Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

A measurement is a way of assigning numbers to objects.

Accepted Answer

A) True 
 B)False

Question 3

The accounting measurement system includes accountants, but does not include people who check if the accounting was done accurately.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following would be most directly relevant to determining the amount of materials needed for a manufactured product?

Accepted Answer

A)  Corporate law 
B)  Actuarial Science 
C)  Process Engineering 
D)  Ethics 
A)  Corporate law 
B)  Actuarial Science 
C)  Process Engineering 
D)  Ethics

Question 5

In the United States, ownership and management of public corporations is usually separate. As a result, shareholders
are not able to order managers to produce specific reports.

Accepted Answer

A) True 
 B)False

Question 6

The SEC was created in reaction to what event?

Accepted Answer

A)  The Panic of 1876 
B)  The 1890s depression 
C)  The 1929 stock market crash and the 1930s Great Depression 
D)  The Enron scandal 
A)  The Panic of 1876 
B)  The 1890s depression 
C)  The 1929 stock market crash and the 1930s Great Depression 
D)  The Enron scandal

Question 7

Which of the following are characteristics of good measurement systems?

Accepted Answer

A)  Clarity 
B)  Power 
C)  Simplicity 
D)  Theoretical fruitfulness 
E)  All of the above 
A)  Clarity 
B)  Power 
C)  Simplicity 
D)  Theoretical fruitfulness 
E)  All of the above

Question 8

The critical-interpretive perspective suggests that rules should be designed in a way that benefits the preparers of financial statements.

Accepted Answer

A) True 
 B)False

Question 9

Researchers find that one of the types of values that vary across different societies includes a preference for

Accepted Answer

A)  Expenses versus revenues 
B)  Optimism versus transparency 
C)  Uniformity versus flexibility 
D)  Secrecy versus professional judgment 
A)  Expenses versus revenues 
B)  Optimism versus transparency 
C)  Uniformity versus flexibility 
D)  Secrecy versus professional judgment

Question 10

Which of the following is not a correct statement when comparing financial and managerial accounting?

Accepted Answer

A) True 
 B)False

Question 11

The public companies whose financial statements we examine are best described as which component of the accounting measurement system?

Accepted Answer

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

Question 12

It is easy for standard-setters to set rules that both give companies flexibility in setting standards and ensure that different companies' reports are comparable.

Accepted Answer

A) True 
 B)False

Question 13

In the United States, the primary setter of management accounting standards is the

Accepted Answer

A)  U.S. Department of Commerce 
B)  Financial Accounting Standards Board 
C)  Securities and Exchange Commission 
D)  IMA 
A)  U.S. Department of Commerce 
B)  Financial Accounting Standards Board 
C)  Securities and Exchange Commission 
D)  IMA

Question 14

Research states that one of the ways accounting values vary across societies is in degree of the preference for professional judgment versus statutory control.

Accepted Answer

A) True 
 B)False

Question 15

The fact that the U.S. has a free enterprise system has all of the following consequences for accounting, except:

Accepted Answer

A)  Companies try to keep certain information secret, for competitive reasons. 
B)  Reporting tends to be from the perspective of the workers, not the owners. 
C)  Companies are allowed to choose among different accounting methods, instead of having to all use the same methods. 
D)  Companies generally do not try to measure the social value of their operations. 
A)  Companies try to keep certain information secret, for competitive reasons. 
B)  Reporting tends to be from the perspective of the workers, not the owners. 
C)  Companies are allowed to choose among different accounting methods, instead of having to all use the same methods. 
D)  Companies generally do not try to measure the social value of their operations.

Question 16

U.S. accounting typically uses inflation adjustments for the value of the dollar.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following fields have information that would be relevant to accounting regulators as they try to set rules for accounting for pension liabilities?

Accepted Answer

A)  Probability 
B)  Pension law 
C)  Actuarial science 
D)  Economics 
E)  All of the above 
A)  Probability 
B)  Pension law 
C)  Actuarial science 
D)  Economics 
E)  All of the above

Question 18

The critical-interpretive perspective suggests that accounting should be used as an instrument of social change.

Accepted Answer

A) True 
 B)False

Question 19

The term for the type of accounting that is slow to assume that good things have happened, and quick to assume bad things have happened, is

Accepted Answer

A)  Aggressive accounting 
B)  Optimistic accounting 
C)  Cash-basis accounting 
D)  Conservative accounting 
A)  Aggressive accounting 
B)  Optimistic accounting 
C)  Cash-basis accounting 
D)  Conservative accounting

Question 20

The idea that accounting standards should be set in a way that information must be relevant and reliable for users is the

Accepted Answer

A)  Economic consequences perspective 
B)  Social determinist perspective 
C)  Critical-interpretive perspective 
D)  Decision-usefulness perspective 
A)  Economic consequences perspective 
B)  Social determinist perspective 
C)  Critical-interpretive perspective 
D)  Decision-usefulness perspective

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

A measurement is a way of assigning numbers to objects.

The accounting measurement system includes accountants, but does not include people who check if the accounting was done accurately.

Which of the following would be most directly relevant to determining the amount of materials needed for a manufactured product?

In the United States, ownership and management of public corporations is usually separate. As a result, shareholders are not able to order managers to produce specific reports.

The SEC was created in reaction to what event?

Which of the following are characteristics of good measurement systems?

The critical-interpretive perspective suggests that rules should be designed in a way that benefits the preparers of financial statements.

Researchers find that one of the types of values that vary across different societies includes a preference for

Which of the following is not a correct statement when comparing financial and managerial accounting?

The public companies whose financial statements we examine are best described as which component of the accounting measurement system?

It is easy for standard-setters to set rules that both give companies flexibility in setting standards and ensure that different companies' reports are comparable.

In the United States, the primary setter of management accounting standards is the

Research states that one of the ways accounting values vary across societies is in degree of the preference for professional judgment versus statutory control.

The fact that the U.S. has a free enterprise system has all of the following consequences for accounting, except:

U.S. accounting typically uses inflation adjustments for the value of the dollar.

Which of the following fields have information that would be relevant to accounting regulators as they try to set rules for accounting for pension liabilities?

The critical-interpretive perspective suggests that accounting should be used as an instrument of social change.

The term for the type of accounting that is slow to assume that good things have happened, and quick to assume bad things have happened, is

The idea that accounting standards should be set in a way that information must be relevant and reliable for users is the

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

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

A measurement is a way of assigning numbers to objects.

The accounting measurement system includes accountants, but does not include people who check if the accounting was done accurately.

Which of the following would be most directly relevant to determining the amount of materials needed for a manufactured product?

In the United States, ownership and management of public corporations is usually separate. As a result, shareholders are not able to order managers to produce specific reports.

The SEC was created in reaction to what event?

Which of the following are characteristics of good measurement systems?

The critical-interpretive perspective suggests that rules should be designed in a way that benefits the preparers of financial statements.

Researchers find that one of the types of values that vary across different societies includes a preference for

Which of the following is not a correct statement when comparing financial and managerial accounting?

The public companies whose financial statements we examine are best described as which component of the accounting measurement system?

It is easy for standard-setters to set rules that both give companies flexibility in setting standards and ensure that different companies' reports are comparable.

In the United States, the primary setter of management accounting standards is the

Research states that one of the ways accounting values vary across societies is in degree of the preference for professional judgment versus statutory control.

The fact that the U.S. has a free enterprise system has all of the following consequences for accounting, except:

U.S. accounting typically uses inflation adjustments for the value of the dollar.

Which of the following fields have information that would be relevant to accounting regulators as they try to set rules for accounting for pension liabilities?

The critical-interpretive perspective suggests that accounting should be used as an instrument of social change.

The term for the type of accounting that is slow to assume that good things have happened, and quick to assume bad things have happened, is

The idea that accounting standards should be set in a way that information must be relevant and reliable for users is the

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