Financial Accounting Quiz

The basic components of a corporation include:

• Partners and incorporators

• Stockholders and promoters

• Members and general partners

• Contributors and executives

The systematic presentation of financial transactions refers to:

• Financial management

• Accounting process

• Tax compliance

• Economic analysis

Accounting is:

• An art

• A science

• Both an art and a science

• None of the above

The area of practice where CPAs provide accounting services to several clients on a contractual or engagement basis:

• Public accounting

• Private accounting

• Government accounting

• Education or academe

Accounting provides which of the following information?

• Assets

• Liabilities

• Profit or loss

• All of the above

Which of the following is NOT a feature of accounting?

• It is a service activity.

• It deals only with qualitative data.

• It is both an art and a discipline.

• It is an information system.

Which type of business organization has at least 15 members?

• Corporation

• Cooperative

• Partnership

• Sole proprietorship

The accounting branch focused on recording, presenting, and analyzing manufacturing costs is:

• Financial accounting

• Auditing

• Cost accounting

• Tax accounting

In public accounting practice, the starting position is typically:

• Supervisor

• Manager

• Audit staff

• Partner

Accounting is known as the language of business because:

• It communicates financial information.

• It replaces spoken language in business.

• It is universally understood.

• It uses codes and symbols.