1.
Award: 1.00 point
2.
Award: 1.00 point
3.
Award: 1.00 point
Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United
States?
Securities and Exchange Commission
U.S. Congress
International Accounting Standards Board
Financial Accounting Standards Board
The Financial Accounting Standards Board is a privately funded group charged with establishing accounting standards for the U.S. It is not a branch of the U.S.
government.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Identify the ways accounting benefits
society.
The Heritage Company is a manufacturer of office furniture. Which term best describes Heritage's role in society?
Business
Regulatory agency
Consumer
Resource owner
Businesses transform basic resources provided by resource owners into goods and services that consumers demand. Regulatory agencies set policies that
affect the way that businesses operate.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-01 Identify the ways accounting benefits
society.
Which resource providers lend financial resources to a business with the expectation of repayment with interest?
Consumers
Creditors
Investors
Owners
Businesses borrow money from creditors, and repay the amount borrowed, plus, when applicable, an additional fee known as interest. Investors, in contrast,
provide financial resources in exchange for ownership interest in the business.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Identify the ways accounting benefits
society.
4.
Award: 1.00 point
5.
Award: 1.00 point
6.
Award: 1.00 point
Which type of accounting information is intended to satisfy the needs of external users of accounting information?
Cost accounting
Managerial accounting
Tax accounting
Financial accounting
Financial accounting is intended to satisfy the needs of external users of accounting information. Managerial accounting, including cost accounting, is intended
for the needs of internal users, or managers, of a business. Tax accounting is specifically intended for tax regulatory agencies.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Identify the ways accounting benefits
society.
Which of the following is false regarding managerial accounting information?
It is often used by investors.
It is more detailed than financial accounting information.
It can include nonfinancial information.
It focuses on divisional rather than overall profitability.
Managerial accounting provides information primarily for internal users, or managers, of businesses. Managers require more detailed information about a
business than do external users, and sometimes that information is nonfinancial in nature. Managerial accounting information focuses on divisional rather than
overall profitability and is not typically made available to external users, such as investors.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-01 Identify the ways accounting benefits
society.
Financial accounting standards are known collectively as GAAP. What does that acronym stand for?
Generally Accepted Accounting Principles
Generally Applied Accounting Procedures
Governmentally Approved Accounting Practices
Generally Authorized Auditing Principles
Generally Accepted Accounting Principles (referred to as GAAP) are established by the Financial Accounting Standards Board.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Identify the ways accounting benefits
society.
7.
Award: 1.00 point
8.
Award: 1.00 point
9.
Award: 1.00 point
International accounting standards are formulated by the IASB. What does that acronym stand for?
Internationally Accepted Standards Board
International Accounting Standards Board
International Accountability Standards Bureau
International Accounting and Sustainability Board
The International Accounting Standards Board establishes accounting standards for most countries outside of the U.S.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Identify the ways accounting benefits
society.
Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called Wooden Wheels. Jack transferred $650,000 of the cash that he borrowed to
Award: 1.00 point
2.
Award: 1.00 point
3.
Award: 1.00 point
Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United
States?
Securities and Exchange Commission
U.S. Congress
International Accounting Standards Board
Financial Accounting Standards Board
The Financial Accounting Standards Board is a privately funded group charged with establishing accounting standards for the U.S. It is not a branch of the U.S.
government.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Identify the ways accounting benefits
society.
The Heritage Company is a manufacturer of office furniture. Which term best describes Heritage's role in society?
Business
Regulatory agency
Consumer
Resource owner
Businesses transform basic resources provided by resource owners into goods and services that consumers demand. Regulatory agencies set policies that
affect the way that businesses operate.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-01 Identify the ways accounting benefits
society.
Which resource providers lend financial resources to a business with the expectation of repayment with interest?
Consumers
Creditors
Investors
Owners
Businesses borrow money from creditors, and repay the amount borrowed, plus, when applicable, an additional fee known as interest. Investors, in contrast,
provide financial resources in exchange for ownership interest in the business.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Identify the ways accounting benefits
society.
4.
Award: 1.00 point
5.
Award: 1.00 point
6.
Award: 1.00 point
Which type of accounting information is intended to satisfy the needs of external users of accounting information?
Cost accounting
Managerial accounting
Tax accounting
Financial accounting
Financial accounting is intended to satisfy the needs of external users of accounting information. Managerial accounting, including cost accounting, is intended
for the needs of internal users, or managers, of a business. Tax accounting is specifically intended for tax regulatory agencies.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Identify the ways accounting benefits
society.
Which of the following is false regarding managerial accounting information?
It is often used by investors.
It is more detailed than financial accounting information.
It can include nonfinancial information.
It focuses on divisional rather than overall profitability.
Managerial accounting provides information primarily for internal users, or managers, of businesses. Managers require more detailed information about a
business than do external users, and sometimes that information is nonfinancial in nature. Managerial accounting information focuses on divisional rather than
overall profitability and is not typically made available to external users, such as investors.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-01 Identify the ways accounting benefits
society.
Financial accounting standards are known collectively as GAAP. What does that acronym stand for?
Generally Accepted Accounting Principles
Generally Applied Accounting Procedures
Governmentally Approved Accounting Practices
Generally Authorized Auditing Principles
Generally Accepted Accounting Principles (referred to as GAAP) are established by the Financial Accounting Standards Board.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Identify the ways accounting benefits
society.
7.
Award: 1.00 point
8.
Award: 1.00 point
9.
Award: 1.00 point
International accounting standards are formulated by the IASB. What does that acronym stand for?
Internationally Accepted Standards Board
International Accounting Standards Board
International Accountability Standards Bureau
International Accounting and Sustainability Board
The International Accounting Standards Board establishes accounting standards for most countries outside of the U.S.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Identify the ways accounting benefits
society.
Jack Henry borrowed $800,000 from Walt Bank to open a new bike store called Wooden Wheels. Jack transferred $650,000 of the cash that he borrowed to