C 2. In what terms can accounting information be expressed? A. Units, percentages, and money B. Money, ratios, and text C. Money, percentages, and text D. Units, percentages, and text
A 3. Which of the following statements does not apply to accounting information? A. Accounting information meets the legitimate needs of external users. B. Accounting information is generated by only external activities. C. Accounting information communicates among parties transacting business with one another. D. Accounting information provides a basis for informed management decision making.
B 4. Which of the following groups requires accounting data with the broadest perspective? A. Entry-level managers B. First-level managers C. Middle-level managers D. Upper-level managers
D 5. Which of the following statements is not true? A. An accounting system deals primarily with economic events that affect an organization’s accounting equation. B. Some accounting events may mature into accounting transactions while others may not. C. Only accounting events that have matured into accounting transactions must be captured and reported by the accounting system.
D. C 6.
Most accounting transactions result from an organization’s day-to-day operations.
From what do accounting transactions result? A. Both external and internal activities B. External activities C. Internal activities D. Neither external nor internal activities
A 7. Which of the following statements about a manual accounting system is not correct? A. Very little data beyond the basic elements are included. B. Data are stored in only one location. C. Errors and inconsistencies are common. D. Data are processed for external reporting.
B 8. For decision-making purposes, managers require data from which source(s) and in which terms? A. Internal and external sources in only monetary terms B. Internal sources in non-monetary terms and external sources in monetary terms C. Internal sources in non-monetary terms and external sources in monetary terms D. Internal and external sources in both monetary and non-monetary terms
D 9. Which of the following best describes a manual accounting system? A. Slow and prone to error B. Limited in the volume of data it can process C. Fast and accurate D. A and C, but not B E. A and B, but not C
E 10. What essential functions are performed by computer hardware? A. Input, processing, output, and instruction of data B. Input, storage, and instruction of data, and decision making C. Input, processing, storage, and output of data D. Input, storage, and output of data and decision making
C 11. What are the roles of people in computerized accounting systems? A. To monitor the processing of data and to interpret data B. To manufacture hardware, write software, and maintain the accounting system C. To supervise and control the accounting function D. A and B, but not C E. A, B, and C
E 12. Which of the following statements is not true? A. Trustworthy accounting information and reliable computer equipment can prevent the failure of an organization, even if incompetent and dishonest people carry out the accounting function. B. A good accounting system may not guarantee an organization’s success, but a bad one can destroy an organization. C. The difference between good and bad accounting systems lies in the way they are developed, operated, and controlled. D. An accounting system is expected to carry out its tasks without the need for upper management’s day-to-day concern.
A 13. Who are the users of accounting systems? A. Financial accountants, managerial accountants, and system developers B. Financial accountants, managerial accountants, system...