Question 1

External users of accounting information do not include:

Accepted Answer

A)  Employees
B)  Government
C)  Potential Investors
D)  Financial InstitutionsE) B) and C)
F) A) and D)

Question 2

Which accounting concept specifies the practice of crediting closing stock to the trading account?

Accepted Answer

A)  Cost
B)  Realization
C)  Going concern
D)  MatchingE) B) and C)
F) A) and B)

Question 3

Financial accounting is primarily concerned with:

Accepted Answer

A)  Recording of financial information relating to activities of the owners of the business enterprise
B)  Providing financial information to assist the management in decision making.
C)  Reporting financial information for external users of accounting reports
D)  Interpretation of financial statementsE) A) and B)
F) A) and C)

Question 4

The income earned but not yet received:

Accepted Answer

A)  Accrued income
B)  Outstanding Income
C)  Unearned Income
D)  noneE) A) and B)
F) A) and C)

Question 5

Which of the following statements about differences between financial and management accounting is incorrect?

Accepted Answer

A)  Management accounting information is prepared primarily for external parties such as stockholders and creditors. financial accounting is directed at internal users.
B)  Financial accounting is aggregated. management accounting is focused on products and departments.
C)  Management accounting pertains to both past and future items. financial accounting focuses primarily on past transactions and events.
D)  Financial accounting is based on generally accepted accounting practices. management accounting faces no similar constraining factors.E) None of the above
F) A) and B)

Question 6

The Convention of Conservatism takes into account

Accepted Answer

A)  All prospective profits and prospective losses.
B)  All prospective profits and leaves out prospective losses.
C)  All prospective losses but leaves out prospective profit.
D)  None of these.E) A) and B)
F) A) and D)

Exam 43: Fundamentals of Accounting: Objectives, Concepts, and Principles

Financial accounting is primarily concerned with:

Correct Answer
verified

Which of the following statements about differences between financial and management accounting is incorrect?

Correct Answer
verified

Which accounting concept specifies the practice of crediting closing stock to the trading account?

Correct Answer
verified

The income earned but not yet received:

Correct Answer
verified

The Convention of Conservatism takes into account

Correct Answer
verified

External users of accounting information do not include:

Correct Answer
verified

Exam 43: Fundamentals of Accounting: Objectives, Concepts, and Principles

Financial accounting is primarily concerned with:

Correct AnswerverifiedShow Answer

Which of the following statements about differences between financial and management accounting is incorrect?

Correct AnswerverifiedShow Answer

Which accounting concept specifies the practice of crediting closing stock to the trading account?

Correct AnswerverifiedShow Answer

The income earned but not yet received:

Correct AnswerverifiedShow Answer

The Convention of Conservatism takes into account

Correct AnswerverifiedShow Answer

External users of accounting information do not include:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified