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Test Bank Financial Accounting: IFRS Edition 3rd Edition by Earl Stice;Steve Albrecht;Monte Swain;Audrey Hsu. Isbn.9789814962582. $24.99
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Test Bank Financial Accounting: IFRS Edition 3rd Edition by Earl Stice;Steve Albrecht;Monte Swain;Audrey Hsu. Isbn.9789814962582.
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Test Bank Financial Accounting: IFRS Edition 3rd Edition by Earl Stice;Steve Albrecht;Monte Swain;Audrey Hsu. Isbn.9789814962582. Financial Accounting, IFRS Edition, Third Edition Test Bank. Financial Accounting 3e Test Bank. PART I: FINANCIAL REPORTING AND THE ACCOUNTING CYCLE ; PART II: OPERATI...

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  • April 27, 2024
  • 510
  • 2023/2024
  • Exam (elaborations)
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TEST BANK Financial Accounting: IFRS Edition 3rd Edition Earl Stice

Chapter 01: Accounting Information: Users and Uses

MULTIPLE CHOICE

1. Which of the following is NOT typically true of accounting information?
a. The information is quantitative in nature.
b. The information relates to future time periods.
c. The information relates to specific accounting entities.
d. The information is primarily financial in nature.
ANS: B PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

2. Which of the following is true about the double-entry system of bookkeeping?
a. It was developed in the 1300s−1400s in France.
b. It was developed in the 1800s in Italy.
c. It was developed in the 1300s−1400s in Italy.
d. It was developed in the 1800s in the United States.
ANS: C PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

3. Businesses use accounting systems to
a. Analyze transactions
b. Handle routine bookkeeping tasks
c. Evaluate the performance and health of the business
d. All of these are correct
ANS: D PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

4. Which of the following is the most correct definition of accounting?
a. A system for providing quantitative information, primarily financial in nature, about
economic entities that is intended to be useful in making economic decisions.
b. An entity without a profit objective, oriented toward providing services efficiently and
effectively.
c. The preservation of a systematic, quantitative record of an activity.
d. The procedures and processes used by a company to analyze transactions and handle
routine bookkeeping tasks.
ANS: A PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

5. Which of the following is NOT a function of accounting?
a. Accumulating economic information about organizations
b. Measuring economic information about organizations
c. Executing sales transactions for organizations
d. Communicating economic information about organizations
ANS: C PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

, 6. Which of the following is NOT a key component of the definition of accounting?
a. Financial
b. Qualitative
c. Useful
d. Decision-oriented
ANS: B PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

7. Which of the following is NOT a step in the decision making process?
a. Identify the issue.
b. Identify alternatives.
c. Select the option that will result in the greatest financial increase.
d. Gather information.
ANS: C PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Decision Modeling

8. Accounting can be best described as a
a. Manufacturing activity
b. Service activity
c. Retailing activity
d. All of these are correct
ANS: B PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

9. Which of the following is NOT a typical source of monetary resources used by business enterprise as
capital?
a. Investors
b. Creditors
c. Business earnings
d. Employees
ANS: D PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

10. Accountants typically perform what action related to the financial results of business activities?
a. Report the results of business activities
b. Advise on how to structure business activities
c. Both report the results of and advise on how to structure business activities
d. None of these are correct
ANS: C PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Reporting

11. The accounting cycle includes all of the following, EXCEPT:
a. Recording
b. Summarizing
c. Analyzing
d. Interpreting
ANS: D PTS: 1 DIF: Easy OBJ: 1.1
NAT: AACSB Reflective Thinking | AICPA FN Measurement

,12. The emphasis in financial accounting is on which of the following external user groups?
a. Management
b. Certified public accountants
c. Investors and creditors
d. Educators
ANS: C PTS: 1 DIF: Easy OBJ: 1.2
NAT: AACSB Reflective Thinking | AICPA FN Reporting

13. The primary internal group that uses accounting information is
a. Government agencies
b. Investors
c. Management
d. Competitors
ANS: C PTS: 1 DIF: Easy OBJ: 1.2
NAT: AACSB Reflective Thinking | AICPA FN Reporting

14. Internal reports are generally used by
a. Management
b. Suppliers
c. Lenders
d. Employees
ANS: A PTS: 1 DIF: Easy OBJ: 1.2
NAT: AACSB Reflective Thinking | AICPA FN Reporting

15. Which of the following is NOT an important aspect of management accounting?
a. Planning
b. Product design
c. Implementing plans
d. Controlling costs
ANS: B PTS: 1 DIF: Easy OBJ: 1.2
NAT: AACSB Reflective Thinking | AICPA FN Reporting

16. The area of accounting that is concerned with providing information for external users is referred to as
a. Financial accounting
b. Governmental accounting
c. Management accounting
d. Not-for-profit accounting
ANS: A PTS: 1 DIF: Easy OBJ: 1.2
NAT: AACSB Reflective Thinking | AICPA FN Reporting

17. Which of the following is NOT one of the four primary financial statements?
a. Statement of cash flows
b. Statement of comprehensive income
c. Statement of retained earnings
d. Balance sheet
ANS: C PTS: 1 DIF: Easy OBJ: 1.2
NAT: AACSB Reflective Thinking | AICPA FN Reporting

, 18. Which of the following financial statements reports a company's resources, obligations, and owner's
equity?
a. Balance sheet
b. Statement of comprehensive income
c. Statement of changes in equity
d. Statement of cash flows
ANS: A PTS: 1 DIF: Easy OBJ: 1.2
NAT: AACSB Reflective Thinking | AICPA FN Reporting

19. Which of the following financial statements reports the excess of a company's revenues over its
expenses?
a. Balance sheet
b. Statement of comprehensive income
c. Statement of changes in equity
d. Statement of cash flows
ANS: B PTS: 1 DIF: Easy OBJ: 1.2
NAT: AACSB Reflective Thinking | AICPA FN Reporting

20. Which of the following financial statements reports the amount of cash collected and paid out by a
company?
a. Balance sheet
b. Statement of comprehensive income
c. Statement of changes in equity
d. Statement of cash flows
ANS: D PTS: 1 DIF: Easy OBJ: 1.2
NAT: AACSB Reflective Thinking | AICPA FN Reporting

21. Which of the following information is provided primarily and sometimes exclusively to the manage-
ment of a company?
a. 10K report
b. Financial accounting
c. Government accounting
d. Management accounting

ANS: D PTS: 1 DIF: Easy OBJ: 1.2
NAT: AACSB Reflective Thinking | AICPA FN Measurement

22. Under which of the following is PCAOB created?
a. Securities Act
b. Securities and Exchange Act
c. Sarbanes-Oxley Act
d. Dodd-Frank Act

ANS: C PTS: 1 DIF: Easy OBJ: 1.3
NAT: AACSB Reflective Thinking | AICPA FN Measurement

23. Which of the following statements about the Securities and Exchange Commission (SEC) is not true?
a. SEC has been setting accounting standards since the first day of its establishment
b. SEC never sets accounting standards
c. SEC delegates accounting standard-setting to private organizations
d. SEC in most cases is in agreement with FASB

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