The conceptual framework of accounting defines the elements of the financial statementsGroup of answer choicesTrueFalse

The Conceptual Framework (choose the incorrect statement)Group of answer choicesis concerned with general purpose financial reporitng onlyis not a PFRSprevails over PFRS in cases of conflicts/in the absence of a PFRS, shall be considered by management when making its judgment in developing and applying an accounting policy that results in useful information PreviousNext

Which of these is not one of the key qualities of accounting information? Group of answer choicesRelevanceTimelinessControlReliability

Accounting involves the _____ of the financial activities for firms.Group of answer choicesdelegatingsummarizingcreationempoweringplanning Flag question: Question 2Question 2Tips5 ptsAccounting provides a framework for looking at:Group of answer choicespast performancecurrent financial healthpossible future performancefinancial performances of different firmsall of the above Flag question: Question 3Question 3Tips5 ptsManagerial accounting provides all of the following financial information EXCEPT:Group of answer choicesproduction reportspayroll summariesincome statementsbudgetsmonthly sales records Flag question: Question 4Question 4Tips5 ptsManagerial accounting provides information that would probably be most beneficial to:Group of answer choicesthe IRSfinancial analystsa lending officer of the banka middle manager of the companyshareholders Flag question: Question 5Question 5Tips5 pts_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.Group of answer choicesBookkeeping; Financial accountingFinancial accounting; AuditingAuditing; Managerial accountingExternal accounting; Internal accountingFinancial accounting; Managerial accounting Flag question: Question 6Question 6Tips5 ptsWhich of the following is an example of an asset that might be owned by a minor league baseball team?Group of answer choicessalaries owed to its playersthe cost of getting tickets printedreputation as a winning teamthe price made for advertising on local radioall of these Flag question: Question 7Question 7Tips5 ptsWhich of the following is an example of an intangible asset for a manufacturer of padlocks?Group of answer choicesmoney owed to them by a do-it-yourself superstore chaina patent on titanium lock mechanisma machine for forming the locks out of sheet metala warehouse for storing locksan office for company CEO Flag question: Question 8Question 8Tips5 ptsAnother term for owners' equity is:Group of answer choicesassetsliabilitiesnet worthgross worthgross sales Flag question: Question 9Question 9Tips5 ptsWhich of the following calculations is a formal expression of the accounting equation?Group of answer choicesassets + liabilities = owners' equityassets * liabilities = retained earningsassets - owners' equity = liabilitiesassets = liabilities + owners' equityassets/liabilities = owners' equity Flag question: Question 10Question 10Tips5 ptsIn accounting, every transaction must be recorded as two entries. This system is called:Group of answer choicesaccounting-cycle bookkeepingdouble-entry bookkeepingdual-notation bookkeepingdouble-decker bookkeepingtandem record keeping Flag question: Question 11Question 11Tips5 ptsWhich of the following is the BEST example of a current asset for a university bookstore?Group of answer choicesthe building in which the store is locatedaccounting software used to control store's inventorycredit card charges by book buyersmoney paid for rent and utilitiessalary paid to student employees Flag question: Question 12Question 12Tips5 pts_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash.Group of answer choicesAccounts receivableOwners' net contribution marginsNotes payableMarketable securitiesMarketable receivables Flag question: Question 13Question 13Tips5 ptsAmounts owed to the firm by customers who bought goods and services on credit are called:Group of answer choicesaccounts receivableowners' equitynotes payablemarketable receivablesaccounts payable Flag question: Question 14Question 14Tips5 ptsCurrent assets, such as marketable securities and inventory, usually are expected to be turned into cash within:Group of answer choicesone monthfive yearsone yeareighteen monthstwo years

Accounting information is considered to be relevant when itGroup of answer choicesCan be depended on to represent the economic conditions and events that it is intended to represent.Is capable of making a difference in a decisionIn understandable by reasonably informed users of accounting informationIs verifiable and neutral

Management accounting:Group of answer choicesis bound by the Corporations Act 2001.is more formal than financial accounting.provides less formal, more timely information for decision makers within the organisation.provides information for external users.