Quiz 5

_____________ is a system for recognizing, analyzing and reporting about the financial transactions that affect and organization.

• a. Pricing

• b. Trading

• c. Benchmarking

• d. Accounting

 _____________________ work with an organization, prepare reports and analyze financial information such as budgets and cost management.

• a. Public accountants

• b. Government accountants

• c. Management accountants

• d. Forensic accountants

Stockholders would most likely use accounting information provided by their firm to:

• a. make capital budgeting decisions and financial forecasts.

• b. gauge whether the firm has made a strong return on their investment

• c. determine whether the firm can repay them for the orders it places.

• d. obtain information needed to satisfy legal reporting requirements.

 ____________________ typically require accounting information of a firm to evaluate its ability to pay back its loans by analyzing the firms financial statements.

• a. Managers

• b. Employees

• c. Suppliers

• d. Creditors

 Jane has completed 150 semester hours of college and has passed a rigorous four part accounting exam.  She also has a year's experience of working as an assistant accountant for a fashion company.  She provides management consultancy for multiple organizations on a fee basis.  Given her qualifications and experience, Jane is a certified _______________ accountant.

• a. fraud

• b. public

• c. forensic

• d. government

 _______________ accounting is the branch of accounting that addresses the needs of external stakeholders, including stockholders, creditors and government regulators.

• a. Forensic

• b. Investigative

• c. Managerial

• d. Financial

Generally accepted accounting principles (GAAP) is a set of accounting standards that is used in the:

• a. preparation of financial statements.

• b. preparation of a company's tax return.

• c. audit of a company's financial books.

• d. preparation of organizational budgets.

 Ultimate legal authority  to set and enforce accounting standards in the U.S. lies with the __________.

• a. SEC

• b. IRS

• c. FDA

• d. CFTC

The major responsibility of financial accounting is the preparation of the:

• a. balance sheet, income statement and statement of cash flows.

• b. journal, ledger and cash budget.

• c. articles of incorporation, auditor's opinion and master budget.

• d. management accounting practices, social audit and journal ledger.

The ____________  summarizes a firms financial position at a specific point in time by listing its assets, liabilities and owners' equity.

• a. statement of cash flows.

• b. income statement.

• c. balance sheet.

• d. budget.