1.07 - Accounting - Practice - Questions
1.07 - Accounting - Practice - Questions
7: Practice Questions
Multiple Choice
1.
LO 1.2Accounting is sometimes called the “language of _____.”
A. Wall Street
B. business
C. Main Street
D. financial statements
2.
LO 1.2Financial accounting information ________.
A. should be incomplete in order to confuse competitors
B. should be prepared differently by each company
C. provides investors guarantees about the future
D. summarizes what has already occurred
3.
LO 1.2External users of financial accounting information include all of the following except ________.
A. lenders such as bankers
B. governmental agencies such as the IRS
C. employees of a business
D. potential investors
4.
LO 1.2Which of the following groups would have access to managerial accounting information?
A. bankers
B. investors
C. competitors of the business
D. managers
5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
A. preparing external financial statements in compliance with GAAP
B. deciding whether or not to use automation
C. making equipment repair or replacement decisions
D. deciding whether or not to use automation
6.
LO 1.3Which of the following is not true?
A. Organizations share a common purpose or mission.
B. Organizations have inflows and outflows of resources.
C. Organizations add value to society.
D. Organizations need accounting information.
7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the community?
A. for-profit
B. not-for-profit
C. manufacturing
D. retail
Questions
1.
LO 1.2Research your top five career choices. Identify financial factors that might influence your career choice. The following
websites might be helpful in answering this question.
Occupational Outlook Handbook: https://www.bls.gov/ooh/
National Association of Colleges and Employers: http://www.naceweb.org/
For Netflix, sales is the product of the number of subscribers and the price charged for each subscription. What observations can
you make about the previous three years of Netflix’s sales? Given this data, provide any predictions you can make about the future
financial performance of Netflix. What nonfinancial factors influenced that prediction?
6.
LO 1.2The following chart shows the price of Netflix stock for the six-month period from August 2017 to January 2018.
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