Podcast
Questions and Answers
What determines which pieces of the financial statements a user finds most useful?
What determines which pieces of the financial statements a user finds most useful?
- The user's goal (correct)
- The company's profitability
- The company's size
- The company's industry
Which standard must a publicly traded U.S. company follow in addition to GAAP?
Which standard must a publicly traded U.S. company follow in addition to GAAP?
- Securities and Exchange Commission (SEC) guidelines (correct)
- International Financial Reporting Standards (IFRS)
- Financial Accounting Standards Board (FASB)
- Internal Revenue Service (IRS) regulations
When is it expected that all public U.S. companies will report using IFRS rules?
When is it expected that all public U.S. companies will report using IFRS rules?
- Eventually (correct)
- Within the next 5 years
- Never
- Within the next 2 years
What type of business organization has the advantage of reduced regulation and lower taxes compared to corporations?
What type of business organization has the advantage of reduced regulation and lower taxes compared to corporations?
What are the underlying rules used when recording financial information for a business similar to?
What are the underlying rules used when recording financial information for a business similar to?
What must the accounting equation always equal?
What must the accounting equation always equal?
Which type of accounting provides information for external decision-makers?
Which type of accounting provides information for external decision-makers?
What is the purpose of the accounting equation?
What is the purpose of the accounting equation?
Who are considered users of financial information?
Who are considered users of financial information?
Which organization governs the accounting profession?
Which organization governs the accounting profession?
Which type of business organization is characterized by a single owner who has unlimited liability?
Which type of business organization is characterized by a single owner who has unlimited liability?
What is the primary function of financial statements?
What is the primary function of financial statements?
What are the main goals of Generally Accepted Accounting Principles (GAAP)?
What are the main goals of Generally Accepted Accounting Principles (GAAP)?
Which of the following is considered an asset?
Which of the following is considered an asset?
What is the significance of equity in accounting?
What is the significance of equity in accounting?
Which of the following is NOT an example of equity?
Which of the following is NOT an example of equity?
In accounting, what do liabilities primarily represent?
In accounting, what do liabilities primarily represent?
Which term best describes economic resources that benefit a business in the future?
Which term best describes economic resources that benefit a business in the future?
