Reference no: EM13331649

1. The primary objective offinancial accounting is”

A) To serve the decision-making needs ofinternal users.

B) To provide financial statementto help external users analyze an organization’sactivities

C) To monitor and control companyactivities.

D) To provide information on both thecosts and benefits of looking after products and services.

E) To know what, when, and howmuch to produce.

2. Internal users of accounting information include:

A) Shareholder.

B) Managers.

C) Lenders.

D) Supplies

E) Customers

3. A certified public Accountant

A) Must meet education and experiencerequirements

B) Must pass an examination

C) Must exhibit ethicalcharacter

D) May also be a Certified ManagementAccountant

E) All of these

4. The accounting guidelinethat requires financial statement information to be supported byindependent, unbiased evidence other than someone’s belief oropinion is the:

A) Business entity principle.

B) Monetary unit principle.

C) Going-concern principle.

D) Cost principle.

E) Objectivity principle.

5. A corporation:

A) Is a business legally separate fromits owners.

B) Is controlled by theledger.

C) Has shareholder who haveunlimited liability for the acts of the corporation.

D) Is the same as a limited liabilitypartnership.

E) All of these.

6. Source documents:

A) Include the ledger:

B) Are the sources of theaccounting information

C) Must be in electronic form.

D) Are based on accounting entries

E) Include the chart ofaccounts.