Test 1 - Name: __________________________ Date:...

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Unformatted text preview: Name: __________________________ Date: _____________ Accounting 5312 Test 1 Fall 06 1. Which of the following entities would not require accounting information pertaining to their economic activities? A) Social clubs. B) Not-for-profit entities. C) State governments. D) All of the above require accounting information. E) None of the above requires accounting information. 2. Which of the following is not an objective of financial reporting described in FASB Concepts Statement No. 1? A) To provide information about how management of an enterprise has discharged its stewardship responsibility to owners. B) To measure the current market value of the business enterprise. C) To provide information so potential investors or creditors can make their own predictions of future earnings. D) To focus primarily on information about earnings and its components. E) All of the above are objectives of financial reporting. 3. Major classifications of accounting activity would not include: A) financial accounting, internal auditing, public accounting. B) internal auditing, governmental accounting, managerial accounting. C) financial accounting, national accounting, cost accounting. D) auditing, income tax accounting, governmental accounting. 4. Which of the following is not an example of a decision or informed judgment that a potential employee could make from accounting information? A) Personnel turnover statistics (i.e., hiring and terminations). B) Probability of the company's ability to make profit sharing plan contributions in the future. C) Assessment of the risk that the company may become bankrupt in the near future. D) The extent of the company's commitment to a research program. 5. Cost accounting is a subset of which of the following? A) Internal auditing. B) Public auditing. C) Cost analysis. D) Managerial accounting. 6. Which of the following is not a characteristic or limitation of the kind of information that financial reporting by business enterprises can provide? A) The information results in approximate, rather than exact, measures. B) The information largely reflects the financial effects of transactions that have already happened. C) The information is provided and used at a cost. 7. The objectives of financial reporting for nonbusiness enterprises: A) Are exactly the same as those for business enterprises. B) Focus on providing information for resource providers, rather than investors. C) Have more of an internal utilization rather than external reporting focus. D) Do not give consideration to the cost of providing information. 8. Which of the following is an objective of financial reporting by business enterprises? A) Financial reporting should provide assurance that all liabilities of business enterprises will be paid....
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This note was uploaded on 02/09/2008 for the course ACCT 108 taught by Professor X during the Fall '06 term at Lehigh University .

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Test 1 - Name: __________________________ Date:...

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