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1. Which of the following does not describe accounting?
   1. Language of business.
   2. Is an end rather than a means to an end.
   3. Useful for decision making.
   4. Used by business, government, nonprofit organizations, and individuals.
2. To understand and use accounting information in making economic decisions, you must understand:
   1. The nature of economic activities that accounting information describes.
   2. The assumptions and measurement techniques involved in developing accounting information.
   3. Which information is relevant for a particular type of decision that is being made.
   4. All of the above.
3. Purposes of an accounting system include all of the following except:
   1. Interpret and record the effects of business transactions.
   2. Classify the effects of transactions to facilitate the preparation of reports.
   3. Summarize and communicate information to decision makers.
   4. Dictate the specific types of business transactions that the enterprise may engage in.
4. External users of financial accounting information include all of the following except:
   1. Investors.
   2. Labor unions.
   3. Line managers.
   4. General public.
5. Objectives of financial reporting to external investors and creditors include preparing information about all of the following except:
   1. Information used to determine which products to produce.
   2. Information about economic resources, claims to those resources, and changes in both resources and claims.
   3. Information that is useful in assessing the amount, timing, and uncertainty of future cash flows.
   4. Information that is useful in making investment and credit decisions.
6. Financial accounting information is characterized by all of the following except:
   1. It is historical in nature.
   2. It sometimes results from inexact and approximate measures.
   3. It is factual, so it does not require judgment to prepare.
   4. It is enhanced by management’s explanation.
7. Which of the following is not a user of internal accounting information?
   1. Store manager.
   2. Chief executive officer.
   3. Creditor.
   4. Chief financial officer.
8. Characteristics of internal accounting information include all of the following except:
   1. It is audited by a CPA.
   2. It must be timely.
   3. It is oriented toward the future.
   4. It measures efficiency and effectiveness.
9. Which of the following are important factors in ensuring the integrity of accounting information?
   1. Institutional factors, such as standards for preparing information.
   2. Professional organizations, such as the American Institute of CPAs.
   3. Competence, judgment, and ethical behavior of individual accountants.
   4. All of the above.
10. The code of conduct of the American Institute of Certified Public Accountants includes requirements in which of the following areas?
    1. The Public Interest.
    2. Objectivity.
    3. Independence.
    4. All of the above.