Accounting Test 1

11 Questions

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Accounting Quizzes & Trivia

Accounting study test for the basics.


Questions and Answers
  • 1. 
    Bookkeeping involves the recording of a company‚Äôs business                       
  • 2. 
    Are not directly involved with running the business, but do have a vested interest in the business.  
  • 3. 
    Example of external users
    • A. 

      Creditors (banks and suppliers)

    • B. 

      Investors (owners)

    • C. 

      Employees

    • D. 

      All of the above

  • 4. 
    Are directly involved with running the business
  • 5. 
    The area of accounting aimed at providing information to external users is called
  • 6. 
    The area of accounting aimed at providing information to internal users is called
  • 7. 
    Common set of accounting rules and procedures used by accountants.  These accounting and reporting standards are not static and may change over time. 
  • 8. 
          is necessary in order to make accounting information in financial statements relevant, reliable, and comparable.
  • 9. 
    By law, the Securities and Exchange Commission (SEC) is responsible for setting GAAP.  However, the SEC has delegated this responsibility to the
  • 10. 
    An independent accounting standards-setting organization based in London that is responsible for developing IFRS. 
  • 11. 
    The primary difference between IFRS and GAAP is that IFRS gives more                       and reporting guidance and provides much less overall detail compared to GAAP.