ACCT MISC CB Test Bank Exam Questions
with Answers., Exams
General-purpose financial statements are the product of - CORRECT
ANSWER>>financial accounting
Which of the following is not a user of financial reports? - CORRECT
ANSWER>>Creditors, government agencies, and unions are all users
All the following are differences between financial and managerial
accounting in how accounting information is used except to - CORRECT
ANSWER>>Plan and control company's operations, decide whether to
invest in the company, and evaluate borrowing capacity to determine the
extent of a loan to grant are all correct
The process of identifying, measuring, analyzing, and communicating
financial information needed by management to plan, evaluate, and control
an organization's operations is called - CORRECT ANSWER>>managerial
accounting
How does accounting help the capital allocation process attract investment
capital? - CORRECT ANSWER>>By providing timely, relevant information
Which of the following helps in determining whether a business thrives? -
CORRECT ANSWER>>Markets, free enterprise, and competition all are
correct
Financial statements in the early 2000s provide information related to -
CORRECT ANSWER>>hard assets (inventory and plant assets)
Which of the following is not a major challenge facing the accounting
profession? - CORRECT ANSWER>>Accounting for hard assets
, What is the objective of financial reporting? - CORRECT
ANSWER>>Provide information about the reporting entity that is useful to
present and potential equity investors, lenders, and other creditors.
Primary users for general-purpose financial statements include -
CORRECT ANSWER>>both creditors and investors
Which of the following will be of interest to investors in decision-making? -
CORRECT ANSWER>>Both assessing the company's ability to generate
net cash inflows and assessing management's ability to protect and
enhance the capital provider's investments
Accrual accounting is used because - CORRECT ANSWER>>it provides a
better indication of a company's ability to generate cash flows than the
cash basis
Which of the following is a requirement for an accounting principle to be
called "generally accepted"? - CORRECT ANSWER>>An authoritative
accounting rule-making body has established it and it has been accepted
because of its universal application
A common set of accounting standards and procedures are called -
CORRECT ANSWER>>generally accepted accounting principles
What is the relationship between the Securities and Exchange Commission
and accounting standard setting in the United States? - CORRECT
ANSWER>>The SEC has a mandate to establish accounting standards for
enterprises under its jurisdiction
What is the due process in the context of standard setting at the FASB? -
CORRECT ANSWER>>The FASB operates in full view of the public, public
hearings are held on proposed accounting standards, and interested
parties can make their views known are all correct
with Answers., Exams
General-purpose financial statements are the product of - CORRECT
ANSWER>>financial accounting
Which of the following is not a user of financial reports? - CORRECT
ANSWER>>Creditors, government agencies, and unions are all users
All the following are differences between financial and managerial
accounting in how accounting information is used except to - CORRECT
ANSWER>>Plan and control company's operations, decide whether to
invest in the company, and evaluate borrowing capacity to determine the
extent of a loan to grant are all correct
The process of identifying, measuring, analyzing, and communicating
financial information needed by management to plan, evaluate, and control
an organization's operations is called - CORRECT ANSWER>>managerial
accounting
How does accounting help the capital allocation process attract investment
capital? - CORRECT ANSWER>>By providing timely, relevant information
Which of the following helps in determining whether a business thrives? -
CORRECT ANSWER>>Markets, free enterprise, and competition all are
correct
Financial statements in the early 2000s provide information related to -
CORRECT ANSWER>>hard assets (inventory and plant assets)
Which of the following is not a major challenge facing the accounting
profession? - CORRECT ANSWER>>Accounting for hard assets
, What is the objective of financial reporting? - CORRECT
ANSWER>>Provide information about the reporting entity that is useful to
present and potential equity investors, lenders, and other creditors.
Primary users for general-purpose financial statements include -
CORRECT ANSWER>>both creditors and investors
Which of the following will be of interest to investors in decision-making? -
CORRECT ANSWER>>Both assessing the company's ability to generate
net cash inflows and assessing management's ability to protect and
enhance the capital provider's investments
Accrual accounting is used because - CORRECT ANSWER>>it provides a
better indication of a company's ability to generate cash flows than the
cash basis
Which of the following is a requirement for an accounting principle to be
called "generally accepted"? - CORRECT ANSWER>>An authoritative
accounting rule-making body has established it and it has been accepted
because of its universal application
A common set of accounting standards and procedures are called -
CORRECT ANSWER>>generally accepted accounting principles
What is the relationship between the Securities and Exchange Commission
and accounting standard setting in the United States? - CORRECT
ANSWER>>The SEC has a mandate to establish accounting standards for
enterprises under its jurisdiction
What is the due process in the context of standard setting at the FASB? -
CORRECT ANSWER>>The FASB operates in full view of the public, public
hearings are held on proposed accounting standards, and interested
parties can make their views known are all correct
