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

• Concerned with transactions of financial character

Accounting provides which of the following information?

• Qualitative information

• Quantitative information

• Financial information

• All of the above

Which of the following is an economic entity?

• A charitable institution

• A grocery store

• Both A and B

• None of the above

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

They are interested in a company's ability to continue its existence, especially if they are heavily dependent on the company's operations.

• Government

• Customers

• Suppliers

• Lenders

The area of practice where CPAs provide accounting services to several clients on a contractual or engagement basis?

• Public accounting

• Private accounting

• Government accounting

• Education or academe Education or academe

Trade creditors are most interested in which accounting information?

• Profitability

• Adaptability

• Liquidity

• Ability to continue operations Ability to continue operations

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 Determine the net income of a company