Quiz 1 Set A
1. Which of the following make up a company’s cash flow prospect – return of investment and
return on investment
2. Which of the following involves the determining the determining the cost of certain business
activities and interpreting cost information – cost accounting
3. Accountants who are licensed to serve the general public rather than a particular company are
known as – certified public accountants
4. The financial statements reports the excess of a company’s revenues over its expenses –
statement of comprehensive income
5. Enhances the integrity of accounting information except – institutional features can not add
significantly to the integrity
6. The general-purpose assumption of externally reported information relates to – the notion that
‘one size fits all.’
7. An accountant has the responsibility to coordinate the annual budget processes of the business
corporation she works for. In which of the following areas of accounting is she most likely to be
employed – managerial accounting
8. Private accounting as a sub discipline of accounting includes – management accounting
9. What is a key product of accounting – financial statements
10. Not one of the four primary financial statements – statement of retained earnings
11. Can be considered as an external user – owner
12. Generally accepted accounting principles are – developed by accounting rule makers
13. Accounting is defined as an information system that provides reports to stakeholders about
the economic activities and condition of a business
14. Not typically true of accounting information – the information relates to future time periods
15. Not a typical source of monetary resources used by business enterprise as capital – employees
16. Not a service typically provided by large public accounting firms – making management
decisions
17. Corporations differ from proprietorships and partnerships in several ways. One difference is that
– people can invest in corporation with limited personal risk
18. The recording of financial transactions and events manually or electronically is called which of
the following – bookkeeping
19. Not one of the ways that technology has changed the way accounting is done – technology is
able to perform the mechanics of accounting therefore, people are not required to understand
the mechanics
20. Provides the guidance for determining what accounting treatment where a Philippine Financial
Reporting Standards (PFRS) or a Philippine Accounting Standards (PAS) does not provide a
specific guideline – conceptual framework
21. A manufacturing business is an organization that changes basic inputs into products that are
sold to individual customers
22. Not part of the functions of the accounting system – preparing financial statements that are
favorable to the data users
23. Business use accounting systems to Evaluate the performance and health of the business,
analyze transactions, handle routine bookkeeping tasks
24. An accounting system is cost-effective when it – produces information that is more valuable
than the cost of obtaining the information
25. True regarding business transactions – all business transactions can be stated in terms of
changes in the elements of the accounting equation
26. For management accountants, avoiding conflicts of interest by refusing compromising gifts and
favors is included in the code of ethics requirement of – integrity
27. Which of the following statements best describes generally accepted accounting principles –
they have been developed on the basis of such factors as usage and practical necessity
28. Primary internal group that uses accounting information – management
29. Objectives of financial accounting to guide external decision makers building from the general to
the specific except which statement – to provide specific information about its production
plans to suppliers so that the producer can meet its production schedule
30. Not a step in the decision making process – select the option that will result in the greatest
financial increase
31. The professional organization that serves the needs of accountants who work for a single
company is the – Philippine association of management accountants (PAMA)
32. Accounting cycle includes all except – interpreting
33. The organization that develops worldwide accounting standards is the – International
Accounting Standards Board (IASB)
34. Not an important aspect of management accounting – product design
