ACCT 1A&B: Fundamentals of Accounting
BCSV
Fundamentals of Accounting I
Introduction to Accounting
Multiple Choice.
Choose the letter of the best answer.
Use the following choices to answer nos. 1 – 3:
A. Defined by the Accounting Standards Council (ASC)
B. Defined by the American Institute of Certified Public Accountants (AICPA) Committee on
Accounting Terminology
C. Defined by the Board of Accountancy (BOA)
D. Defined by the American Accounting Association (AAA)
1. Accounting is the art of recording, classifying and summarizing in a significant manner and in
terms of money, transactions and events which are in part at least of a financial character and
interpreting the results thereof.
2. Accounting is a service activity. Its function is to provide quantitative information, primarily
financial in nature, about economic entities, that is intended to be useful in making economic
decision.
3. Accounting is the process of identifying, measuring and communicating economic information to
permit informed judgment and decision by users of the information.
4. All of the following describe accounting, except
A. A service activity
B. An information system
