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    Problem 1-1 Multiple Choice (ACP)

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    Irahq Yarte Torrejos
    This document contains 10 multiple choice questions that test understanding of accounting definitions and concepts. Question 1 defines accounting as a service activity that provides quantitative financial information to aid economic decision making. Question 10 restates the overall objective of accounting as providing quantitative financial information to support economic decision making.

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    Problem 1-1 Multiple Choice (ACP)

    Uploaded by

    Irahq Yarte Torrejos
    565 views11 pages
    This document contains 10 multiple choice questions that test understanding of accounting definitions and concepts. Question 1 defines accounting as a service activity that provides quantitative financial information to aid economic decision making. Question 10 restates the overall objective of accounting as providing quantitative financial information to support economic decision making.

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    Problem 1-1 Multiple Choice (ACP).pptx

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    This document contains 10 multiple choice questions that test understanding of accounting definitions and concepts. Question 1 defines accounting as a service activity that provides quantitative financial information to aid economic decision making. Question 10 restates the overall objective of accounting as providing quantitative financial information to support economic decision making.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    565 views11 pages

    Problem 1-1 Multiple Choice (ACP)

    Uploaded by

    Irahq Yarte Torrejos
    This document contains 10 multiple choice questions that test understanding of accounting definitions and concepts. Question 1 defines accounting as a service activity that provides quantitative financial information to aid economic decision making. Question 10 restates the overall objective of accounting as providing quantitative financial information to support economic decision making.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Problem 1-1 Multiple Choice

    (ACP)
    1. Accounting is a service activity and its function is to provide
    quantitative information, primarily financial in nature, about
    economic entities, that is intended to be useful in making
    economic decision. This accounting definition is given by
    a. Accounting Standard Council
    b. AICPA Committee on Accounting Terminology
    c. American Accounting Association
    d. Board of Accountancy

    Answer: a. ASC
    2. All of the following describe accounting, except

    a. A service activity
    b. An information system
    c. A universal language of business
    d. An exact science rather than art

    Answer: d. An exact science rather than art


    3. The important points made in the definition of accounting
    include all of the following, except

    a. Accounting information is quantitative.


    b. Accounting information is both quantitative and qualitative.
    c. Accounting information is financial in nature.
    d. Accounting information is useful in decision making.

    Answer: b. Accounting information is both quantitative and


    qualitative.
    4. This accounting process is the recognition or the
    nonrecognition of business activities as accountable events.

    a. Identifying
    b. Measuring
    c. Communicating
    d. Reporting

    Answer: a. Identifying
    5. The events that affect the entity and in which other entities
    participate are known as

    a. Internal events
    b. External events
    c. Current events
    d. Obligating events

    Answer: External events


    6. Which of the following statements is incorrect to relation to
    accountable event?

    a. An event is accountable when it has an effect on asset,


    liability or equity.
    b. The subject matter of accounting is the measurement of
    economic resources and obligations.
    c. Only economic activities are emphasized and recognized in
    accounting.
    d. Sociological and psychological matters are quantifiable.

    Answer: d. Sociological and psychological matters are


    quantifiable.
    7. Which is the “measuring” component in the definition of
    accounting?

    a. The recognition or nonrecognition of business activities as


    accountable events.
    b. The assigning of peso amounts to the accountable events.
    c. The preparation and distribution of accounting reports to
    users of accounting information.
    d. The preparation of audit report by CPAs.

    Answer: b. The assigning of peso amounts to the accountable


    events.
    8. The most common financial attribute used in measuring
    financial information is

    a. Historical cost
    b. Current cost
    c. Realizable value
    d. Present value

    Answer: a. Historical cost


    9. The “communicating” process of accounting includes all of the
    following, except

    a. Recording
    b. Classifying
    c. Summarizing
    d. Interpreting

    Answer: d. Interpreting
    10. What is the overall objective of accounting?

    a. To provide the information that the managers of an


    economic entity need to control the operations.
    b. To provide information that the creditors can use in deciding
    whether to grant loans to an entity.
    c. To measure the periodic income of the economic entity.
    d. To provide quantitative financial information about an entity
    that is useful in making economic decision.

    Answer: d. To provide quantitative financial information about


    an entity that is useful in making economic decision.

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