1. 1. Businesses use accounting systems to ANS a. Analyze transactions.
b. Handle routine bookkeeping tasks.
c. Evaluate the performance and financial health of the business
2. 1. Which of the following is NOT a function of accounting? ANS a. Executing
sales transactions for organizations.
3. 1. Which of the following is NOT typically true of accounting information?
ANS a. The information relates to future time periods.
4. 1. Which of the following is NOT one of the three primary financial state-
ments? ANS a. Statement of retained earnings.
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, 5. 1. Which of the following financial statements reports a company's re-
sources, obligations, and ownership? ANS Balance sheet
6. 1. Which of the following financial statements reports the excess of a
company's revenues over its expenses? ANS a. Income statement.
7. 1. Which of the following financial statements reports the amount of cash
collected and paid out by a company? ANS a. Statement of cash flows.
8. 1. Which of the following is NOT an external user of accounting informa-
tion? ANS a. Management.
9. 1. The emphasis in financial accounting is to provide financial information
to which of the following user groups? ANS a. Investors and creditors.
10. 1. The current standard setting organization for financial accounting in the
United States is the ANS a. Financial Accounting Standards Board (FASB).
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