Financial Accounting Exam: Quiz! MCQ
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- 1.Traditionally, financial accounting information has focused primarily on:
- A.
Productivity
- B.
Efficiency
- C.
Product and service quality
- D.
Profitability
- 2.To create real value for customers and shareholders, a company must:
- A.
Use sound financial accounting techniques
- B.
Create profit over a five-year period
- C.
Create value for its employees
- D.
None of these answers is correct.
- 3.Because management accounting information is prepared for use by those working within the company, its users can question:
- A.
The content of the information
- B.
The level of detail and validity of the information
- C.
The meaning of the information
- D.
All of these answers are correct.
- 4.The public at large would use:
- A.
Specific information about a division of the company
- B.
Specific information about a product line
- C.
Management accounting information
- D.
General purpose financial statements
- 5.The transition of the United States from an agricultural-based economy to a manufacturing-based economy is known as the dawn of:
- A.
Scientific management
- B.
The Institute of Management Accountants
- C.
Permanent employees
- D.
The Industrial Revolution
- 6.According to the text, in the 100 years between 1825 and 1925, how many significant changes altered the nature of management accounting?
- A.
One
- B.
Two
- C.
Three
- D.
Four
- 7.The person responsible for preparing accounting reports for both internal and external decision-makers is the:
- A.
Controller
- B.
Treasurer
- C.
Both A and B are correct
- D.
None of the answers is correct.
- 8.“The process of identifying, measuring, and communicating financial information to managers” is a formal definition of:
- A.
Income tax accounting
- B.
Cost accounting
- C.
Managerial accounting
- D.
Financial accounting
- 9.Management accounting information for a particular company would be the most useful to:
- A.
Lending institutions that have a relationship with the company
- B.
Production managers employed by the company
- C.
Bondholders
- D.
Stockholders
- 10.Financial accounting information should have:
- A.
Predictive value
- B.
A schedule estimating future revenues and costs of the company
- C.
A forward-looking orientation
- D.
A schedule of income and expenses by product line
- 11.Financial accounting information is prepared:
- A.
For internal parties
- B.
On forecast information
- C.
For the firm as a whole
- D.
Using firm's best estimates
- 12.A significant difference between financial and management accounting information is that:
- A.
No rules apply to financial accounting
- B.
Management accounting information must conform with GAAP
- C.
Users can define the format of financial accounting information
- D.
Financial accounting information must conform with GAAP
- 13.The financial information that presents information about various parts of a company is called:
- A.
Financial accounting information
- B.
None of these answers is correct.
- C.
Management accounting information
- D.
Public accounting information
- 14.An example of an internal user of accounting information is a(n):
- A.
Supplier
- B.
Competitor
- C.
Bondholder
- D.
Company engineer
- 15.Traditionally, management accounting information has focused primarily on:
- A.
Profitability
- B.
Solvency
- C.
Productivity
- D.
Liquidity
- 16.Between 1825 and 1925 several significant changes took place in business operations and organizations. The change which did not occur during this time period is:
- A.
The rise of independent contractors
- B.
The rise in permanent employees
- C.
The Industrial Revolution
- D.
Diversification
- 17.Another term used to describe the controller of a company is:
- A.
Bookkeeper
- B.
Accounting clerk
- C.
Chief accountant
- D.
Treasurer
- 18.One characteristic that is unique to financial accounting is that it:
- A.
Focuses on the future
- B.
Has few rules
- C.
Is presented by product line
- D.
Is governed by GAAP
- 19.Another term for "management accounting" that means exactly the same thing is:
- A.
Managerial accounting
- B.
Income tax accounting
- C.
Auditing
- D.
Cost accounting
- 20.Companies began to diversify:
- A.
During the last decade of the nineteenth century
- B.
During the 1960s
- C.
During the first two decades of the twentieth century
- D.
Immediately after World War II
- 21.One criterion of financial accounting information is that it must:
- A.
Contain only future data
- B.
Deal with individual divisions
- C.
Be available as users need it
- D.
Be prepared according to GAAP
- 22.An example of an external user of financial information is a:
- A.
Firm's president
- B.
Marketing manager
- C.
Sales person
- D.
Stockholder
- 23.Which of the following users below would not typically use management accounting information?
- A.
Stockholders
- B.
Marketing managers
- C.
Production supervisors
- D.
Salespersons
- 24.The branch of accounting that provides information fir the firm's internal decision-makers is:
- A.
Tax accounting
- B.
Liquidation accounting
- C.
Financial accounting
- D.
Management accounting
- 25.Accounting information which addresses specific company issues is known as:
- A.
Financial accounting information
- B.
Management accounting information
- C.
Information prepared according to GAAP
- D.
General-purpose information
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