Practice Questions

MULTIPLE CHOICE $($Unit $1/$CLO$1-$Accounting activities, Users$/$Uses of

Accounting & Ethics$)$

Which of the following is not part of the accounting process?

A$.$ Recording

B$.$ Decision making

C$.$ Identifying

D$.$ Communicating

Which of the following is a part of the identifying process?

A$.$ Select transactions and events

B$.$ Keep chronological log of transactions

C$.$ Analyzing and interpret

D$.$ Prepare reports

The primary objective of financial accounting is to:

A$.$ Serve the decision$-$making needs of internal users.

B$.$ Provide accounting information that serves external users.

C$.$ Monitor and control company activities.

D$.$ Provide information on both the costs and benefits of looking after products

and services.

External users of accounting information include all of the following

except:

A$.$ Shareholders.

B$.$ Customers.

C$.$ Purchasing managers.

D$.$ Government regulators.

Internal users of accounting information include all of the following except:

A$.$ Purchasing managers.

B$.$ Executive

C$.$ Broker

D$.$ Chief Financial Officer $($CFO$)$