Monday, May 25, 2020

Chapter 1 Revew Accounting Help - 1048 Words

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†¦show more content†¦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