Which of the following is the most correct definition of accounting(answer) A system for providing quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions
What is NOT typically true of accounting information(answer) The information relates to future time periods.
Which is NOT a key component of the definition of accounting(answer) Qualitative
What is true about the double-entry system of bookkeeping(answer) It was devel- oped in the 1300s 1400s in Italy.
Businesses use accounting systems to: Analyze transactions; Handle routine bookkeeping tasks; Evaluate performance and health of the business.
What is not a function of accounting(answer) Executing sales transactions for organizations
What is NOT one of the three primary financial statements(answer) Statement of retained earnings
Generally accepted accounting principles are: Developed by accounting rule makers
The initials GAAP stand for: Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the: Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish accounting standards for publicly held companies(answer) Securities and Exchange Commission (SEC)
Which is NOT a service typically provided by large public accounting firms(answer) Making management decisions
The organization that develops worldwide accounting standards is the: – International Accounting Standards Board (IASB)
The initials CPA stand for: Certified Public Accountant
Which of the following financial statements reports a company’s resources, obligations, and owner’s equity(answer) Balance sheet
Which of the following financial statements reports the excess of a company’s revenues over its expenses(answer) Income statement
Which of the following financial statements reports the amount of cash collected and paid out by a company(answer) Statement of cash flows