Questions and Answers to Section Reviews

Questions and Answers to Section Reviews

Chapter 1: Section 1 Review

QUESTIONS

1. The names of three accounting jobs include all but:

a.  logistics manager.b.  accountant.c.  bookkeeper.d.  accounts payable clerk.

Answer: A

Difficulty: 1 Easy

Learning Objective: 01-02

Topic: What is Accounting?

Blooms: Remember

AACSB: Analytical Thinking

AICPA: BB Industry

AICPA: FN Measurement

2. Accounting is called:

a.  the language of economics.b.  the language of finance.c.  the language of business.d.  the language of commerce.

Answer: C

Difficulty: 1 Easy

Learning Objective: 01-01

Topic: What is Accounting?

Blooms: Remember

AACSB: Analytical Thinking

AICPA: BB Industry

AICPA: FN Measurement

3. Financial statements are:

a.  accumulated financial data summarized in periodic reports.b.  accumulated transactions of the firm’s sales activities.c.  a summary of records and procedures that make up the accounting system.d.  a summarized description of a firm's accounting system.(College Accounting A Contemporary Approach, 6e David Haddock, John Price, Michael Farina) (Solution Manual, For Complete File, Download link at the end of this File) 1 / 4

Answer: A

Difficulty: 1 Easy

Learning Objective: 01-01

Topic: What is Accounting?

Blooms: Remember

AACSB: Analytical Thinking

AICPA: BB Industry

AICPA: FN Reporting

4.  The organization that has the final say on financial accounting issues faced by publicly

owned corporations is the:

      a.  Federal Trade Commission.      b.  Securities and Exchange Commission.      c.  Internal Revenue Service.      d.  U.S. Treasury.

Answer: B

Difficulty: 1 Easy

Learning Objective: 01-03

Topic: What is Accounting?

Blooms: Remember

AACSB: Analytical Thinking

AICPA: BB Industry

AICPA: FN Measurement

5.   As the owner of a small business, you have decided to apply for a loan to expand your locations.  Information that you most likely will need to provide to the lender include all but:       a.  current sales and expense figures.      b.  projected sales and expense figures.      c.  the cost of the expansion.      d.  the average value of homes in your neighborhood.

Answer: D

Difficulty: 2 Medium

Learning Objective: 01-03

Topic: What is Accounting?

Blooms: Understand

AACSB: Analytical Thinking

AICPA: BB Industry

AICPA: FN Reporting

6.  One requirement for becoming a CPA is to pass the:

     a.  Final CPA Examination. 2 / 4

     b.  SEC Accounting Examination.     c.  Uniform CPA Exam.     d.  State Board Examination.

Answer: C

Difficulty: 1 Easy

Learning Objective: 01-02

Topic: What is Accounting?

Blooms: Remember

AACSB: Analytical Thinking

AICPA: BB Industry

AICPA: FN Measurement

7.  The CPA designation stands for:

     a.  Certified Public Analyst.     b.  Certified Public Appraiser.     c.  Certified Public Accountant.     d.  Certified Public Associate.

Answer: C

Difficulty: 1 Easy

Learning Objective: 01-02

Topic: What is Accounting?

Blooms: Remember

AACSB: Analytical Thinking

AICPA: BB Industry

AICPA: FN Measurement

8.  The Certified Bookkeeper exam includes all the parts below except:

      a.  Business Law.      b.  Adjustments and Error Corrections.      c.  Inventory.      d.  Payroll and Depreciation.

Answer: A

Difficulty: 1 Easy

Learning Objective: 01-02

Topic: What is Accounting?

Blooms: Remember

AACSB: Analytical Thinking

AICPA: BB Industry

AICPA: FN Measurement 3 / 4

9. To become a Certified Bookkeeper, one must meet all requirements below except:      a.  Pass the national certified bookkeeper exam.     b.  Sign a code of ethics.     c.  Pass a criminal background check.     d.  Submit evidence that you satisfy the experience requirements for the designation.

Answer: C

Difficulty: 1 Easy

Learning Objective: 01-02

Topic: What is Accounting?

Blooms: Remember

AACSB: Analytical Thinking

AICPA: BB Industry

AICPA: FN Measurement

10.  All of the following are users of accounting information except:

       a.  owners and managers.       b.  banks and suppliers.       c. search engines on a website.       d.  tax authorities and regulatory agencies.

Answer: C

Difficulty: 1 Easy

Learning Objective: 01-03

Topic: What is Accounting?

Blooms: Remember

AACSB: Analytical Thinking

AICPA: BB Industry

AICPA: FN Measurement

11.  All of the following are goals of internal control except:

        a.  policies and procedures to safeguard assets.        b.  ensure reliability of accounting data.        c.  fraud prevention.        d.  encourage noncompliance with management policies and applicable laws.

Answer: D

Difficulty: 1 Easy

Learning Objective: 01-03

Topic: What is Accounting?

Blooms: Remember

AACSB: Analytical Thinking

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