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
