ACCT 2100 Chap 1 Practice Quiz

ACCT 2100 Chap 1 Practice Quiz - ACCT 2100 Chap 1 Practice...

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ACCT 2100 Chap 1 Practice Quiz CORRECT Which of the following statements is false? A) The FASB is an organization with the primary authority for establishing accounting  standards in the U.S. B) All companies must follow GAAP all the time. C) Private sector accountants perform the duties of billing customers, paying suppliers  and assessing performance, among others. D) The various state governments (not the AICPA) establish the requirements for  certification. Feedback:  Companies are not required to follow GAAP when preparing management accounting reports. These  reports are prepared for internal decision making purposes. The Financial Accounting Standards Board  (FASB) is a privately funded organization charged with the primary authority to establish standards  (GAAP) in the U.S. Private sector accountants provide a wide variety of accounting functions for their  employers, including classifying and recording transactions, billing customers, paying suppliers,  developing budgets and assessing performance, to name a few. Requirements for certification vary from  state to state as determined by each state's government.  LO: LO1 CORRECT Henna Company just sold two refrigerators to Sally Jones in a transaction where cash was  exchanged. From whose perspective did cash decrease? A) Henna Company B) The original supplier of the refrigerators C) Sally Jones D) No one Feedback:  Since Sally Jones purchased the refrigerators, she is the customer. Since she has exchanged cash for the  refrigerators, she now has less cash than she had previously. Henna Company is the seller of the  refrigerators; they have received cash in exchange for the items. The original supplier of the refrigerators  has nothing to do with this transaction.  LO: LO2 CORRECT Which of the following is NOT an element of a financial statement? A)
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This note was uploaded on 02/05/2012 for the course ACCT 2100 taught by Professor Smith during the Spring '08 term at Kennesaw.

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ACCT 2100 Chap 1 Practice Quiz - ACCT 2100 Chap 1 Practice...

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