Question

1. Primary objective of financial reporting is to provide information:

a) To the federal government b) About the profitability of the business c) Regarding the cash flows of the business d) Useful for making investment decisions and for assessing management's stewardship

2. Accounts are grouped in a book called the

a) Trial balance b) Chart of accounts c) Journal d) Ledger

3. An organization's list of all its accounts and the related account numbers is called a:

a) Balance sheet b) Chart of accounts c) Ledger d) Trial balance

4. An important fact related to accrual accounting is that:

a) Adjusting entries are not required. b) Revenue is recorded when cash is received c) Expenses are recorded when incurred d) Revenue is recorded when cash is received and expenses are recorded when incurredt

5. The concept that requires that accountants record depreciation expense on equipment is the:

a) Historical cost measurement method b) Time-period concept c) Revenue recognition principle d) Matchingconcept he concept that assists accountants in determining how often to prepare financial reports is the: Historical cost measurement method Time-period concept Revenue recognition principle Matching concept

Answer 1

1. d) Useful for investment decision making and for assessing management's stewardship

2. d) Ledger

3. b) Chart of accounts

4. c) Expenses are recorded when incurred

5. d) Matching concept

6. Time period concept