Accounting Ultimate Exam Quiz! Trivia

14 Questions | Total Attempts: 2154

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Accounting Ultimate Exam Quiz! Trivia

Accounting is one of the important functions in any business as it helps to trace how funds are used and the effect of the transaction on the financial position of a business. How skilled do you think you are as an accountant? This quiz is one way to find out. Do give it a shot and see if you might need a refresher course. All the best!


Questions and Answers
  • 1. 
    Users of financial reports include all of the following except
    • A. 

      Creditors

    • B. 

      Government agencies

    • C. 

      Unions

    • D. 

      All of the above

  • 2. 
    The information provided by financial reporting pertains to
    • A. 

      Business industries, rather than to individual enterprises or an economy as a whole or to members of society as consumers.

    • B. 

      Individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers.

    • C. 

      An economy as a whole and to members of society as consumers, rather than to individual enterprises or industries.

    • D. 

      Individual business enterprises, industries, and an economy as a whole, rather than to members of society as consumers.

  • 3. 
    How does accounting help the capital allocation process attract investment capital?
    • A. 

      Both B and D

    • B. 

      Promotes productivity.

    • C. 

      Encourages innovation.

    • D. 

      Provides timely, relevant information.

  • 4. 
    Financial statements in the early 2000s provide information related to
    • A. 

      Hard assets (inventory and plant assets).

    • B. 

      Nonfinancial measurements.

    • C. 

      Forward-looking data.

    • D. 

      None of these.

  • 5. 
    What is a major objective of financial reporting?
    • A. 

      Provide information that is useful to management in making decisions.

    • B. 

      Provide information that is useful to assess the amounts, timing, and uncertainty of perspective cash receipts.

    • C. 

      Provide information that excludes claims to the resources.

    • D. 

      Provide information that clearly portray nonfinancial transactions.

  • 6. 
    Accrual accounting is used because
    • A. 

      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.

  • 7. 
    What is the purpose of the Emerging Issues Task Force?
    • A. 

      Provide a consensus on how to account for new and unusual financial transactions.

    • B. 

      Provide timely guidance on select issues.

    • C. 

      Provide interpretation of existing standards.

    • D. 

      Provide interpretive guidance.

  • 8. 
    The American Institute of Certified Public Accountants (AICPA) continues to be involved in all of the following except
    • A. 

      Developing and enforcing professional ethics.

    • B. 

      Providing professional education programs.

    • C. 

      Developing auditing standards.

    • D. 

      All of the above.

  • 9. 
    Rule 203 of the Code of Professional Conduct address:
    • A. 

      Ethical requirements.

    • B. 

      Advertising to obtained clients.

    • C. 

      Auditing financial statements.

    • D. 

      Financial statements should be based on generally accepted accounting principles.

  • 10. 
    The purpose of the International Accounting Standards Board is to
    • A. 

      Promote uniform accounting standards among countries of the world.

    • B. 

      Issue enforceable standards which regulate the financial accounting and reporting of multinational corporations.

    • C. 

      Develop a uniform currency in which the financial transactions of companies throughout the world would be measured.

    • D. 

      Arbitrate accounting disputes between auditors and international companies.

  • 11. 
    What is the "expectation gap"?
    • A. 

      The difference between what the public thinks the accountant is doing and what the accountant thinks they can do.

    • B. 

      The difference between what the public thinks the accountant is not doing and what the accountant knows they don't do.

    • C. 

      The difference between what the accountant is doing and what the Courts say the accountant should be doing.

    • D. 

      The difference between what the public thinks the accountant is doing and what Congress says the accountant is doing.

  • 12. 
    Which of the following is an ethical concern of accountants?
    • A. 

      Industry practices.

    • B. 

      Earnings manipulation.

    • C. 

      Conservative accounting.

    • D. 

      None of the above.

  • 13. 
    Authoritative standards for GAAP include:
    • A. 

      International Financial Reporting Standards, International Accounting Standards and any GAAP standard recognized by an organized stock exchange.

    • B. 

      International Financial Reporting Standards, International Accounting Standards and U.S. GAAP only.

    • C. 

      International Financial Reporting Standards and International Accounting Standards only.

    • D. 

      International Financial Reporting Standards only.

  • 14. 
    Which of these statements regarding the GAAP and U.S. GAAP is correct?
    • A. 

      IGAAP is considered to be "principles-based" and less detailed than U.S. GAAP

    • B. 

      U.S. GAAP is considered to be "principles-based" and more detailed than iGAAP.

    • C. 

      Both U.S. GAAP and iGAAP are considered to be "rules-based", but U.S. GAAP tends to be more complex.

    • D. 

      U.S. GAAP is considered to be "rules-based" and less detailed than iGAAP.