1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
,1. Which of the following best describes the primary purpose of
financial accounting?
- A. Conducting market research
- B. Providing financial information to external stakeholders for
decision-making
- C. Developing new software applications
- D. Managing daily business operations
- ANS: B
- Rationale: The primary purpose of financial accounting is to
provide financial information to external stakeholders, such as
investors, creditors, and regulators, to aid in decision-making.
2. What is the primary function of the balance sheet in financial
accounting?
- A. To manage daily business operations
- B. To provide a snapshot of an organization's financial
position at a specific point in time
- C. To conduct market research
- D. To develop new software applications
- ANS: B
, - Rationale: The balance sheet provides a snapshot of an
organization's financial position at a specific point in time,
showing its assets, liabilities, and equity.
Fill-in-the-Blank Questions
3. The __________ principle requires that expenses be matched
with revenues in the period in which they are incurred.
- ANS: matching
- Rationale: The matching principle requires that expenses be
matched with revenues in the period in which they are incurred,
ensuring accurate financial reporting.
4. In financial accounting, __________ refers to the process of
allocating indirect costs to different cost objects.
- ANS: cost allocation
- Rationale: Cost allocation refers to the process of assigning
indirect costs, such as overhead, to different cost objects, such as
products or departments.
True/False Questions
5. The primary focus of financial accounting is to provide
information for internal decision-making.
- ANS: False
, - Rationale: The primary focus of financial accounting is to
provide information for external decision-making, while
managerial accounting focuses on internal decision-making.
6. Financial accounting reports are typically prepared in
accordance with Generally Accepted Accounting Principles
(GAAP).
- ANS: True
- Rationale: Financial accounting reports are prepared in
accordance with GAAP to ensure consistency, reliability, and
comparability of financial information.
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