Chapter 1 Revew Accounting Help

1048 Words Nov 15th, 2008 5 Pages
Multiple Choice Questions

1. Which of the following entities would not require accounting information pertaining to their economic activities? 
a. Social clubs.
b. Not-for-profit entities.
c. State governments.
D. All of these require accounting information.
e. None of these requires accounting information. Difficulty: Easy

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.
B. To measure the current market value of the business enterprise.
c. To provide information so potential investors or creditors can make their own predictions of future
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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. Difficulty: Medium

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. Difficulty: Medium

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. Difficulty: Medium

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
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