Accounting Quiz

Which of the following is the most correct definition of accounting?

A system for providing quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions.

Which of the following financial statements reports a company's resources, obligations, and owner's equity?

Balance sheet

The initials CPA stand for

Certified Public Accountant

Which of the following is NOT a function of accounting?

Executing sales transactions for organizations

The current standard-setting board for accounting in the private sector is the

Financial Accounting Standards Board (FASB)

The initials GAAP stand for

Generally Accepted Accounting Principles

Which of the following financial statements reports the excess of a company's revenues over its expenses?

Income statement

Which of the following is the government agency that stipulates the rules and regulations that govern the collection of taxes in the United States?

Internal Revenue Service

The organization that develops worldwide accounting standards is the

International Accounting Standards Board (IASB)

Standards established by the International Accounting Standards Board are referred to as

International Financial Reporting Standards

The emphasis in financial accounting is on which of the following external user groups?

Investors and creditors

Which of the following is NOT true of the Financial Accounting Standards Board (FASB)?

It is a government agency

Which of the following is true about the double-entry system of bookkeeping?

It was developed in the 1300s−1400s in Italy.

Which of the following is NOT a service typically provided by large public accounting firms?

Making management decisions

Internal reports are generally used by

Management

The primary internal group that uses accounting information is

Management

Which of the following is NOT an external user of financial information?

Management

Which of the following is NOT a key component of the definition of accounting?

Qualitative

Which of the following financial statements reports the amount of cash collected and paid out by a company?

Statement of cash flows

Which of the following is NOT one of the three primary financial statements?

Statement of retained earnings

Which of the following is NOT typically true of accounting information?

The information relates to future time periods.

Which of the following is NOT a reason for the integration of worldwide accounting standards?

the theoretical necessity of a common set of accounting standards

Generally accepted accounting principles are

Developed by accounting rule makers