Accounting Quiz

Accounting is the “language of _____”.

• business

• financial statements

• Main Street

• Wall Street

Financial accounting information ______.

• provide investors with guarantees about the future

• should be incomplete to confuse competitors

• should be prepared differently by each company

• summarizes what has already occurred

External users of financial accounting information include all the following except ______.

• employees of a business

• governmental agencies such as the IRS

• lenders such as bankers

• potential investors

Who would have access to Managerial Accounting information?

• Bankers

• Competitors of the business

• Investors

• Managers

All the following are examples of managerial accounting activities except ________.

• deciding whether to use automation

• making equipment repair or replacement decisions

• measuring costs of production for each product produced

• preparing external financial statements in compliance with GAAP

Which of the following is not true?

• Organizations add value to society

• Organizations have inflows & outflows of resources

• Organizations need accounting information

• Organizations share a common purpose or mission

What type of business primarily serves a community need?

• For-profit

• Manufacturing

• Non-profit

• Retail

Which of the following is not a retailer?

• Car dealership

• Computer manufacturer

• Grocery store

• Electronics store

A governmental agency can best be described by which of the following?

• It has a primary purpose of making a profit

• It has a primary purpose of using taxpayer funds to provide public services

• It has regular shareholder meetings

• It produces goods for sale to the public

Which is not a type of not-for-profit entity?

• Community foundation

• Local movie theater

• Public library

• University