ACCOUNTING IN ACTION PART 2

Which of the following techniques are NOT used by accountants to interpret and report

financial information?

a. Graphs

b. Special memos for each class of external users

c. Charts

d. Ratios

Which of the following would NOT be considered an internal user of accounting data for the

XYZ Company?

a. President of the company

b. Production manager

c. Merchandise inventory clerk

d. President of the employees' labor union

Which of the following would NOT be considered an external user of accounting data for the

XYZ Company?

a. Internal Revenue Service Agent

b. Management

c. Creditors

d. Customers

Which of the following would NOT be considered internal users of accounting data for a

company?

a. The president of a company

b. The controller of a company

c. Creditors of a company

d. Salesmen of the company

Bookkeeping differs from accounting in that bookkeeping primarily involves which part of

the accounting process?

a. Identification

b. Communication

c. Recording

d. Analysis

All of the following are services offered by PUBLIC accountants, EXCEPT:

a. budgeting.

b. auditing.

c. tax planning.

d. consulting.

Which list below BEST describes the major services performed by PUBLIC accountants?

a. Bookkeeping, mergers, budgets

b. Employee training, auditing, bookkeeping

c. Auditing, taxation, management consulting

d. Cost accounting, production scheduling, recruiting

Preparing tax returns and engaging in tax planning is performed by

a. public accountants only.

b. private accountants only.

c. both public and private accountants.

d. IRS accountants only

A private accountant can perform many activities in a business organization but would NOT

work in

a. budgeting.

b. accounting information systems.

c. external auditing.

d. tax accounting.

The origins of accounting are generally attributed to the work of

a. Christopher Columbus.

b. Abner Doubleday.

c. Luca Pacioli.

d. Leonardo da Vinci.