Test Bank For Accounting What the Numbers Mean David Marshall 12th Edition
Chapter 1 Accounting—Present and Past
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 entities require accounting information.
2) The authoritative financial accounting standards-setting body in the United States is presently the:
- A) Securities and Exchange Commission (SEC)
- B) International Accounting Standards Board (IASB)
- C) Public Company Accounting Oversights Board (PCAOB)
- D) Financial Accounting Standards Board (FASB)
- E) Accounting Principles Board (APB)
3) Which of the following statements about the Financial Accounting Standards Board is correct?
- A) The FASB is an agency of the Federal government.
- B) The FASB has the authority to fine a noncompliant firm.
- C) The FASB follows a due process procedure that permits input from interested parties before an Accounting Standards Update (ASU) is issued.
- D) The FASB is controlled by the American Institute of CPAs.
4) Major classifications of accounting activity would not include:
- A) financial accounting, internal auditing, public accounting.
- B) internal auditing, governmental accounting, managerial accounting.
- C) financial accounting, national accounting, cost accounting.
- D) auditing, income tax accounting, governmental accounting.
5) Which of the following is not an example of a decision or informed judgment that a potential investor would make from accounting information?
- A) Future profitability based on past profitability.
- B) Probability of success of a new product development.
- C) A forecast of dividends.
- D) Assessment of risk that a company may have more debt than it can repay if the economy enters a recession.
There are no reviews yet.