefs that separate right from wrong.

2 B.And law often coincide.

3 C.Help to prevent conflicts of interest.

4 D.Are critical in accounting.

5 E.All of these.

The area of accounting aimed at serving the decision-making

needs of internal users is:

1 A.Financial accounting.

2 B.Managerial accounting.

3 C.External auditing.

4 D.SEC reporting.

5 E.Bookkeeping.

The rules adopted by the accounting profession as guides in

preparing financial statements are:

1 A.Comprised of both general and specific principles.

2 B.Known as generally accepted accounting principles.

3 C.Abbreviated as GAAP.

4 D.Intended to make information in financial statements relevant, reliable, and comparable.

5 E.All of these.

Accounting certifications include the:

1 A.Certified Public Accountant.

2 B.Certified Management Accountant.

3 C.Certified Internal Auditor.

4 D.Certified Bookkeeper.

5 E.All of these.

The financial statements prepared for external users is often

referred to as

1 A.The books.

2 B.Integrated financial statements.

3 C.Statements of financial position.

4 D.General purpose financial statements.

5 E.Proforma financial statements.

A Certified Public Accountant

1 A.Must meet education and experience requirements.

2 B.Must pass an examination.

3 C.Must exhibit ethical character.

4 D.May also be a Certified Management Accountant.

5 E.All of these.

Ethical behavior:

1 A.Requires that auditors' pay not depend on the figures in the client's reports.

2 B.Encourages auditors to invest in businesses they audit.

3 C.Does not affect external users.

4 D.Is rarely an issue in business.

5 E.All of these.

The board of directors report to

1 A.Shareholders.

2 B.Lenders.

3 C.Management.

4 D.SEC.

5 E.All of these.

Generally accepted accounting principles:

1 A.Are practices adopted by accountants to make accounting easier.

2 B.Are only necessary when convenient.

3 C.Can be overruled if approved by the SEC.

4 D.Strive to make information relevant, reliable and comparable.

5 E.None of these.

The organization responsible for overseeing the work of

external auditors is the:

1 A.FASB.

2 B.SEC.

4 D.GAAP.

5 E.AICPA.

In order to be useful, accounting information must be

1 A.Reliable.

2 B.Relevant.

3 C.Conform to GAAP.

4 D.Both a and b.

5 E.All of these.

Rules adopted by the accounting profession to make

information relevant, reliable and comparable:

1 A.Are comprised of both general and specific principles.

2 B.Are known as generally accepted accounting principles.

3 C.Are abbreviated as GAAP.

4 D.Are established by FASB and SEC.

5 E.All of these.

Examples of social responsibility include:

1 A.Donating computers to a local elementary school.

2 B.Enacting stricter production-pollution standards.

3 C.Sponsoring a summer free-lunch program.

4 D.Improving lighting in a production room.

5 E.All of these.

True False Questions

Accounting information systems collect, process and report

information to decision makers

1 True

2 False

The Financial Accounting Standards Board is the private group

that sets both broad and specific accounting principles

1 True

2 False

Understanding generally accepted accounting principles is not

necessary to use and interpret financial statements

1 True

2 False

The primary objective of financial accounting is to provide

general purpose financial statements to help external users analyze and interpret an organization's activities

1 True

2 False

Bookkeeping is the same as accounting

1 True

2 False

Accounting is one way important information about businesses

is reported to decision makers

1 True

2 False

The Financial Accounting Board is the group that establishes

reporting requirements for companies that issue stock to the public

1 True

2 False

Public accounting provides the majority of the career

opportunities

1 True

2 False

Accounting is an information and measurement system that

identifies, records, and communicates financial

information to users

1 True

2 False

Generally accepted accounting principles were established to

improve conformity in financial reporting by making

information relevant, reliable and comparable

1 True

2 False

Generally accepted accounting principles are the basic

assumptions, concepts, and guidelines for preparing

financial statements

1 True

2 False

Separate legal status means that a corporation can conduct

business with the rights, duties and responsibilities as a person

1 True

2 False

The majority of accounting career opportunities are in the

private sector

1 True

2 False

The Sarbanes-Oxley Act requires issuers of securities to

disclose the adoption of an ethics code

1 True

2 False

Internal auditors assess an employer's procedures and controls

over recordkeeping activities and physical control of a firm's assets

1 True

2 False

Internal controls are procedures designed to protect company

property, ensure reliable reports, promote efficiency and ensure employees follow company policies

1 True

2 False

Ethics are not important to decision making in accounting

1 True

2 False

US accounting practices are viewed as rule-based as financial

statements are prepared using technical, specific and detailed rules

1 True

2 False

Separate legal status means that owners, called shareholders

are not personally liable for corporate acts and debts

1 True

2 False

Accounting software packages reduce the time, effort and cost

of recordkeeping

1 True

2 False

Managerial accounting is an area of accounting that provides

internal reports to assist in the decision-making needs of internal users

1 True

2 False

The Securities and Exchange Commission (SEC) is an arm of

the federal government that establishes reporting

requirements for companies that issue stock to the

public

1 True

2 False

Guidelines for ethical decision making requires recognition of

an ethical concern and consideration of good and bad consequences

1 True

2 False

External users include lenders, shareholders, customers, and

regulators

1 True

2 False

Opportunities in accounting include auditing, management

consulting,and tax planning

1 True

2 False

Bookkeeping is the recording of transactions and events and is

only part of accounting

1 True

2 False

Good ethics are good business

1 True

2 False

Internal users include lenders, shareholders, brokers and

managers

1 True

2 False

Internal reports are subject to the same rules as external

reports as consistency is important and makes

information more useful to the user

1 True

2 False

External auditors examine financial statements to determine if

they are prepared according to generally accepted

accounting principles

1 True

2 False

State ethics codes require CPAs who audit financial statements

to disclose areas where those statements fail to comply with GAAP

1 True

2 False

Three forms of business include service providers, wholesalers

and retailers

1 True

2 False

A limited liability company is treated like a corporation for

liability and tax purposes

1 True

2 False

Identifying the proper ethical path is easy

1 True

2 False

Text Questions

Explain the flow of accounting in a business's activities.

Answer Given

Accounting is a process that identifies business related transaction and events to record, measure and classify This information must then be communicated out in the form of financial statements.

_ is the federal agency that sets

reporting rules for organizations that sell ownership

shares to the public.

Answer Given

SEC (Securities and Exchange Commission)

Identify the users and uses of accounting information.

Answer Given

There are two general types of users of accounting information (1) Internal users are managers and officers of businesses They require information about business

activities in order to make decisions about planning, monitoring, and control (2)

External users rely on financial statements to make business decisions These users include lenders, and shareholders Lenders need information for measuring the risk and return of loans Shareholders need information for assessing the risk and return in owning shares.

Accounting is an that identifies,

records and communicates relevant, reliable and

comparable information about an organization's

economic activities.

Answer Given

information and measurement system (or information system)

is the recording of transactions

or events, and is just one part of accounting.

Answer Given

Recordkeeping (or bookkeeping)

is the recording of financial

transactions and events, either manually or electronically.

Answer Given

Recordkeeping or bookkeeping

is the independent group of full-time

members responsible for setting the rules of accounting.

Answer Given

FASB (Financial Accounting Standards Board)

How do the information needs of external users such as lenders

differ from an external auditor?

Answer Given

Lenders use a company's accounting information to establish credit-worthiness and assess risk involved in loaning money Whereas, an external auditors may look at the same accounting information to determine compliance with standards and practices (GAAP).

_ are those that use accounting information for

the purpose of managing the organization.

Answer Given

Internal Users

Identify the two main groups involved in establishing generally

accepted accounting principles.

Answer Given

The FASB is the private group that establishes GAAP The SEC establishes reporting requirements for companies that issue stock to the public.

Managerial Accounting is the area of accounting mainly aimed

at serving the decision making needs of the

_.

Answer Given

internal users

Explain the role of accounting in the information age.

Answer Given

Accounting is an information and measurement system It identifies, records, and communicates relevant, reliable and comparable information about business activities Accounting also includes the crucial process of analysis and interpretation.

Explain why accounting is referred to as "the language of

business".

Answer Given

Because all types and functions of organizations must use this "language" to

communicate necessary decision-making information.

are procedures set up to protect

company property and equipment, ensure reliable

accounting reports, promote efficiency, and encourage adherence to company policies.

Answer Given

Internal controls

What are two questions that an owner might be able to answer

by looking at accounting information?

Answer Given

Some possible questions are: 1) How, what, when and how much must be purchased? 2) What are the projected sales and costs? 3) What are the costs and benefits of particular products and service? 4) What were the payroll costs last month? 5) What is the projected number of employees needed in the next month? Many other questions are possible.

What aspects of business involve accounting?

Answer Given

All aspects of business involve accounting from buying and selling goods and services

to credit approval, checking accounts and payroll All business functions perform

recordkeeping.

What is social responsibility?

Answer Given

A company's involvement in and concern for society's well being Being socially

responsible might include acts of charity, measures to increase product safety, or support of public systems such as education.

is the area of accounting aimed at serving

external users.

Answer Given

Financial accounting

International Accounting Standards Board is the group that

works to identify and encourages global acceptance.

Answer Given

preferred accounting practices

What are some examples of how an organization can act

socially responsible?

Answer Given

Organizations can make donations to other organizations that focus on social well being, such as hospitals, schools and community programs They can also become involved in social programs including product and worker safety campaigns.

What is the purpose of the internal controls in a company?

Answer Given

Internal controls are necessary to monitor and control a company's activities Internal control procedures protect, promote reliability, efficiency and adherence to company policies.

What role does technology play in the accounting function?

Answer Given

In today's information age, technology plays a major role in improving efficiency of performing record keeping, as well as reducing frequency of errors.

_ are beliefs that separate right from wrong.

Answer Given

Ethics

Explain why ethics are an integral part of accounting.

Answer Given

The purpose of accounting is to provide useful information for decision makers For information to be useful, it must be trusted This requires ethical behavior by

accountants and managers in all phases of gathering, analyzing and reporting financial information so that good decisions are made.