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Ac 315 Midterm Exam Chapters 1-5[1]

Ac 315 Midterm Exam Chapters 1-5[1]

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Published by: kcreel2007 on Sep 05, 2012
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NAME :___Kelly Creel_______ DATE:__10/11/2011_______________ STUDENT #: ____A10303749_____________________ 
Directions: Underline the correct answer to the questions or statements listedbelow. There is only one correct answer to each of the questions or statements
MULTIPLE CHOICE (1 point each)
1. General-purpose financial statements are the product of a. financial accounting.b. managerial accounting.c. both financial and managerial accounting.d. neither financial nor managerial accounting.2. Users of financial reports include all of the following
 a. creditors.b. government agencies.c. unions.d. All of these are users.3. The financial statements most frequently provided include all of the following
thea. balance sheet.b. income statement.c. statement of cash flows.d. statement of retained earnings.4. The information provided by financial reporting pertains toa. individual business enterprises, rather than to industries or an economy as a wholeor to members of society as consumers.b. business industries, rather than to individual enterprises or an economy as a wholeor to members of society as consumers.c. individual business enterprises, industries, and an economy as a whole, rather thanto members of society as consumers.d. an economy as a whole and to members of society as consumers, rather than toindividual enterprises or industries.5. All the following are differences between financial and managerial accounting in howaccounting information is used except toa. plan and control company's operations.b. decide whether to invest in the company.c. evaluate borrowing capacity to determine the extent of a loan to grant.d. All the above.
 6. Which of the following represents a form of communication through financial reportingbut not through financial statements?a. Balance sheet.b. President's letter.c. Income statement.d. Notes to financial statements.7. The process of identifying, measuring, analyzing, and communicating financial
information needed by management to plan, evaluate, and control an organization’s
operations is calleda. financial accounting.b. managerial accounting.c. tax accounting.d. auditing.8. How does accounting help the capital allocation process attract investment capital?a. Provides timely, relevant information.b. Encourages innovation.c. Promotes productivity.d. a and b above.9. Which of the following is not a major challenge facing the accounting profession?a. Nonfinancial measurements.b. Timeliness.c. Accounting for hard assets.d. Forward-looking information.10. What is a major objective of financial reporting?a. Provide information that is useful to management in making decisions.b. Provide information that clearly portray nonfinancial transactions.c. Provide information that is useful to assess the amounts, timing, and uncertainty of perspective cash receipts.d. Provide information that excludes claims to the resources.11. Accrual accounting is used becausea. cash flows are considered less important.b. it provides a better indication of ability to generate cash flows than the cash basis.c. it recognizes revenues when cash is received and expenses when cash is paid.d. none of the above.12. Accounting principles are "generally accepted" only whena. an authoritative accounting rule-making body has established it in an official pro-nouncement.b. it has been accepted as appropriate because of its universal application.c. both a and b.d. neither a nor b.
13.. A common set of accounting standards and procedures are calleda. financial accounting standards.b. generally accepted accounting principles.c. objectives of financial reporting.d. statements of financial accounting concepts..14. Which of the following organizations has been responsible for setting U.S. accountingstandards?a. Accounting Principles Board.b. Committee on Accounting Procedure.c. Financial Accounting Standards Board.d. All of the above.15. A characteristic of generally accepted accounting principles include the followinga. common set of standards and principles.b. standards and principles are based federal statutes.c. acceptance requires an affirmative vote of Certified Public Accountants.d. practices that become accepted for at least a year by all industry members.16 . Companies that are listed on a stock exchange are required to submit their financialstatements to thea. AICPA.b. APBc. FASB.d. SEC.17. The purpose of the Emerging Issues Task Force is toa. develop a conceptual framework as a frame of reference for the solution of futureproblems.b. lobby the FASB on issues that affect a particular industry.c. do research on issues that relate to long-term accounting problems.d. issue statements which reflect a consensus on how to account for new and unusualfinancial transactions that need to be resolved quickly.18. Which of the following is a primary characteristic of useful accounting information?a. Comparability.b. Relevance.c. Consistency.d. Materiality.19. Which of the following is an ingredient of relevance?a. Verifiability.b. Representational faithfulness.c. Neutrality.d. Timeliness.

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Ashley Alice Thomas added this note
where are the answers for the word problems? i dont understand how to do them
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