Multiple Choice Questions

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Multiple Choice Questions

• The process of identifying, measuring and communicating economic information to permit

informed judgments and decisions by users of the information is called:

• Accounting

• Bookkeeping

• Making journal entries

• Preparing financial statements

• Which of the following phrases most closely relates to bookkeeping?

• Identifying and measuring economic information

• Communicating economic information

• Permitting informed judgments by users

• Permitting informed decisions by users

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• Which of the following most clearly differentiates accounting and bookkeeping?

• Bookkeeping always involves information technology; accounting does not.

• Accounting always involves information technology; bookkeeping does not.

• Bookkeeping is the part of accounting most focused on rules and procedures.

• A college degree is required for bookkeeping, but not for accounting.

• Which of the following statements about accounting and bookkeeping is most true?

• The FASB Conceptual Framework is relevant in accounting, but not in bookkeeping.

• The FASB Conceptual Framework is relevant in bookkeeping, but not in accounting.

• As an element of the AIS, internal controls are irrelevant to bookkeeping.

• As an element of the AIS, outputs are relevant to accounting.

• Communicating information to external decision makers is accomplished through ___ as part of the

process of ___.

• Financial statements; bookkeeping

• Financial statements; accounting

• Journal entries; bookkeeping

• Journal entries; accounting

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• Plant assets, such as equipment, are reported on financial statements at their book value, thus

exemplifying:

• The measuring process in accounting only.

• The measuring process in bookkeeping only.

• The measuring process in both accounting and bookkeeping.

• Informed judgments as part of the definition of bookkeeping.

• An accountant received a stack of sales invoices. Which of the following statements is most true?

• The stack of sales invoices can help the accountant identify economic information, which is part

of both accounting and bookkeeping.

• The accountant is a "user of information" as the phrase is used in the definition of bookkeeping

only.

• The accountant is a "user of information" as the phrase is used in the definition of accounting

only.

• The stack of sales invoices can help the accountant identify economic information, which is part

of bookkeeping, but not accounting.

• Which of the following best pairs an element of bookkeeping with an example of the element?

• Identifying economic information, reading a balance sheet

• Identifying economic information, preparing a balance sheet

• Measuring economic information, reading a balance sheet

• Measuring economic information, preparing a balance sheet

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• The concept of bookkeeping includes: (i) distinguishing relevant from irrelevant information, (ii)

calculating amounts to record in the AIS, (iii) reporting financial results.

• I and II only.

• I and III only.

• II and III only.

• I, II and III.

• The definition of accounting has three principal elements. Which of the following is not one of

them?

• Distinguishing relevant from irrelevant information

• Calculating amounts to record in the AIS

• Reporting financial results

• Using the information to make informed judgments

• Which of the following steps in the accounting cycle occurs first?

• Analyze transactions.

• Close the temporary accounts to retained earnings.

• Prepare an unadjusted trial balance.

• Record the transactions in a journal.