1. Financial Accounting Questions

The emphasis in financial accounting is on which of the following external user groups?

• Certified public accountants

• Educators

• Investors and creditors

• Management

The primary internal group that uses accounting information is

• Government agencies

• Management

• Competitors

• Investors

Internal reports are generally used by

• Management

• Suppliers

• Lenders

• Employees

Which of the following is NOT an external user of financial information?

• Competitors

• Suppliers

• Customers

• Management

Which of the following is NOT true of the Financial Accounting Standards Board (FASB)?

• It seeks consistency for its proposed standards

• It is a government agency

• It has no legal power to enforce the standards it sets

• It consists of seven full-time members

Generally accepted accounting principles are:

• Natural laws

• Based on scientific proofs

• Developed by accounting rule makers

• None of these are correct

The initials GAAP stand for:

• Generally Applied Accounting Procedures

• Generally Accepted Accounting Principles

• Generally Accepted Accounting Practices

• General Accounting Administration Practices

The current standard-setting board for accounting in the private sector is the:

• International Accounting Standards Board (IASB)

• American Accounting Association (AAA)

• Financial Accounting Standards Board (FASB)

• Securities and Exchange Commission (SEC)

Standards established by the International Accounting Standards Board are referred to as:

• International Financial Accounting Standards

• International Auditing Standards

• Generally Accepted Accounting Standards

• International Financial Reporting Standards

The initials CPA stand for:

• Certified Professional Accountant

• Certified Public Auditor

• Certified Professional Appraiser

• Certified Public Accountant