Accounting 233 Chpt 1 SB

Prior to the establishment of the FASB, which organization had primary responsibility for promulgating accounting standards? a) IMA b) AAA c) COSO d) AICPA e) IIA

AICPA

Which organization is responsible for preparing and grading the CPA exam? Multiple choice question. AICPA AAA COSO IMA IIA

AICPA

True/False: Investors and creditors are examples of individuals with a financial interest in a company that benefit from an understanding of accounting measurements.

true

IMA

Sponsors the Certified Management Accountant (CMA) exam and program

The term financial position is used to describe (Multiple choice question) A) financial activities during the year. B) cash inflows and outflows during the year. C)changes in owners' equity accounts during the year. D) an entity's financial resources and obligations

an entity's financial resources and obligations

The CPA designation is granted by Multiple choice question. an individual state. the AICPA. the COSO. the SEC. the federal government.

an individual state

The _ _ is a financial position statement that shows where the company stands in financial terms at a specific date.

balance sheet

The statement of _ _ is a(n) activity statement

cash flow

Which of the following is a user of internal accounting information? (Select all that apply). Multiple select question. chief executive officer customers store managers governmental regulators

chief executive officer store managers

Which of the following is a characteristic of accounting information with integrity? A) cost-beneficial B) impaired C) timely D) complete

complete

Accounting information measures the _ _ of resource usage.

efficiency and effectiveness

A management accounting information system is useful in: (Select all that apply). Multiple select question. evaluating and rewarding decision-making performance. assessing an entity's profitability. providing a signal as to employee performance. assessing an entity's cash flow-generating ability.

evaluating and rewarding decision-making performance providing a signal as to employee performance

Individuals and other enterprises that have a financial interest in the reporting enterprise but that are not involved in the day-to-day operations of that enterprise are _ users.

external

Based on the AICPA's code of professional conduct, a member in public practice should be independent in _ and in _

fact; appearance

_ accounting refers to the information describing the financial resources, obligations, and activities of an economic entity.

financial

The information provided by _ _ (two words) is designed to primarily benefit investors and creditors in deciding where to place their scarce investment resources.

financial statements

Which characteristics define a profession? (Select all that apply). Multiple select question. A high status and a large salary A complex and evolving body of knowledge Serving the public interest Professional judgment

A complex and evolving body of knowledge Serving the public interest Professional judgment

Which organization is responsible for issuing the internal control framework used in the United States for evaluating the effectiveness of an entity's internal control over financial reporting? Multiple choice question. AAA COSO IMA AICPA IIA

COSO

True or false: Accounting information is only relevant to businesses.

False

Which of the following are reliable sources of financial information for investors and creditors? (Select all that apply). Multiple select question. Unfamiliar internet sources Financial statements of companies Press releases directly from companies Daily publications, such as the Wall Street Journal

Financial statements of companies Press releases directly from companies Daily publications, such as the Wall Street Journal

IIA

Issues the Standards for the Professional Practice of Internal Auditing

Which of the following are characteristics of management accounting information? (Select all that apply). Multiple select question. Needs to be timely Measures compliance with accounting standards Oriented toward the past Needs to be provided to those with decision-making authority

Needs to be timely Needs to be provided to those with decision-making authority

COSO

Primarily focuses on enterprise risk management, internal control, and fraud deterrence

AAA

Primarily focuses on improving accounting education

Financial accounting information is used for so many different purposes that it is often referred to as "_-_" accounting information

general-purpose

Financial accounting information is useful in deciding where to place scarce _ resources.

investment, economic, or capital

The most general objective of external financial reporting is to provide information that is useful in making _ and _ decisions.

investment; credit

Financial accounting information is primarily designed to benefit which group? a) employees b) suppliers c)taxing authorities d) investors

investors

The three types of accounting information used in the business community include all of the following EXCEPT? A) management B) judgements C) tax D) financial

judgements

Which group is the primary user of management accounting information? A) taxing authorities B) investors C) management D) creditors

management

Which of the following items are accounting measurements? Multiple select question. sales volume costs company stock price board independence corporate political contributions profits

sales volume, costs, and profits