Multiple choice
Which of the below users is considered as an Internal user?
Accounting involves only adding and subtracting numbers.
False
Suppliers
A. To determine the creditworthiness of the organization.
What are two broad categories of accounting information users?
Internal and external.
Accountants must have strong _____ to visualize, communicate, and solve both complex and uncomplicated problems.
A. math skills
B. analytical skills
C. organizational skills
D. communication skills
B. analytical skills
Generally, ethical behavior applies at all times, in any function in business.
True
Employees
A. To determine the creditworthiness of the organization.
B. To determine if the customer has enough funds to pay its purchases
C. Determine the correct amount of tax in its tax returns for any business or individual.
D. For assessing the company's profitability and its consequence on their future remuneration and job security.
E. For analyzing the feasibility of investing in the company.
F. For analyzing the viability and profitability of their investment and determining any future course of action.
D. For assessing the company's profitability and its consequence on their future remuneration and job security.
What are the requirements for a public accountant to become a certified public accountant?
Education
Experience
Examination
A. Internal Auditor
B. treasurer
C. controller
C. Controller
An accountant only tracks the expenses of a business to make sure the business stays within a budget
False
Tax Authorities
A. To determine the creditworthiness of the organization.
B. To determine if the customer has enough funds to pay its purchases
C. Determine the correct amount of tax in its tax returns for any business or individual.
D. For assessing the company's profitability and its consequence on their future remuneration and job security.
E. For analyzing the feasibility of investing in the company.
F. For analyzing the viability and profitability of their investment and determining any future course of action.
C. Determine the correct amount of tax in its tax returns for any business or individual.
What is the name of the document that is used to present financial data to the users and explain the purpose of using it?
Report
It helps the user know how the business performs and makes financial decisions.
A. CPAs only work in the private sector
A Certified Public Accountant, or CPA, must pass a national test, but no specific experience is necessary to become certified.
False
Lenders
A. To determine the creditworthiness of the organization.
B. To determine if the customer has enough funds to pay its purchases
C. Determine the correct amount of tax in its tax returns for any business or individual.
D. For assessing the company's profitability and its consequence on their future remuneration and job security.
E. For analyzing the feasibility of investing in the company.
F. For analyzing the viability and profitability of their investment and determining any future course of action.
A. To determine the creditworthiness of the organization.
State the reason why accountants need to uphold ethical principles.
Preserve the integrity of financial reports and information. To maintain public trust, and comply with legal and professional standards.
Objectivity is an important ethical value in the accounting profession. Accountants must remain free _____________ when conducting accounting services.
A. Questionable business relationships
Financial accounting prepares reports for people outside the company.
True
Owner
A. To determine the creditworthiness of the organization.
B. To determine if the customer has enough funds to pay its purchases
C. Determine the correct amount of tax in its tax returns for any business or individual.
D. For assessing the company's profitability and its consequence on their future remuneration and job security.
E. For analyzing the feasibility of investing in the company.
F. For analyzing the viability and profitability of their investment and determining any future course of action.
F. For analyzing the viability and profitability of their investment and determining any future course of action.
List the 4 codes of conduct that an accountant must uphold, and explain one of them.
Integrity - Involves acting honestly, truthfully, and ethically in all aspects of their work.
Objectivity- Disclose any personal or professional relationships that may compromise their ability to act in the best interest of their clients or employers.
Confidentiality- Safeguarding client data, trade secrets, and any proprietary information that is entrusted to them.
Professional Competence - Enhance their knowledge and skills by staying informed about the latest accounting regulations and ethical guidelines.