WorksheetsAccounting Topic 1 - What is Accounting?
Total questions: 67
Worksheet time: 34mins
According to Warren Buffet, what is accounting?
The language of art
The language of science
The language of music
The language of business
What is the market capitalization of Netflix at the end of 2021?
$267 billion
$100 million
$500 million
$50 billion
How many employees does Netflix have?
5,000
15,000
20,000
10,000
What is the primary role of accounting?
Designing new products
Recording and maintaining financial transactions
Managing customer service
Developing marketing strategies
What is the process of providing relevant accounting and financial data and information to the users called?
Customer service
Market research
Data analysis
Financial reporting
What is the decision management makes based on information about their cost of goods sold?
Pricing
Distribution
Marketing
Production
Who relies on timely, accurate, and well-organized financial information from companies like Netflix?
Employees only
Government only
Customers only
Investors and creditors
How many businesses are there in the United States alone?
30 million
20 million
40 million
10 million
What is the accounting profession ultimately responsible for?
Recording, maintaining, and reporting an organization’s financial transactions and information
Developing new technologies
Managing human resources
Creating marketing campaigns
According to the text, what is accounting considered to be?
The universal language of science
The universal language of business
The universal language of art
The universal language of music
What is the primary focus of Accounting?
Financial planning
Financial analysis
Managing assets
Recording financial transactions
What is the primary focus of Finance?
Financial analysis
Recording financial transactions
Financial planning
Managing assets
What is the difference between Accounting and Finance?
Accounting is about managing assets, while Finance is about financial planning
Accounting is about financial decisions, while Finance is about financial activities
Accounting is about financial activities, while Finance is about financial decisions
Accounting is about financial planning, while Finance is about managing assets
What do Accountants do?
Create financial reports
Manage cash flow
Make financial decisions
Analyze financial data
What do Finance professionals do?
Create financial reports
Manage cash flow
Make financial decisions
Analyze financial data
According to Warren Buffet, what is accounting?
The language of art
The language of science
The language of music
The language of business
What is the market capitalization of Netflix at the end of 2021?
$267 billion
$100 million
$500 million
$50 billion
How many employees does Netflix have?
5,000
15,000
20,000
10,000
What is the primary role of accounting?
Designing new products
Recording and maintaining financial transactions
Managing customer service
Developing marketing strategies
What is the process of providing relevant accounting and financial data and information to the users called?
Customer service
Market research
Data analysis
Financial reporting
What is the decision management makes based on information about their cost of goods sold?
Pricing
Distribution
Marketing
Production
Who relies on timely, accurate, and well-organized financial information from companies like Netflix?
Employees only
Government only
Customers only
Investors and creditors
How many businesses are there in the United States alone?
30 million
20 million
40 million
10 million
What is the accounting profession ultimately responsible for?
Recording, maintaining, and reporting an organization’s financial transactions and information
Developing new technologies
Managing human resources
Creating marketing campaigns
According to the text, what is accounting considered to be?
The universal language of science
The universal language of business
The universal language of art
The universal language of music
What is the primary focus of Accounting?
Financial planning
Financial analysis
Managing assets
Recording financial transactions
What is the primary focus of Finance?
Financial analysis
Recording financial transactions
Financial planning
Managing assets
What is the difference between Accounting and Finance?
Accounting is about managing assets, while Finance is about financial planning
Accounting is about financial decisions, while Finance is about financial activities
Accounting is about financial activities, while Finance is about financial decisions
Accounting is about financial planning, while Finance is about managing assets
What do Accountants do?
Create financial reports
Manage cash flow
Make financial decisions
Analyze financial data
What do Finance professionals do?
Create financial reports
Manage cash flow
Make financial decisions
Analyze financial data
What is the median salary for accounting professionals at the end of 2020?
$73,500/yr
$35,000/yr
Over $1 million/yr
$56,300/yr
Which of the following is not a category of accounting?
Managerial Accounting
Financial Accounting
Tax Accounting
Economic Accounting
What is the primary focus of public accounting?
Recording company transactions
Providing tax and consulting services
Reviewing internal financial reports
Preparing financial statements
Which of the following is not one of the 'Big Four' public accounting firms in the US?
Klynveld Peat Marwick Goerdeler (KPMG)
PricewaterhouseCoopers (PwC)
Ernst & Young (EY)
Deloitte
What is the primary focus of private accounting?
Recording company transactions
Providing tax and consulting services
Reviewing internal financial reports
Preparing financial statements
Which of the following is an example of a private accounting job?
Cost Accountant
Financial Accountant
Tax Accountant
Fund Accountant
What is the primary focus of fund accounting?
Recording company transactions
Providing tax and consulting services
Grouping resources into specific funds
Maximizing profits
What is the average salary earned by accountants with a bachelor’s degree in 2019?
$80,000
$79,500
$75,000
$70,000
Which certification is required to sign an audit report?
Certified Management Accountant (CMA)
Certified Internal Auditor (CIA)
Certified Public Accountant (CPA)
Chartered Financial Analyst (CFA)
Which accounting certification is recognized world-wide?
Certified Payroll Professional (CPP)
Certified Internal Auditor (CIA)
Certified Management Accountant (CMA)
Certified Public Accountant (CPA)
Who are the internal users of accounting information?
Investors, Directors, External Auditors
Management, Human resource managers, Marketing managers
Regulators, Creditors, Rating Agencies
Customers, Suppliers, Employees
What is the function of managerial accounting?
Attesting to the quality of company financial statements
Determining if company financial statements are accurate and complete
Helping an organization make well-informed decisions through the measurement, analysis, and communication of accounting information
Preparing financial statements and reports for external users
Who uses accounting information to make decisions around capital needs, compensation, pricing, and budgeting?
Human resource managers
Management or C-suite executives
Marketing managers
Purchasing managers
What do external auditors try to determine?
If the company is paying the proper amount of taxes
If the company is financially strong enough to follow through on delivering its products and services
If company financial statements are accurate and complete
If the company is disclosing the proper amount of information to its shareholders
Who wants to know if the company is financially stable enough and therefore worthy of purchasing goods or services from them on account?
Directors
Suppliers
Investors
Employees
What do creditors want to know?
If the company is growing and achieving its goals
If the company will be able to pay back all interest and principal amounts
If the company is financially stable and healthy
If the company is a good investment
What is the language of business?
English
Accounting
Science
Mathematics
What does GAAP stand for?
Generally Acknowledged Accounting Procedures
Generally Accepted Accounting Principles
Generally Accepted Accounting Procedures
Generally Acknowledged Accounting Principles
Which organization is responsible for establishing financial reporting standards through GAAP?
American Association of CPAs (AICPA)
Financial Accounting Standards Board (FASB)
Securities and Exchange Commission (SEC)
Internal Revenue Service (IRS)
What is the main difference between the accrual and cash methods of accounting?
Accrual method records transactions when they are earned or incurred, while cash method records transactions when cash changes hands
Accrual method records transactions when cash changes hands, while cash method records transactions when they are earned or incurred
Accrual method is regulated by the government, while cash method is not regulated
Accrual method is used by private companies, while cash method is used by public companies
Under the accrual method, when would a company recognize revenue for services that have been paid for in advance?
When the services are fully provided
At the beginning of the accounting period
At the time the cash is received
At the end of the accounting period
If a buyer is given 60 days to pay for a car purchased on June 20th, when would the sale be recorded under the cash method?
September 15th
July 20th
August 15th
June 20th
What is the purpose of GAAP?
To oversee the operations of public companies
To enforce accounting laws
To regulate the financial markets
To provide consistency and clarity in financial reporting
Which organization requires US publicly traded companies to follow/use GAAP?
Securities and Exchange Commission (SEC)
Internal Revenue Service (IRS)
Financial Accounting Standards Board (FASB)
American Association of CPAs (AICPA)
What is the main purpose of the Securities and Exchange Commission (SEC)?
To establish accounting standards
To regulate the US financial markets
To oversee private companies
To provide tax guidance to companies
What is the main difference between the cash accounting method and the accrual accounting method?
Cash accounting method is regulated by the government, while accrual method is not regulated
Cash accounting method is used by private companies, while accrual method is used by public companies
Cash accounting method records transactions when cash changes hands, while accrual method records transactions when they are earned or incurred
Cash accounting method is more accurate than accrual method
What are the core principles and assumptions that guide accounting professionals?
Specific principles and general assumptions
General principles and specific assumptions
General principles and basic assumptions
Basic principles and general assumptions
According to the revenue recognition principle, when should revenues be recognized when using the accrual basis of accounting?
When expenses are incurred
When cash is received
When assets are purchased
When they are earned
What does the cost principle in accounting refer to?
The amount of money paid for a product, service, or asset
The amount of money received for a product, service, or asset
The amount of money saved for a product, service, or asset
The amount of money owed for a product, service, or asset
When should expenses be recorded according to the matching principle?
At the end of the accounting period
At the same time the related revenue for the sale of a product or service is recorded
At the beginning of the accounting period
When cash is received
What does the full disclosure principle in accounting require?
To exclude relevant information in public company filings
To include only financial information in public company filings
To include only positive information in public company filings
To include all relevant and necessary information in public company filings
What does the objectivity principle in accounting emphasize?
Financial statements should be based on rumors and hearsay
Financial statements should be based on management's personal opinions and biases
Financial statements should be based on speculation and assumptions
Financial statements should be based on solid evidence and free of management's personal opinions and biases
What does the consistency assumption in accounting refer to?
Accounting methods are used randomly across accounting periods
Accounting methods are not used across accounting periods
Different accounting methods are used across accounting periods
The same accounting methods are consistently used across accounting periods
What does the going concern assumption in accounting assume?
A company will not meet its financial obligations and objectives in the future
A company will dissolve or go bankrupt in the near future
A company will remain in operation for the foreseeable future
A company will not report financial information in the future
What does the time period assumption in accounting assume?
Companies maintain and report financial information using random periods of time
Companies do not maintain and report financial information using any period of time
Companies maintain and report financial information using the same period of time
Companies maintain and report financial information using different periods of time
What does the economic entity assumption in accounting assume?
All accounting records of a business are separate from its owners' personal accounting records
All accounting records of a business are not maintained separately
All accounting records of a business are maintained separately only for large businesses
All accounting records of a business are combined with its owners' personal accounting records
What was the major impact of the Sarbanes-Oxley Act (SOX) on public companies?
Had no impact on the financial markets
Decreased investor confidence in financial reports
Increased the cost of public financial reporting without any positive impact
Reduced the practice, accountability, and oversight around ethical financial reporting standards
