Accounting Chapter 1 Quiz

Which of the following is typically required for entry-level positions in the accounting profession?

Bachelor's degree

Accounting is sometimes called the "language of _____.

Business

Most states require 150 semester hours of college credit for which professional certification?

Certified Public Accountant (CPA)

Which of the following is not an example of a retailer?

Computer Manufacturer

Financial Accounting

Measures the financial performance of an organization using standard conventions to prepare financial reports

The primary purpose of what type of business is to serve a particular need in the community

Not-for-profit

What type of organization primarily offers tax compliance, auditing, and consulting services?

Public accounting firms

Which of the following is not considered a stakeholder of an organization?

a business in another industry

lender

bank or other institution that has the primary purpose of lending money

transaction

business activity or event that has an effect on financial information presented on financial statements.

Service business

business that does not sell tangible products to customers but rather sells intangible benefits (services) to customers; can be either a for-profit or a not-for-profit organization

Creditor

business that grants extended, but short-term, payment terms to other businesses

Generally Accepted Accounting Principles (GAAP)

common set of rules, standards, and procedures that publicly traded companies must follow when composing their financial statements

privately held company

company whose stock is available only to employees or select individuals or groups

publicly traded company

company whose stock is traded (bought and sold) on an organized stock exchange

The accounting information of a privately held company is generally available to all of the following except for ________.

competitors

External users of financial accounting information include all of the following except ________.

employees of a business

Which of the following skills/attributes is not a primary skill for accountants to possess?

extensive computer programming background

Securities and Exchange Commission (SEC)

federal regulatory agency that regulate corporations with shares listed and traded on security exchanges through required periodic fillings

retail business

for profit business that purchases products (called inventory) and resells the products without altering them

Manufacturing business

for-profit business that is designed to make a specific product or products

A governmental agency can best be described by which of the following statements?

has a primary purpose of using taxpayer funds to provide services

For-profit business

has the primary purpose of earning a profit by selling goods and services

not-for-profit (NFP) accounting

including charities, universities, and foundations, helps ensure that donor funds are used for the intended mission of the not-for-profit entity

Financial Accounting Standards Board (FASB)

independent, nonprofit organization that sets financial accounting and reporting standards for both price and public sector businesses in the United Stated states that use Generally Accepted Accounting Principles (GAAP)

Stockholders can best be defined as which of the following?

investors who purchase an ownership in the business

Which of the following is likely not a type of not-for-profit entity?

local movie theater

Which of the following groups would have access to managerial accounting information?

managers

Which of the following is not true?

organizations share a common purpose or mission

stockholder

owner of stock, or shares, in a business

All of the following are examples of managerial accounting activities except ________.

preparing external financial statements in compliance with GAAP

Auditing

process of ensuring activities are carried out as intended or designed

Consulting

process of giving advice or guidance on financial and non financial impact of a course of action.

Accounting

process of organizing, analyzing, and communicating financial information that is used for decision-making

Governmental accounting

process of tracking the inflows and outflows of taxpayer funds using prescribed standards

managerial accounting

process that allows decision makers to set and evaluate business goals by determine what information they need to make a particular decision and how to analyze and communicate this information

Governmental entity

provides services to the general public (taxpayers)

Which of the following sell stock on an organized stock exchange such as the New York Stock Exchange?

publicly traded companies

Typical accounting tasks include all of the following tasks except ________.

purchasing direct materials

Cost Accounting

recording and tracking of costs in the manufacturing process

stakeholder

someone affected decisions made by a company; may include an investor, creditor, employee, manager, regulator, customer, supplier, and layperson

Governmental Accounting Standards Board (GASB)

source of generally accepted accounting principles (GAAP) used by state and local governments in the United States; is a price nongovernmental organization

Financial accounting information ________.

summarizes what has already occurred

nonprofit (not-for-profit) organization

tax exempt organizations that serve its community in a variety of areas

All of the following are sustainable methods businesses can use to raise capital (funding) except for ________.

tax refunds