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Multiple Choice Quiz
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1
An information system that identifies, measures, records and communicates relevant, reliable, consistent and comparable information is used to describe:
A)Bookkeeping
B)Managing
C)Accounting
D)Assessing
2
According to the author, the objective of accounting is to help:
A)users interpret financial statements.
B)people make better decisions.
C)owners obtain a bank loan.
D)staff manage cash.
3
The recording of financial transactions and events manually or electronically is called
A)bookkeeping
B)information technology
C)reporting
D)auditing
4
Which of the following statements is FALSE regarding a (sole) proprietorship?
A)A proprietorship has only one owner.
B)A proprietorship is a separate legal entity.
C)The owner is subject to unlimited liability.
D)Income of the proprietorship is taxed on the owner's personal return
5
A partnership
A)is a separate legal entity.
B)enables owners to limit their liability.
C)requires one or more owners.
D)is taxed on the partners' individual income tax return.
6
Louis Florence is the sole owner of Vision Management. He can sell or transfer his ownership to another person without affecting the operations of the business. What is the type of business organization of Vision Management?
A)Sole proprietorship
B)Partnership
C)Cooperation
D)Corporation
7
External user of accounting financial information include all of the following EXCEPT:
A)Shareholders
B)Customers
C)Managers
D)Suppliers
8
Which question BEST describes an external user of accounting information?
A)How can we deliver our products faster?
B)What can we do to provide effective service?
C)Are there ways to increase revenues by 15%?
D)Do loans seem large or unusual?
9
External users of accounting information include:
A)Managers
B)Employees
C)Vice-President
D)Controller
10
Allowing workers time to work for nonprofit organizations, making donations to schools, hospitals, and community projects, sponsoring community programs such as the special Olympics is a part of
A)ethics
B)regulations
C)research and development
D)social responsibility
11
The phase of accounting that deals with collecting and controlling the costs of producing a given product or service is called
A)internal auditing
B)bookkeeping
C)cost accounting
D)general accounting
12
Which of the following accounting opportunities is a process to develop formal plans for an organization’s future activities?
A)financial accounting
B)budgeting
C)auditing
D)cost accounting
13
Which of the following function is NOT part of financial accounting?
A)Statement preparation
B)Budgeting
C)Auditing
D)Criminal investigation (or forensic accounting)
14
Accountants work in many different kinds of organizations. Which of the following statements about these organizations is FALSE?
A)Private accountants are accountants who usually work for a single employer.
B)Public accountants are accountants who provide their services to one client.
C)Tax accountants help taxpayers comply with laws by preparing their tax returns and providing assistance with tax planning for the future.
D)External auditors perform the audit function at the request of the board of directors to protect shareholder interest.







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