Question 1 (1 point)

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General-purpose financial statements are the product of

Question 1 options:

	Neither financial nor managerial accounting
	Managerial accounting
	Financial accounting
	Both financial and managerial accounting

Question 2 (1 point)

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Users of financial reports include all of the following except

Question 2 options:

	Creditors
	Government agencies
	Unions
	All of these are users

Question 3 (1 point)

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Which of the following represents a form of communication through financial reporting but not through the financial statements?

Question 3 options:

	Income statement
	President's letter
	Notes to the financial statements
	Balance sheet

Question 4 (1 point)

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Which of the following is not a major challenge facing the accounting profession?

Question 4 options:

	Timeliness
	Forward-looking information
	Accounting for hard assets
	Nonfinancial measures

Question 5 (1 point)

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Accrual accounting is used because

Question 5 options:

	It recognizes revenues when cash is received and expenses when cash is paid
	Cash flows are considered less important
	It provides a better indication of ability to generate cash flows than the cash basis
	It is more accurate than cash basis accounting

Question 6 (1 point)

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One objective of financial reporting is to provide

Question 6 options:

	Information about the liquidation values of the resources of the enterprise
	Information about the investors in the business entity
	Information that will attract new investors
	Information that is useful in assessing cash flow prospects

Question 7 (1 point)

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Which of the following organizations is responsible for setting accounting standards in the United States?

Question 7 options:

	National Association of Accountants
	Congress
	Internal Revenue Service
	Financial Accounting Standards Board

Question 8 (1 point)

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A characteristic of generally accepted accounting principles include the following

Question 8 options:

	Acceptance requires a vote of Certified Public Accountants
	Common set of standards and principles
	Practices that have been used for at least a year by all industry members
	Standards and principles based on federal statutes

Question 9 (1 point)

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Companies that are listed on a stock exchange are required to submit their financial statements to

Question 9 options:

	APB
	FASB
	AICPA
	SEC

Question 10 (1 point)

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Companies that are listed on a stock exchange are required to submit their financial statements to

Question 10 options:

	APB
	AICPA
	SEC
	FASB