The correct answers are in bold text.
1) Which of the following is an external user of accounting information? a.Managers b.Labor unions c.Finance directors d.Company officers
2) The accounting process is correctly sequenced as A.communication, recording, identification.b identification, communication, recording.c.recording, communication, identification.d.identification, recording, communication.
3) Communication of economic events is the part of the accounting process that involves a.recording and classifying information.b.identifying economic events.C.quantifying transactions into dollars and cents. D.preparing accounting reports.
4) The body of theory underlying accounting is not based on a.definitions.b.physical laws of nature.C.concepts.D.principles.
6) The private sector organization involved in developing accounting principles is the a. Financial Auditors' Standards Body. b.Feasible Accounting Standards Body.c.Financial Accounting Studies Board.d.Financial Accounting Standards Board.
7) All of the financial statements are for a period of time except the A.statement of cash flows.B.income statement.C.retained earnings.D.balance sheet.
8) After a business transaction has been analyzed and entered in the book of original entry, the next step in the recording process is to transfer the information to A.financial statements. B.the company's bank.C.stockholders’ equity. D.ledger accounts.
9) Auditing is a. conducted by the Securities and Exchange Commission to ensure that registered financial statements are presented fairly.b.the examination of financial statements by a CPA in order to express an opinion on their fairness.c.a part of accounting that involves only recording of economic events.d.an area of accounting that involves such activities as cost accounting, budgeting, and accounting information systems.
10) In recording an accounting transaction in a double-entry system A.there must only be two accounts affected by any...
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