Question 1 General-purpose financial statements are the product of a. financial accounting.

1 General-purpose financial statements are the product of

a. financial accounting.

b. managerial accounting.

c. both financial and managerial accounting.

d. neither financial nor managerial accounting

2 . Users of financial reports include all of the following except

a. creditors.

b. government agencies.

c. unions.

d. All of these are users.

3 . Which of the following statements is not an objective of financial reporting?

a. Provide information that is useful in investment and credit decisions.

b. Provide information about enterprise resources, claims to those resources, and changes to them.

c. Provide information on the liquidation value of an enterprise.

d. Provide information that is useful in assessing cash flow prospects.

4 . Accrual accounting is used because

a. cash flows are considered less important.

b. it provides a better indication of ability to generate cash flows than the cash basis.

c. it recognizes revenues when cash is received and expenses when cash is paid.

d. none of the above.

5 . Which of the following (a-c) are not true concerning a conceptual framework in accounting?

a. It should be a basis for standard-setting.

b. It should allow practical problems to be solved more quickly by reference to it.

c. It should be based on fundamental truths that are derived from the laws of nature.

d. All of the above (a-c) are true.

6 . In the conceptual framework for financial reporting, what provides “the why”–the goals and purposes of accounting?

a. Measurement and recognition concepts such as assumptions, principles, and constraints

b. Qualitative characteristics of accounting information

c. Elements of financial statements

d. Objectives of financial reporting

7 . Accounting information is considered to be relevant when it

a. can be depended on to represent the economic conditions and events that it is intended to represent.

b. is capable of making a difference in a decision.

c. is understandable by reasonably informed users of accounting information.

d. is verifiable and neutral.

8 . According to Statement of Financial Accounting Concepts No. 2, which of the following relates to both relevance and reliability?

a. Materiality

b. Understandability

c. Usefulness

d. All of these

9 . Factors that shape an accounting information system include the

a. nature of the business.

b. size of the firm.

c. volume of data to be handled.

d. all of these.

10 . A journal entry to record the sale of inventory on account will include a

a. debit to inventory.

b. debit to accounts receivable.

c. debit to sales.

d. credit to cost of goods sold.

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.