Chapter 1: Quiz
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| 1. | Financial accounting is concerned with _______________. |
| | | a) | reporting to external users, such as shareholders |
| | | b) | reporting to internal users, such as managers |
| | | c) | reporting to the Statistics Office of the Federal Government |
| | | d) | personal financial planning |
| | | e) | none of the above |
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| 2. | Important uses for accounting information include _______________. |
| | | a) | score-keeping |
| | | b) | attention directing |
| | | c) | decision support |
| | | d) | (a) & (b), but not (c) |
| | | e) | (a), (b) & (c) |
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| 3. | Issuing shares and borrowing money is part of the ______________ function. |
| | | a) | financial accounting |
| | | b) | management accounting |
| | | c) | personal financial planning |
| | | d) | finance |
| | | e) | none of the above |
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| 4. | Budgets are a key feature of _______________. |
| | | a) | scorekeeping |
| | | b) | planning |
| | | c) | control |
| | | d) | all of the above |
| | | e) | (b) & (c), but not (a) |
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| 5. | Management accounting is concerned with _______________. |
| | | a) | reporting to external users, such as shareholders |
| | | b) | reporting to internal users, such as managers |
| | | c) | reporting to the Statistics Office of the Federal Government |
| | | d) | personal financial planning |
| | | e) | none of the above |
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| 6. | Because investors entrust their resources to professional managers, they need accounting for purposes of _______________. |
| | | a) | scorekeeping |
| | | b) | attention directing |
| | | c) | decision support |
| | | d) | (a) & (b), but not (c) |
| | | e) | (a), (b) & (c) |
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| 7. | Which of the following managers need to have a basic knowledge of accounting? |
| | | a) | The chief financial officer |
| | | b) | The vice-president for Human Resource Management |
| | | c) | Production staff |
| | | d) | All managers |
| | | e) | None of the above. |
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| 8. | The role of the auditor of a company is _______________. |
| | | a) | to identify fraud |
| | | b) | to prosecute criminal managers |
| | | c) | to attest that the financial statements were prepared fairly and truly |
| | | d) | to calculate the tax liability |
| | | e) | none of the above |
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| 9. | Do good decisions lead to good outcomes? |
| | | a) | No, the world is too random to predict anything. |
| | | b) | Not always, but there is a strong likelihood. |
| | | c) | Yes, always. |
| | | d) | It depends on the weather. |
| | | e) | None of the above. |
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| 10. | Using accounting for decision support within the organization requires _______________. |
| | | a) | general purpose financial reports such as the income statement and the balance sheet |
| | | b) | specialized reports |
| | | c) | budgets |
| | | d) | personal financial planning |
| | | e) | none of the above |
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