.Which of the following entities would not require accounting information pertaining to their economic

Ch 01 1 .Which of the following entities would not require accounting information pertaining to their economic activ ities?

• So

cial clubs.

• No

t-for-profit entities.

• State

governments.

• All

of the above require accounting information.

• No

ne of the above requires accounting information.2 . Which of the following is not an objective of financial reporting described in FASB Concepts Statement No . 1?A.To provide information about how management of an enterprise has discharged its stewardship responsibility to owners.

• To

measure the current market value of the business enterprise.

• To

provide information so potential investors or creditors can make their own predictions of future earn ings.

• To

focus primarily on information about earnings and its components.

• All of

the above are objectives of financial reporting.3 . Which of the following statements about the Financial Accounting Standards Board is correct?

• Th

e FASB is an agency of the Federal government.

• The FASB

has the authority to fine a noncompliant firm.

• The

FASB follows a due process procedure that permits input from interested parties before a standard is issued.

• Th

e FASB is controlled by the American Institute of CPA's.

• No

ne of the above statements is correct.4

.Major classifications of accounting activity would not include:

• fin

ancial accounting, internal auditing, public accounting.

• in

ternal auditing, governmental accounting, managerial accounting.

• fin

ancial accounting, national accounting, cost accounting.

• auditin

g, income tax accounting, governmental accounting.5 .Which of the following is not an example of a decision or informed judgment that a potential investor wo uld make from accounting information?

• Fu

ture profitability based on past profitability.

• Pro

bability of success of a new product development.

• A forecast

of dividends.

• Assessmen

t of risk that a company may have more debt than it can repay if the economy enters a recessio n.6 .Which of the following is not an example of a decision or informed judgment that a potential employee co uld make from accounting information?

• Personnel turnover statistics (i.e., hiring and termin

ations).

• Pro

bability of the company's ability to make profit sharing plan contributions in the future.

• Assessmen

t of the risk that the company may become bankrupt in the near future.

• Th

e extent of the company's commitment to a research program.Accounting What the Numbers Mean 9e David Marshall Wayne McManus Daniel Viele (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter 1 / 4

7.Which of the following is qualified to express an auditor's opinion about an entity's financial statements?   A. A Comptroller.B. A Certified Management Accountant.C. A Certified Internal Auditor.D. A Certified Public Accountant.E. None of the above.  8.Which classification of accounting is most concerned with the use of economic and financial information to plan and control many of the activities of the entity?   A. Financial accounting.B. Auditing-Public accounting.C. Managerial accounting.D. Income tax accounting. 

9.An unqualified auditors' opinion about an entity's financial statements:  

A. is a clean bill of health.B. means that all of the entity's transactions during the audited period were checked out.C.  guarantees that the entity was not involved in or the victim of any fraudulent activities during the audited period.D. states that they are presented in conformance with generally accepted accounting principles.  10.Cost accounting is a subset of which of the following?   A. Internal auditing.B. Public auditing.C. Cost analysis.D. Managerial accounting.  11.The officer of a corporation responsible for the firm's published financialstatements would be most

concerned about pronouncements of the:  

A. FASB.

B. AICPA.

C. GASB.

D. SEC.

E. IRS.

  12.Which of the following is not a characteristic or limitation of the kind of information that financial reporting by business enterprises can provide?   A. The information results in approximate, rather than exact, measures.B. The information largely reflects the financial effects of transactions that have already happened.C. The information is provided and used at a cost.D .  All of the above are characteristics or limitations of the kind of information that financial reporting by business enterprises can provide. 

13.The ethical concept of independence means that an accountant employed:  

A. By a corporation cannot prepare financial statements for use by the company's bank.B. By one company cannot work part-time for another company.C. By an auditing firm cannot own any stock in the company being audited.D. By one company cannot accept a job with another company in the same industry. 

14.The objectives of financial reporting for nonbusiness enterprises:  

A. Are exactly the same as those for business enterprises.B. Focus on providing information for resource providers, rather than investors.C. Have more of an internal utilization rather than external reporting focus.D. Do not give consideration to the cost of providing information.

  2 / 4

15.The ethical concept of integrity means that an individual must:  

A. Sign a pledge to abide by all laws and regulations.B. Report to a supervisor any violation of the code of conduct of her company that is observed.C. Read, understand, and agree to follow all provisions of her employer's code of conduct.D. Attempt to be honest and forthright in dealings and communications with others.  16.Which of the following is an objective of financial reporting by business enterprises?   A. Financial reporting should provide assurance that all liabilities of business enterprises will be paid.B. Financial reporting should show the timing and amount of future cash dividends to potential investors.C. The primary focus of financial reporting is information about the assets of the entity.D .  Financial reporting should provide information about the economic resources of an enterprise, the claims to those resources, and changes in those resources and claims to them.  17.Which of the following is true about the IASB?   A. Created to promote world acceptance and observation of accounting and financial reports.B. The IASB is a private body and the pronouncements cannot be enforced.C. Both A and B are correct.D. None of the above is correct.  18.The provisions of the Sarbanes-Oxley Act of 2002 had the following components:   A. Enforce auditing.B. Attestation.C. Quality control.D. None of the above are provisions.E. A, B and C are correct. 

• / 4

Ch 01 Key  1. D   2. B   3. C   4. C   5. B   6. A   7. D   8. C   9. D  

10. D

11. A

12. D

13. C

14. B

15. D

16. D

17. C

18. E

• / 4