Accounting Quiz

Accountants refer to an economic event as a

• purchase.

• sale.

• transaction.

• change in ownership.

The accounting process includes each of the following except

• communication.

• convergence.

• identification.

• recording.

Communication of economic events is the part of the accounting process that involves

• identifying economic events.

• quantifying transactions into dollars and cents.

• preparing accounting reports.

• recording and classifying information.

Which of the following events cannot be quantified into dollars and cents and recorded as an accounting transaction?

• The appointment of a new accounting firm to perform an audit.

• The purchase of a new computer.

• The sale of store equipment.

• Payment of income taxes.

Recording of economic events involves

• keeping a systematic, chronological diary of events.

• analyzing reported information.

• explaining the meaning of reported data.

• preparing accounting reports.

The accounting process involves all of the following except

• identifying economic events that are relevant to the business.

• communicating financial information to users by preparing financial reports.

• recording nonquantifiable economic events.

• analyzing and interpreting financial reports.

The accounting process is correctly sequenced as

• identification, communication, recording.

• recording, communication, identification.

• identification, recording, communication.

• communication, recording, identification.

Which of the following techniques is not used by accountants to interpret and report financial information?

• Graphs.

• Special memos for each class of external users.

• Charts.

• Ratios.

Bookkeeping primarily involves which of the following parts of the accounting process?

• Identification.

• Communication.

• Recording.

• Analysis.

Which of the following would not be considered an external user of accounting data for the GHI Company?

• Taxing authority representative.

• Management.

• Creditors.

• Customers.