Topic 1 Introduction to Accounting

Which does not form part of the general definition of accounting?

• Provides information

• Useful in decision making

• Primarily concerned with historical data -- financial accounting

• Processes transactions of financial character

Accounting provides which of the following information?

• Qualitative information

• Quantitative information

• Financial information

• All of the above

Accounting is

• An art

• A science

• Both an art and a science

• Neither an art nor a science

The branch of accounting that focuses on the preparation and presentation of financial statements primarily to external users.

• Financial accounting

• Management accounting

• External auditing

• Tax accounting

Provides information used internally for planning, evaluating, analyzing, and controlling business decisions and operations.

• Internal auditing

• Financial accounting

• Management accounting

• Forensic accounting

The basic purpose of accounting is to

• Provide information for decision-making

• Compute the applicable income tax

• Comply with state requirements

• Determine the net income of a company

Which of the following is not an asset?

• Motor Vehicle

• Loan to buy Equipment

• Building

• Computer

Which of the following is an economic entity?

• A charitable institution

• A grocery store

• Both A and B

• None of the above

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

• Balance Sheet

• Income Statement

• Statement Of Cash Flows

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the

• Balance Sheet

• Income Statement

• Statement Of Cash Flows