Chapter 1

Question 1

Which of the following is NOT a reason for the integration of worldwide accounting standards?
- The integration of a global economy
- The theoretical necessity of a common set of accounting standards
- The increased efficiency of financial markets
- Need to evaluate investments across the world

Answer 1

The theoretical necessity of a common set of accounting standards

Question 2

The international accounting standards board parentheses (IASB) is charge with developing worldwide, accounting practices? true or false 

Answer 2

True

Question 3

With the current state of information technology, investors outside of company are now allowed access to a companies internal database of financial information and do their own customized analysis of a firms performance. True or false.

Answer 3

False

Question 4

Increased federal oversight of the audit process resulted from the passage of the following act of Congress:
- Sarbane Oxley act
- Financial reports act
- Access to high standards act
- AGOA ACCELERATION ACT

Answer 4

Sarbane Oxley act

Question 5

The emphasis in financial accounting is on which of the following external user groups?
- investors and creditors
- Educators
- Management
- certified public accountants

Answer 5

Investors and creditors

Question 6

The primary internal group that uses accounting information is
- Management
- Investors
- government agencies
- competitors

Answer 6

Management

Question 7

Internal reports are generally used by
- Lenders
- Management
- Suppliers
- Employees

Answer 7

Management

Question 8

Which of the following is NOT an external user of financial Information?
- Suppliers
- Customers
- competitors
- Management

Answer 8

Management

Question 9

Which of the following is NOT true of the financial accounting standards board (FASB)?
- it seeks consistency for its proposed standards
- it consists of seven full-time members
- It has no legal power to enforce the standards it sets
- It is a government agency

Answer 9

It is a government agency

Question 10

Generally accepted accounting principles are:
- Natural laws
- Based on scientific proofs
- Developed by accounting rule makers
- None of these are correct

Answer 10

Developed by accounting rule makers

Question 11

The initials GAAP stand for
- generally accepted accounting principles
- Generally applied accounting procedures
- Generally accepted accounting practices
- General accounting administration practices

Answer 11

Generally accepted accounting principles

Question 12

The current standard setting board for accounting in the private sector is:
- Financial accounting standards board (FASB)
- Securities and exchange commission (SEC)
- American accounting Association (AAA)
- International accounting standards board (IASB)

Answer 12

Financial accounting standards board (FASB)

Question 13

The initial CPA stand for
- Certified professional appraiser
- certified public accountant
- certified professional accountant
- certified public auditor

Answer 13

Certified public accountant

Question 14

Which of the following is the government government agency that stipulates the rules and regulations that govern the collection of taxes in the United States?
- Internal revenue service
- Federal accounting standards board
- American Institute of Certified Public Accountants
- Securities and exchange commission

Answer 14

Internal revenue service

Question 15

Which of the following is NOT a service typically provided by large public accounting firms?
- making management decisions
- Establishing accounting systems
- Performing audits
- Redesigning operating procedures

Answer 15

Making management decisions

Question 16

Standards established by the international accounting standards board are referred to as
- International financial accounting standards
- International auditing standards
- Generally accepted accounting standards
- International financial reporting standards

Answer 16

International financial reporting standards

Question 17

The organization that develops worldwide accounting standards is the:
- International committee and accounting standards (ICAS)
- International accounting standards committee (IASC)
- International accounting standards board (IASB)
- International board of accounting standards (IBAS)

Answer 17

International accounting standards board (IASB)