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