Wk 1 – Practice: Topic 1: The Purpose of Accounting Quick Check
Accounting is often called the: -Foundation upon which business decisions are made -Language of business -Major of choice for "numbers" people -Measurement and reporting metrics for managers
Language of business
Accounting can be best described as a: -Manufacturing activity -Service activity -Retailing activity -All of these are correct
Service activity
Which of the following is the most correct definition of accounting? -An entity without a profit objective, oriented toward providing services efficiently and effectively -The procedures and processes used by a company to analyze transactions and handle routine bookkeeping tasks -The preservation of a systematic, quantitative record of an activity -A system for providing quantitative information, primarily financial in nature, about economic entities that are intended to be useful in making economic decisions
A system for providing quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions
Businesses use accounting systems to: -Evaluate the performance and health of the business -All of these are correct -Handle routine bookkeeping tasks -Analyze transactions
All of these are correct
Bookmark question for later Accountants typically perform what action related to the financial results of business activities? -Report the results of business activities -Advise on how to structure business activities -Both report the results of and advise on how to structure business activities -None of these are correct
Both report the results of and advise on how to structure business activities
Which of the following is a typical source of monetary resources for a business enterprise? -Business earnings -Government agencies -Employees -Watchdog groups
Business earnings
Which of the following is a key component of the definition of accounting? -Exact -Financial -Qualitative -Theoretically correct
Financial
Which of the following is an important step in the decision-making process? -Guaranteeing a good outcome -Selecting the option that will result in the greatest financial increase -Gathering information -Ensuring that all stakeholders are consulted
Gathering information
The accounting cycle includes all of the following, EXCEPT: -Interpreting -Recording -Summarizing -Analyzing
Interpreting
Which of the following is typically true of accounting information? -The information does not relate to specific accounting entities. -The information is qualitative in nature. -The information relates to future time periods. -The information is primarily financial in nature.
The information is primarily financial in nature.
