Accounting Quiz

What is the purpose of accounting?

• To control finances

• To control human resources

• To control marketing

• To control production

What is the main way businesses use accounting information to maintain financial control?

• By tracking employee attendance

• By tracking customer satisfaction

• By tracking inventory levels

• By tracking the business's performance

Who are the primary users of managerial accounting information?

• Managers

• Government agencies

• Creditors

• Investors

What do investors use financial accounting information for?

• To review industry trends

• To determine if the business will pay them a good return on their investment

• To track employee performance

• To calculate taxes

What do creditors use financial accounting records for?

• To determine if the business will pay them a good return on their investment

• To make decisions about extending credit

• To make economic forecasts

• To track employee performance

What do government agencies review a business's accounting records for?

• To determine if the business is complying with various regulations

• To make economic forecasts

• To determine if the business will pay them a good return on their investment

• To track employee performance

What is the overall purpose of accounting?

• To control production

• To control marketing

• To control finances

• To control human resources

What do businesses use accounting to keep track of?

• Their performance

• Their employee satisfaction levels

• Their marketing strategies

• Their performance, what they own, and what they owe

What do businesses use accounting to plan for?

• The past

• The present

• The future

• The future and the present

What type of accounting involves reporting financial data to internal users?

• Tax accounting

• Financial accounting

• Managerial accounting

• Cost accounting