Accounting Quiz Chapter 1
Which of the following is typically required for entry level positions in the accounting profession? Certified Public Accountant (CPA) Bachelor's degree Master's degree Certified Management Accountant (CMA)
Bachelor's degree
Most states require 150 semester hours of college credit for which profession certification?
Certified public accountant (CPA)
The primary purpose of what type of business is to serve a particular need in the community?
Not for profit entity
Which of the following is not considered a stakeholder of an organization? lenders creditors employees a business in another industry
a business in another industry
Accounting is sometimes called the "language of ___"
business
The accounting information of a privately held company is generally available to all of the following except for? creditors and lenders governmental agencies investors competitors
competitors
Which of the following is not an example of a retailer? car dealership electronics store grocery store computer manufacturer
computer manufacturer
External users of financial accounting information include all of the following except? governmental agencies such as the IRS employees of a business potential investors lenders such as bankers
employees of a business
Which of the following skills/attributes is not a primary skill for accountants to possess? extensive computer program background written communication verbal communication analytical thinking
extensive computer program background
A governmental agency can best be described by which of the following statements? produces goods for sale to the public has a primary purpose of making a profit has regular shareholder meetings has a primary purpose of using taxpayer funds to provide services
has a primary purpose of using taxpayer funds to provide services
Stockholders can be best defined as which of the following? investors who lend money to a business for a short period of time analysts who rate the financial performance of the business investors who purchase an ownership in the business investors who lend money to a business for a long period of time
investors who purchase an ownership in the business
Which of the following is likely not a type of not-for-profit entity? public library university community foundation local movie theater
local movie theater
Which of the following groups would have access to managerial accounting information? competitors of the business investors bankers managers
managers
Which of the following is not true? organizations have inflows and outflows of resources organizations share a common purpose or mission organizations need accounting information organizations add value to society
organizations share a common purpose or mission
All of the following are examples of managerial accounting activities except making equipment repair or replacement decisions preparing external financial statements in compliance with GAAP deciding whether or not to use automation
preparing external financial statements in compliance with GAAP
What type of organization primarily offers tax compliance, auditing, and a consulting services? public accounting firms universities governmental entities corporations
public accounting firms
Which of the following sell stock on an organized stock exchange such as the New York Stock Exchange? not for profit businesses governmental agencies privately held companies publicly traded companies
publicly traded companies
Typical accounting tasks include all of the following tasks except tax compliance and planning consulting auditing purchasing direct materials
purchasing direct materials
Financial accounting information summarizes what has already occurred should be prepared differently by each company should be incomplete in order to confuse competitors provides investors guarantees about the future
summarizes what has already occurred
All of the following are sustainable methods businesses can use to raise capital (funding) except for tax refunds borrowing from leaders profitable operations selling ownership shares
tax refunds
