USING FINANCIAL INFORMATION AND ACCOUNTING

Accounting involves the _____ of the financial activities for firms.

• delegating

• summarizing

• creation

• empowering

Managerial accounting provides information that would probably be most beneficial to:

• the IRS

• financial analysts

• a lending officer of the bank

• a middle manager of the company

_____ deals with reporting to outsiders.  _____ accounting deals with the internal operations of the firm.

• Financial accounting; Auditing

• Auditing; Managerial accounting

• External accounting; Internal accounting

• Financial accounting; Managerial accounting

For which financial statement does the following rule apply: the two sides of the statement need to be equal

• Income Statement

• Balance Sheet

• Statement of Cash Flows

• Statement of Stockholder's Equity

If the assets of a business are Rs. 100,000 and equity is Rs. 20,000, the value of liability will be?

• Rs. 100,000

• Rs. 80,000

• Rs. 120,000

• Rs. 20,000

A(n) _____ is a yearly document that describes a firm's financial status and usually discusses a firm’s financial activities during the past year and its prospects for the future.

• trial balance

• firm summary

• annual report

• earnings report

Public accountants serve individuals and organizations on a fee basis.  Private accountants are also called corporate accountants.  Sarbanes-Oxley prohibits accountants from acting in advisory roles.

11. Which of the following statements about the accounting profession is true?

• Accountants are typically classified as private or public accountants.

• Accountants cannot legally offer management consulting services.

• Private accountants serve individuals and organizations on a fee basis.

• Public accountants work for local, state, and national agencies.

An accountant who has a bachelor's degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a:

• certified public accountant

• certified private accountant

• professional accountability

• financial analyst

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

• Accounting

• Record keeping

• Bookkeeping

• Auditing

Which of the following is an example of a liability that might be owned by an antique mall?

• an expensive Chinese urn with a small crack

• the sales prices paid by customers

• promotional sign

• money owed to utility companies