random questions accounting – Flashcards
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the set of standards, assumptions, and concepts that form the "ground rules" for financial reporting in the United States is termed
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Generally accepted accounting principles.
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Financial statements are prepared:
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Primarily for the benefit of persons outside of the business organization
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Although accounting information is used by a wide variety of external parties, financial reporting is primarily directed toward the informational needs of
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Investors and creditors.
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Which of the following is not a user of internal accounting information?
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Creditor
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Which of the following is generally not considered an external user of accounting information?
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Factory managers
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Which of the following is not characteristic of financial accounting?
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The information is confidential and is intended for use only by company management
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The objectives of an accounting system include all of the following except:
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Dictate the specific types of business transactions that the enterprise may engage in.
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Which of the following is not a basic function of an accounting system?
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To ensure that a business organization will be managed profitably.
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The field of accounting may best be described as:
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The art of interpreting, measuring, and describing economic activity.
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The field of accounting may best be described as:
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The art of interpreting, measuring, and describing economic activity.
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Generally accepted accounting principles:
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May change over time.
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Although accounting information is used by a wide variety of external parties, financial reporting is primarily directed toward the informational needs of:
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Investors and creditors
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Financial accounting information is:
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Designed to assist investors and creditors.
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The set of standards, assumptions, and concepts that form the "ground rules" for financial reporting in the United States is termed:
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Generally accepted accounting principles.
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The principal difference between management accounting and financial accounting is that financial accounting information is:
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Intended primarily for use by decision makers outside the business organization.
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Which of the following is not characteristic of financial accounting
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The information is confidential and is intended for use only by company management.
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Which of the following does not describe accounting?
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It is an end rather than a means to an end.
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Which of the following is a characteristic of financial accounting information?
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Its preparation requires judgment
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The accounting systems of most business organizations:
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Are tailored to meet the organization's needs for accounting information and the resources available for operating the system.
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The best definition of an accounting system is
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...
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A strong internal control structure:
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Contributes to the accuracy and reliability of the accounting records.
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the collection of accounts recieabbel with cause the total assets to
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increase
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The principle that states revenue should be recognized at the time goods are sold or services rendered is called:
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Revenue realization
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The essential point of a double-entry system of accounting is that every transaction:
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Affects two or more ledger accounts and is recorded by an equal dollar amount of debits and credits.
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The valuation principle of "mark-to-market" applied to investments classified as available for sale securities:
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...
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The mark-to-market adjustment:
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...
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The mark-to-market adjustment for investments classified as "available for sale" affects:
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...
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Which term is used specifically to describe a bond that is secured only by the general credit standing of the corporation?
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debenture
