ACCOUNTING 101: CHAPTER 1 TEST BANKS QUESTIONS AND CORRECT ANSWERS ALREADY GRADED A+

ACCOUNTING 101: CHAPTER 1 TEST BANKS
QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+
Financial accounting information is - Answer –

- Designed to assist investors and creditors

- Used by managers and in income tax returns

- Called "general-purpose" accounting information



Financial statements may be prepared for - Answer -

- One year

- Less than one year



Generally accepted accounting principles - Answer -

- Originate from a combination of tradition, experience and official decree

- May change over time



The Sarbanes-Oxley Act of 2002 created: - Answer -.

The Public Company Accounting Oversight Board*



Which of the following would NOT be considered a user of financial information?
- Answer -

- A large pension fund

- A real estate investor

- Company management

, ACCOUNTING 101: CHAPTER 1 TEST BANKS
QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+



The field of accounting may best be described as: - Answer –

The art of interpreting, measuring, and describing economic activities*



The basic purpose of bookkeeping is to: - Answer –

Record the financial transactions of an economic entity*



Which of the following is NOT a characteristic of financial accounting? - Answer
–

The information is confidential and is intended for use only by company
management*



Financial statements are prepared: - Answer –

Primarily for the benefit of persons outside of the business organization*



It is the function of management accounting to perform the following activities,
except:

- Answer – Audited financial statements*



The basic purpose of an audit is to: - Answer –

Assure financial statements are in conformity with GAAP*