International Financial Reporting Standards and Accounting Principles

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21.General-purpose financial statements are the product of accounting.
b.managerial accounting.
c.both financial and managerial accounting.
d.neither financial nor managerial accounting.

22.Users of financial reports include all of the following except a.creditors.
b.government agencies.
d.All of these are users.

23.The financial statements most frequently provided include all of the following except the a.balance sheet.
b.income statement.
c.statement of cash flows.
d.statement of retained earnings.

24.The information provided by financial reporting pertains to a.individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers. industries, rather than to individual enterprises or an economy as a whole or to members of society as consumers. c.individual business enterprises, industries, and an economy as a whole, rather than to members of society as consumers. economy as a whole and to members of society as consumers, rather than to individual enterprises or industries.

25.All the following are differences between financial and managerial accounting in how accounting information is used except to a.plan and control company's operations.
b.decide whether to invest in the company.
c.evaluate borrowing capacity to determine the extent of a loan to grant. d.All the above.

26.Which of the following represents a form of communication through financial reporting but not through financial statements? a.Balance sheet.
b.President's letter.
c.Income statement.
d.Notes to financial statements.

P27.The process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organization’s operations is called accounting.

b.managerial accounting. accounting.

28.How does accounting help the capital allocation process attract investment capital? a.Provides timely, relevant information.
b.Encourages innovation.
c.Promotes productivity.
d.a and b above.

29.Whether a business is successful and thrives is determined by enterprise.
d.all of these.

30.An effective capital allocation process
a.promotes productivity.
b.encourages innovation.
c.provides an efficient market for buying and selling securities. d.all of these.

31.Financial statements in the early 2000s provide information related to a.nonfinancial measurements.
b.forward-looking data.
c.hard assets (inventory and plant assets).
d.none of these.

32.Which of the following is not a major challenge facing the accounting profession? a.Nonfinancial measurements.
c.Accounting for hard assets.
d.Forward-looking information.

33.What is a major objective of financial reporting? a.Provide information that is useful to management in making decisions. b.Provide information that clearly portray nonfinancial transactions. c.Provide information that is useful to assess the amounts, timing, and uncertainty of perspective cash receipts. d.Provide information that excludes claims to the resources.

34.What is a major objective of financial reporting? a.Provide information that is useful to the Internal Revenue Service in determining the amount of federal income taxes payable. b.Provide information that is useful in assessing the amounts and timing of revenue. c.Provide information that is comprehensible only by...
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