D196 Module 1 & 2 Practise Questions and Answers
Accounting plays a vital role Identify the issue 3 multiple choice options
in the decision-making process.
Which action is the first step in
the decision-making process?
The money that a company needs Investors, creditors, and retained business 3 multiple choice options
to buy its land, pay its earnings
employees, and buy its supplies
is called capital. What are the
potential sources of capital for a
business?
Which primary area of Management accounting 3 multiple choice options
accounting generates
reports for internal users?
Which group uses financial Lenders 3 multiple choice options
information to evaluate whether
a company will be able to repay
a loan?
Which of the primary financial Balance sheet 3 multiple choice options
statements reports the
resources, obligations, and
owner's equity of a company?
What is the role of the IASB in Establish international accounting standards 3 multiple choice options
regulating accounting
standards?
What group of people make up the People from a variety of business-related 3 multiple choice options
FASB? backgrounds
Private-sector organization that establishes standards for state and
What is the role of the GASB in
local governments
setting accounting standards?
3 multiple choice options
In what way do accountants The value of accounting info depends on user confidence in its reliability
have an economic incentive to
conduct themselves ethically? 3 multiple choice options
, How can an accountant Flexibility exists in assumptions underlying financial 3 multiple choice options
intentionally deceive users while statements
still technically being in
compliance with GAAP?
Your boss receives a letter The company has not filed its taxes in accordance 3 multiple choice options
from the IRS about accounting with the law
standards. What could the
problem be?
Anika wants to check a tech Financial reports 3 multiple choice options
company's past financial
performance and cash
management before investing.
What info would provide this?
Alliah Company just released Government agencies 3 multiple choice options
public accounting data. Who
will monitor it to ensure
sufficient info for investors?
A new product line manager Analysis 3 multiple choice options
asks for past financial
performance of the product line.
Which role of accounting is
this?
If accountants are found guilty of Implement professional sanctions 3 multiple choice options
unethical conduct, what could
the AICPA do?
What is the correct summary Analyze, Record, Summarize, Prepare 3 multiple choice options
sequence in the accounting
cycle?
What is the purpose of business Confirm that a transaction has occurred 3 multiple choice options
documents in the accounting
cycle?
What is the purpose of the Turn transactions into financial statements for 3 multiple choice options
financial accounting cycle? decision makers
What is a transaction in accounting? Exchange between two parties of something of 3 multiple choice options
value
In the context of the financial A specific record that categorizes similar types of 3 multiple choice options
accounting cycle, what is the transactions
definition of an account?
What is an arm's-length transaction? An exchange between independent parties 3 multiple choice options
Which event represents a Sale of a product for cash or on account 3 multiple choice options
Accounting plays a vital role Identify the issue 3 multiple choice options
in the decision-making process.
Which action is the first step in
the decision-making process?
The money that a company needs Investors, creditors, and retained business 3 multiple choice options
to buy its land, pay its earnings
employees, and buy its supplies
is called capital. What are the
potential sources of capital for a
business?
Which primary area of Management accounting 3 multiple choice options
accounting generates
reports for internal users?
Which group uses financial Lenders 3 multiple choice options
information to evaluate whether
a company will be able to repay
a loan?
Which of the primary financial Balance sheet 3 multiple choice options
statements reports the
resources, obligations, and
owner's equity of a company?
What is the role of the IASB in Establish international accounting standards 3 multiple choice options
regulating accounting
standards?
What group of people make up the People from a variety of business-related 3 multiple choice options
FASB? backgrounds
Private-sector organization that establishes standards for state and
What is the role of the GASB in
local governments
setting accounting standards?
3 multiple choice options
In what way do accountants The value of accounting info depends on user confidence in its reliability
have an economic incentive to
conduct themselves ethically? 3 multiple choice options
, How can an accountant Flexibility exists in assumptions underlying financial 3 multiple choice options
intentionally deceive users while statements
still technically being in
compliance with GAAP?
Your boss receives a letter The company has not filed its taxes in accordance 3 multiple choice options
from the IRS about accounting with the law
standards. What could the
problem be?
Anika wants to check a tech Financial reports 3 multiple choice options
company's past financial
performance and cash
management before investing.
What info would provide this?
Alliah Company just released Government agencies 3 multiple choice options
public accounting data. Who
will monitor it to ensure
sufficient info for investors?
A new product line manager Analysis 3 multiple choice options
asks for past financial
performance of the product line.
Which role of accounting is
this?
If accountants are found guilty of Implement professional sanctions 3 multiple choice options
unethical conduct, what could
the AICPA do?
What is the correct summary Analyze, Record, Summarize, Prepare 3 multiple choice options
sequence in the accounting
cycle?
What is the purpose of business Confirm that a transaction has occurred 3 multiple choice options
documents in the accounting
cycle?
What is the purpose of the Turn transactions into financial statements for 3 multiple choice options
financial accounting cycle? decision makers
What is a transaction in accounting? Exchange between two parties of something of 3 multiple choice options
value
In the context of the financial A specific record that categorizes similar types of 3 multiple choice options
accounting cycle, what is the transactions
definition of an account?
What is an arm's-length transaction? An exchange between independent parties 3 multiple choice options
Which event represents a Sale of a product for cash or on account 3 multiple choice options
