Question 1

The object of accounting measurement must always be a separate legal entity.

Accepted Answer

A) True 
 B)False  False

Question 2

A common issue that management accounting tries to deal with is determining the cost of producing an item.

Accepted Answer

A) True 
 B)False  True

Question 3

""Objects"" of accounting measurment can include both companies and groups of companies.

Accepted Answer

A) True 
 B)False  True

Question 4

In the U.S., the same authorities set income tax rules and accounting standards for public companies.

Accepted Answer

A) True 
 B)False

Question 5

Managerial accounting is designed to assist management decision-making, planning, and control.

Accepted Answer

A) True 
 B)False

Question 6

The "realization principle" for recognizing revenues would be best described as which component of a measurement system?

Accepted Answer

A)  An object to be measured 
B)  A rule for measuring objects 
C)  A user decision model 
D)  A verifier 
A)  An object to be measured 
B)  A rule for measuring objects 
C)  A user decision model 
D)  A verifier

Question 7

In the accounting measurement system, the nature of the rules and the qualifications needed by the measurers are interrelated.

Accepted Answer

A) True 
 B)False

Question 8

One of the ways that accounting affects society is by making certain actions seem legitimate.

Accepted Answer

A) True 
 B)False

Question 9

The text talks about accounting as a measurement system. The accounting staff of a public company, which produces the financial statements, would be best described as which component of a measurement system?

Accepted Answer

A)  Objects to be measured 
B)  Rules for measuring objects 
C)  Verifiers 
D)  Users 
E)  Measurers 
A)  Objects to be measured 
B)  Rules for measuring objects 
C)  Verifiers 
D)  Users 
E)  Measurers

Question 10

The text talks about accounting as a measuring system. The auditors of public company financial statements would be best described as which component of a measurement system?

Accepted Answer

A)  Objects to be measured 
B)  Rules for measuring objects 
C)  Verifiers 
D)  Users 
A)  Objects to be measured 
B)  Rules for measuring objects 
C)  Verifiers 
D)  Users

Question 11

Financial accounting is the field of accounting that would deal with the question of why operating performance differed from management plans.

Accepted Answer

A) True 
 B)False

Question 12

One of the types of accounting values that differs among countries is the preference for professional judgment versus statutory control.

Accepted Answer

A) True 
 B)False

Question 13

One reason that tax accounting rules differ from generally accepted accounting principles is that:

Accepted Answer

A)  Taxpayers often tend to overstate income, and companies tend to understate income when reporting to shareholders. 
B)  Taxes are rarely disputed, so there is less need for verifiability in tax rules. 
C)  The tax code tries to follow the economic substance of transactions, but generally accepted accounting principles focus on their legal form. 
D)  Congress has decided that some actions should not be rewarded by tax deductions, even though they may meet the accounting definition of expenses. 
A)  Taxpayers often tend to overstate income, and companies tend to understate income when reporting to shareholders. 
B)  Taxes are rarely disputed, so there is less need for verifiability in tax rules. 
C)  The tax code tries to follow the economic substance of transactions, but generally accepted accounting principles focus on their legal form. 
D)  Congress has decided that some actions should not be rewarded by tax deductions, even though they may meet the accounting definition of expenses.

Question 14

The purposes of financial accounting include

Accepted Answer

A)  Both providing information for economic decisions AND tracking how much income shareholders earned 
B)  Providing information for economic decisions but not tracking how much income shareholders earned 
C)  Tracking how much income shareholders earned but not providing information for economic decisions 
D)  Giving information regarding stewardship, but neither providing information for economic decisions nor tracking how much income shareholders earned 
A)  Both providing information for economic decisions AND tracking how much income shareholders earned 
B)  Providing information for economic decisions but not tracking how much income shareholders earned 
C)  Tracking how much income shareholders earned but not providing information for economic decisions 
D)  Giving information regarding stewardship, but neither providing information for economic decisions nor tracking how much income shareholders earned

Question 15

All companies must follow generally accepted managerial accounting principles in creating their internal reports.

Accepted Answer

A) True 
 B)False

Question 16

The FASB believes that the objectives of financial accounting should not depend in any way on the economic and legal environment of the United States.

Accepted Answer

A) True 
 B)False

Question 17

The term "stewardship" describes managers' obligation to serve shareholders faithfully.

Accepted Answer

A) True 
 B)False

Question 18

The start of the designation of certified public accountant in the U.S. began

Accepted Answer

A)  Between 1780 and 1800 
B)  Between 1850 and 1870 
C)  Between 1890 and 1910 
D)  In the 1960s 
A)  Between 1780 and 1800 
B)  Between 1850 and 1870 
C)  Between 1890 and 1910 
D)  In the 1960s

Question 19

The primary maker of financial accounting standards in the United States is the International Accounting Standards Board.

Accepted Answer

A) True 
 B)False

Question 20

There are often trade-offs that need to be made between the different criteria for good measurement systems.

Accepted Answer

A) True 
 B)False

The object of accounting measurement must always be a separate legal entity.

A common issue that management accounting tries to deal with is determining the cost of producing an item.

""Objects"" of accounting measurment can include both companies and groups of companies.

In the U.S., the same authorities set income tax rules and accounting standards for public companies.

Managerial accounting is designed to assist management decision-making, planning, and control.

The "realization principle" for recognizing revenues would be best described as which component of a measurement system?

In the accounting measurement system, the nature of the rules and the qualifications needed by the measurers are interrelated.

One of the ways that accounting affects society is by making certain actions seem legitimate.

The text talks about accounting as a measurement system. The accounting staff of a public company, which produces the financial statements, would be best described as which component of a measurement system?

The text talks about accounting as a measuring system. The auditors of public company financial statements would be best described as which component of a measurement system?

Financial accounting is the field of accounting that would deal with the question of why operating performance differed from management plans.

One of the types of accounting values that differs among countries is the preference for professional judgment versus statutory control.

One reason that tax accounting rules differ from generally accepted accounting principles is that:

The purposes of financial accounting include

All companies must follow generally accepted managerial accounting principles in creating their internal reports.

The FASB believes that the objectives of financial accounting should not depend in any way on the economic and legal environment of the United States.

The term "stewardship" describes managers' obligation to serve shareholders faithfully.

The start of the designation of certified public accountant in the U.S. began

The primary maker of financial accounting standards in the United States is the International Accounting Standards Board.

There are often trade-offs that need to be made between the different criteria for good measurement systems.

Selecting Your Business Structure

Choosing Accounting Software

Managing Your Accounts

Accounting for Inventory

Doing Business Day to Day

Tackling the General Ledger

Reconciling Bank and Credit Card Statements

Setting up New Team Members

Understanding Insurance

Other Benefits and Reimbursements

Payroll Taxes

Appendix

Filters

Exam 1: How Accounting Works

The object of accounting measurement must always be a separate legal entity.

A common issue that management accounting tries to deal with is determining the cost of producing an item.

""Objects"" of accounting measurment can include both companies and groups of companies.

In the U.S., the same authorities set income tax rules and accounting standards for public companies.

Managerial accounting is designed to assist management decision-making, planning, and control.

The "realization principle" for recognizing revenues would be best described as which component of a measurement system?

In the accounting measurement system, the nature of the rules and the qualifications needed by the measurers are interrelated.

One of the ways that accounting affects society is by making certain actions seem legitimate.

The text talks about accounting as a measurement system. The accounting staff of a public company, which produces the financial statements, would be best described as which component of a measurement system?

The text talks about accounting as a measuring system. The auditors of public company financial statements would be best described as which component of a measurement system?

Financial accounting is the field of accounting that would deal with the question of why operating performance differed from management plans.

One of the types of accounting values that differs among countries is the preference for professional judgment versus statutory control.

One reason that tax accounting rules differ from generally accepted accounting principles is that:

The purposes of financial accounting include

All companies must follow generally accepted managerial accounting principles in creating their internal reports.

The FASB believes that the objectives of financial accounting should not depend in any way on the economic and legal environment of the United States.

The term "stewardship" describes managers' obligation to serve shareholders faithfully.

The start of the designation of certified public accountant in the U.S. began

The primary maker of financial accounting standards in the United States is the International Accounting Standards Board.

There are often trade-offs that need to be made between the different criteria for good measurement systems.

Selecting Your Business Structure

Choosing Accounting Software

Managing Your Accounts

Accounting for Inventory

Doing Business Day to Day

Tackling the General Ledger

Reconciling Bank and Credit Card Statements

Setting up New Team Members

Understanding Insurance

Other Benefits and Reimbursements

Payroll Taxes

Appendix

Filters