This document contains 20 multiple choice questions about introductory accounting concepts. It covers topics such as the purpose of financial and managerial accounting, the different types of business organizations (for-profit, not-for-profit, governmental), how businesses raise capital, accounting careers and certifications, and the roles and responsibilities of accountants. The questions are designed to test students' basic understanding of foundational accounting principles and terminology.

1. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
A. Wall Street
B. business
C. Main Street
D. financial statements

2. 2.
LO 1.2Financial accounting information ________.
A. should be incomplete in order to confuse competitors
B. should be prepared differently by each company
C. provides investors guarantees about the future
D. summarizes what has already occurred

3. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
A. lenders such as bankers
B. governmental agencies such as the IRS
C. employees of a business
D. potential investors

4. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
A. bankers
B. investors
C. competitors of the business
D. managers

5. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
A. preparing external financial statements in compliance with GAAP
B. deciding whether or not to use automation
C. making equipment repair or replacement decisions
D. measuring costs of production for each product produced

6. 6.
LO 1.3Which of the following is not true?
A. Organizations share a common purpose or mission.
B. Organizations have inflows and outflows of resources.
C. Organizations add value to society.
D. Organizations need accounting information.

7. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
A. for-profit
B. not-for-profit
C. manufacturing
D. retail

8. 8.
LO 1.3Which of the following is not an example of a retailer?
A. electronics store
B. grocery store
C. car dealership
D. computer manufacturer
E. jewelry store

9. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
A. has a primary purpose of making a profit
B. has a primary purpose of using taxpayer funds to provide services
C. produces goods for sale to the public
D. has regular shareholder meetings

10. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
A. public library
B. community foundation
C. university
D. local movie theater

11. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
A. creditors
B. lenders
C. employees
D. community residents
E. a business in another industry

12. 12.
LO 1.4Stockholders can best be defined as which of the following?
A. investors who lend money to a business for a short period of time
B. investors who lend money to a business for a long period of time
C. investors who purchase an ownership in the business
D. analysts who rate the financial performance of the business

13. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
A. publicly traded companies
B. not-for-profit businesses
C. governmental agencies
D. privately held companies
E. government-sponsored entities

14. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
A. borrowing from lenders
B. selling ownership shares
C. profitable operations
D. tax refunds

15. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
A. governmental agencies
B. investors
C. creditors and lenders
D. competitors

16. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
A. written communication
B. verbal communication
C. ability to work independently
D. analytical thinking
E. extensive computer programing background

17. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
A. bachelor’s degree
B. master’s degree
C. Certified Public Accountant (CPA)
D. Certified Management Accountant (CMA)
E. only a high school diploma

18. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
A. auditing
B. recording and tracking costs
C. tax compliance and planning
D. consulting
E. purchasing direct materials

19. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
A. corporations
B. public accounting firms
C. governmental entities
D. universities

20. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
A. Certified Management Accountant (CMA)
B. Certified Internal Auditor (CIA)
C. Certified Public Accountant (CPA)
D. Certified Financial Planner (CFP)

21. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
E. Wall Street
F. business
G. Main Street
H. financial statements

22. 2.
LO 1.2Financial accounting information ________.
E. should be incomplete in order to confuse competitors
F. should be prepared differently by each company
G. provides investors guarantees about the future
H. summarizes what has already occurred

23. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
E. lenders such as bankers
F. governmental agencies such as the IRS
G. employees of a business
H. potential investors

24. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
E. bankers
F. investors
G. competitors of the business
H. managers

25. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
E. preparing external financial statements in compliance with GAAP
F. deciding whether or not to use automation
G. making equipment repair or replacement decisions
H. measuring costs of production for each product produced

26. 6.
LO 1.3Which of the following is not true?
E. Organizations share a common purpose or mission.
F. Organizations have inflows and outflows of resources.
G. Organizations add value to society.
H. Organizations need accounting information.

27. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
E. for-profit
F. not-for-profit
G. manufacturing
H. retail

28. 8.
LO 1.3Which of the following is not an example of a retailer?
F. electronics store
G. grocery store
H. car dealership
I. computer manufacturer
J. jewelry store

29. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
E. has a primary purpose of making a profit
F. has a primary purpose of using taxpayer funds to provide services
G. produces goods for sale to the public
H. has regular shareholder meetings

30. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
E. public library
F. community foundation
G. university
H. local movie theater

31. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
F. creditors
G. lenders
H. employees
I. community residents
J. a business in another industry

32. 12.
LO 1.4Stockholders can best be defined as which of the following?
E. investors who lend money to a business for a short period of time
F. investors who lend money to a business for a long period of time
G. investors who purchase an ownership in the business
H. analysts who rate the financial performance of the business

33. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
F. publicly traded companies
G. not-for-profit businesses
H. governmental agencies
I. privately held companies
J. government-sponsored entities

34. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
E. borrowing from lenders
F. selling ownership shares
G. profitable operations
H. tax refunds

35. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
E. governmental agencies
F. investors
G. creditors and lenders
H. competitors

36. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
F. written communication
G. verbal communication
H. ability to work independently
I. analytical thinking
J. extensive computer programing background

37. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
F. bachelor’s degree
G. master’s degree
H. Certified Public Accountant (CPA)
I. Certified Management Accountant (CMA)
J. only a high school diploma

38. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
F. auditing
G. recording and tracking costs
H. tax compliance and planning
I. consulting
J. purchasing direct materials

39. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
E. corporations
F. public accounting firms
G. governmental entities
H. universities

40. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
E. Certified Management Accountant (CMA)
F. Certified Internal Auditor (CIA)
G. Certified Public Accountant (CPA)
H. Certified Financial Planner (CFP)

41. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
I. Wall Street
J. business
K. Main Street
L. financial statements

42. 2.
LO 1.2Financial accounting information ________.
I. should be incomplete in order to confuse competitors
J. should be prepared differently by each company
K. provides investors guarantees about the future
L. summarizes what has already occurred

43. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
I. lenders such as bankers
J. governmental agencies such as the IRS
K. employees of a business
L. potential investors

44. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
I. bankers
J. investors
K. competitors of the business
L. managers

45. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
I. preparing external financial statements in compliance with GAAP
J. deciding whether or not to use automation
K. making equipment repair or replacement decisions
L. measuring costs of production for each product produced

46. 6.
LO 1.3Which of the following is not true?
I. Organizations share a common purpose or mission.
J. Organizations have inflows and outflows of resources.
K. Organizations add value to society.
L. Organizations need accounting information.

47. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
I. for-profit
J. not-for-profit
K. manufacturing
L. retail

48. 8.
LO 1.3Which of the following is not an example of a retailer?
K. electronics store
L. grocery store
M. car dealership
N. computer manufacturer
O. jewelry store

49. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
I. has a primary purpose of making a profit
J. has a primary purpose of using taxpayer funds to provide services
K. produces goods for sale to the public
L. has regular shareholder meetings

50. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
I. public library
J. community foundation
K. university
L. local movie theater

51. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
K. creditors
L. lenders
M. employees
N. community residents
O. a business in another industry

52. 12.
LO 1.4Stockholders can best be defined as which of the following?
I. investors who lend money to a business for a short period of time
J. investors who lend money to a business for a long period of time
K. investors who purchase an ownership in the business
L. analysts who rate the financial performance of the business

53. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
K. publicly traded companies
L. not-for-profit businesses
M. governmental agencies
N. privately held companies
O. government-sponsored entities

54. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
I. borrowing from lenders
J. selling ownership shares
K. profitable operations
L. tax refunds

55. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
I. governmental agencies
J. investors
K. creditors and lenders
L. competitors

56. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
K. written communication
L. verbal communication
M. ability to work independently
N. analytical thinking
O. extensive computer programing background

57. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
K. bachelor’s degree
L. master’s degree
M. Certified Public Accountant (CPA)
N. Certified Management Accountant (CMA)
O. only a high school diploma

58. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
K. auditing
L. recording and tracking costs
M. tax compliance and planning
N. consulting
O. purchasing direct materials

59. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
I. corporations
J. public accounting firms
K. governmental entities
L. universities

60. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
I. Certified Management Accountant (CMA)
J. Certified Internal Auditor (CIA)
K. Certified Public Accountant (CPA)
L. Certified Financial Planner (CFP)

61. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
M. Wall Street
N. business
O. Main Street
P. financial statements

62. 2.
LO 1.2Financial accounting information ________.
M. should be incomplete in order to confuse competitors
N. should be prepared differently by each company
O. provides investors guarantees about the future
P. summarizes what has already occurred

63. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
M. lenders such as bankers
N. governmental agencies such as the IRS
O. employees of a business
P. potential investors

64. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
M. bankers
N. investors
O. competitors of the business
P. managers

65. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
M. preparing external financial statements in compliance with GAAP
N. deciding whether or not to use automation
O. making equipment repair or replacement decisions
P. measuring costs of production for each product produced

66. 6.
LO 1.3Which of the following is not true?
M. Organizations share a common purpose or mission.
N. Organizations have inflows and outflows of resources.
O. Organizations add value to society.
P. Organizations need accounting information.

67. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
M. for-profit
N. not-for-profit
O. manufacturing
P. retail

68. 8.
LO 1.3Which of the following is not an example of a retailer?
P. electronics store
Q. grocery store
R. car dealership
S. computer manufacturer
T. jewelry store

69. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
M. has a primary purpose of making a profit
N. has a primary purpose of using taxpayer funds to provide services
O. produces goods for sale to the public
P. has regular shareholder meetings

70. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
M. public library
N. community foundation
O. university
P. local movie theater

71. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
P. creditors
Q. lenders
R. employees
S. community residents
T. a business in another industry

72. 12.
LO 1.4Stockholders can best be defined as which of the following?
M. investors who lend money to a business for a short period of time
N. investors who lend money to a business for a long period of time
O. investors who purchase an ownership in the business
P. analysts who rate the financial performance of the business

73. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
P. publicly traded companies
Q. not-for-profit businesses
R. governmental agencies
S. privately held companies
T. government-sponsored entities

74. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
M. borrowing from lenders
N. selling ownership shares
O. profitable operations
P. tax refunds

75. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
M. governmental agencies
N. investors
O. creditors and lenders
P. competitors

76. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
P. written communication
Q. verbal communication
R. ability to work independently
S. analytical thinking
T. extensive computer programing background

77. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
P. bachelor’s degree
Q. master’s degree
R. Certified Public Accountant (CPA)
S. Certified Management Accountant (CMA)
T. only a high school diploma

78. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
P. auditing
Q. recording and tracking costs
R. tax compliance and planning
S. consulting
T. purchasing direct materials

79. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
M. corporations
N. public accounting firms
O. governmental entities
P. universities

80. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
M. Certified Management Accountant (CMA)
N. Certified Internal Auditor (CIA)
O. Certified Public Accountant (CPA)
P. Certified Financial Planner (CFP)

81. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
Q. Wall Street
R. business
S. Main Street
T. financial statements

82. 2.
LO 1.2Financial accounting information ________.
Q. should be incomplete in order to confuse competitors
R. should be prepared differently by each company
S. provides investors guarantees about the future
T. summarizes what has already occurred

83. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
Q. lenders such as bankers
R. governmental agencies such as the IRS
S. employees of a business
T. potential investors

84. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
Q. bankers
R. investors
S. competitors of the business
T. managers

85. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
Q. preparing external financial statements in compliance with GAAP
R. deciding whether or not to use automation
S. making equipment repair or replacement decisions
T. measuring costs of production for each product produced

86. 6.
LO 1.3Which of the following is not true?
Q. Organizations share a common purpose or mission.
R. Organizations have inflows and outflows of resources.
S. Organizations add value to society.
T. Organizations need accounting information.

87. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
Q. for-profit
R. not-for-profit
S. manufacturing
T. retail

88. 8.
LO 1.3Which of the following is not an example of a retailer?
U. electronics store
V. grocery store
W. car dealership
X. computer manufacturer
Y. jewelry store

89. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
Q. has a primary purpose of making a profit
R. has a primary purpose of using taxpayer funds to provide services
S. produces goods for sale to the public
T. has regular shareholder meetings

90. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
Q. public library
R. community foundation
S. university
T. local movie theater

91. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
U. creditors
V. lenders
W. employees
X. community residents
Y. a business in another industry

92. 12.
LO 1.4Stockholders can best be defined as which of the following?
Q. investors who lend money to a business for a short period of time
R. investors who lend money to a business for a long period of time
S. investors who purchase an ownership in the business
T. analysts who rate the financial performance of the business

93. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
U. publicly traded companies
V. not-for-profit businesses
W. governmental agencies
X. privately held companies
Y. government-sponsored entities

94. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
Q. borrowing from lenders
R. selling ownership shares
S. profitable operations
T. tax refunds

95. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
Q. governmental agencies
R. investors
S. creditors and lenders
T. competitors

96. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
U. written communication
V. verbal communication
W. ability to work independently
X. analytical thinking
Y. extensive computer programing background

97. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
U. bachelor’s degree
V. master’s degree
W. Certified Public Accountant (CPA)
X. Certified Management Accountant (CMA)
Y. only a high school diploma

98. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
U. auditing
V. recording and tracking costs
W. tax compliance and planning
X. consulting
Y. purchasing direct materials

99. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
Q. corporations
R. public accounting firms
S. governmental entities
T. universities

100. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
Q. Certified Management Accountant (CMA)
R. Certified Internal Auditor (CIA)
S. Certified Public Accountant (CPA)
T. Certified Financial Planner (CFP)

101. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
U. Wall Street
V. business
W. Main Street
X. financial statements

102. 2.
LO 1.2Financial accounting information ________.
U. should be incomplete in order to confuse competitors
V. should be prepared differently by each company
W. provides investors guarantees about the future
X. summarizes what has already occurred

103. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
U. lenders such as bankers
V. governmental agencies such as the IRS
W. employees of a business
X. potential investors

104. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
U. bankers
V. investors
W. competitors of the business
X. managers

105. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
U. preparing external financial statements in compliance with GAAP
V. deciding whether or not to use automation
W. making equipment repair or replacement decisions
X. measuring costs of production for each product produced

106. 6.
LO 1.3Which of the following is not true?
U. Organizations share a common purpose or mission.
V. Organizations have inflows and outflows of resources.
W. Organizations add value to society.
X. Organizations need accounting information.

107. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
U. for-profit
V. not-for-profit
W. manufacturing
X. retail

108. 8.
LO 1.3Which of the following is not an example of a retailer?
Z. electronics store
AA. grocery store
BB. car dealership
CC. computer manufacturer
DD. jewelry store

109. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
U. has a primary purpose of making a profit
V. has a primary purpose of using taxpayer funds to provide services
W. produces goods for sale to the public
X. has regular shareholder meetings

110. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
U. public library
V. community foundation
W. university
X. local movie theater

111. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
Z. creditors
AA. lenders
BB. employees
CC. community residents
DD. a business in another industry

112. 12.
LO 1.4Stockholders can best be defined as which of the following?
U. investors who lend money to a business for a short period of time
V. investors who lend money to a business for a long period of time
W. investors who purchase an ownership in the business
X. analysts who rate the financial performance of the business

113. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
Z. publicly traded companies
AA. not-for-profit businesses
BB. governmental agencies
CC. privately held companies
DD. government-sponsored entities

114. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
U. borrowing from lenders
V. selling ownership shares
W. profitable operations
X. tax refunds

115. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
U. governmental agencies
V. investors
W. creditors and lenders
X. competitors

116. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
Z. written communication
AA. verbal communication
BB. ability to work independently
CC. analytical thinking
DD. extensive computer programing background

117. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
Z. bachelor’s degree
AA. master’s degree
BB. Certified Public Accountant (CPA)
CC. Certified Management Accountant (CMA)
DD. only a high school diploma

118. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
Z. auditing
AA. recording and tracking costs
BB. tax compliance and planning
CC. consulting
DD. purchasing direct materials

119. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
U. corporations
V. public accounting firms
W. governmental entities
X. universities

120. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
U. Certified Management Accountant (CMA)
V. Certified Internal Auditor (CIA)
W. Certified Public Accountant (CPA)
X. Certified Financial Planner (CFP)

121. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
Y. Wall Street
Z. business
AA. Main Street
BB. financial statements

122. 2.
LO 1.2Financial accounting information ________.
Y. should be incomplete in order to confuse competitors
Z. should be prepared differently by each company
AA. provides investors guarantees about the future
BB. summarizes what has already occurred

123. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
Y. lenders such as bankers
Z. governmental agencies such as the IRS
AA. employees of a business
BB. potential investors

124. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
Y. bankers
Z. investors
AA. competitors of the business
BB. managers

125. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
Y. preparing external financial statements in compliance with GAAP
Z. deciding whether or not to use automation
AA. making equipment repair or replacement decisions
BB. measuring costs of production for each product produced

126. 6.
LO 1.3Which of the following is not true?
Y. Organizations share a common purpose or mission.
Z. Organizations have inflows and outflows of resources.
AA. Organizations add value to society.
BB. Organizations need accounting information.

127. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
Y. for-profit
Z. not-for-profit
AA. manufacturing
BB. retail

128. 8.
LO 1.3Which of the following is not an example of a retailer?
EE.electronics store
FF.grocery store
GG. car dealership
HH. computer manufacturer
II. jewelry store

129. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
Y. has a primary purpose of making a profit
Z. has a primary purpose of using taxpayer funds to provide services
AA. produces goods for sale to the public
BB. has regular shareholder meetings

130. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
Y. public library
Z. community foundation
AA. university
BB. local movie theater

131. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
EE.creditors
FF.lenders
GG. employees
HH. community residents
II. a business in another industry

132. 12.
LO 1.4Stockholders can best be defined as which of the following?
Y. investors who lend money to a business for a short period of time
Z. investors who lend money to a business for a long period of time
AA. investors who purchase an ownership in the business
BB. analysts who rate the financial performance of the business

133. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
EE.publicly traded companies
FF.not-for-profit businesses
GG. governmental agencies
HH. privately held companies
II. government-sponsored entities

134. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
Y. borrowing from lenders
Z. selling ownership shares
AA. profitable operations
BB. tax refunds

135. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
Y. governmental agencies
Z. investors
AA. creditors and lenders
BB. competitors

136. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
EE.written communication
FF.verbal communication
GG. ability to work independently
HH. analytical thinking
II. extensive computer programing background

137. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
EE.bachelor’s degree
FF.master’s degree
GG. Certified Public Accountant (CPA)
HH. Certified Management Accountant (CMA)
II. only a high school diploma

138. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
EE.auditing
FF.recording and tracking costs
GG. tax compliance and planning
HH. consulting
II. purchasing direct materials

139. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
Y. corporations
Z. public accounting firms
AA. governmental entities
BB. universities

140. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
Y. Certified Management Accountant (CMA)
Z. Certified Internal Auditor (CIA)
AA. Certified Public Accountant (CPA)
BB. Certified Financial Planner (CFP)

141. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
CC. Wall Street
DD. business
EE.Main Street
FF.financial statements

142. 2.
LO 1.2Financial accounting information ________.
CC. should be incomplete in order to confuse competitors
DD. should be prepared differently by each company
EE.provides investors guarantees about the future
FF.summarizes what has already occurred

143. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
CC. lenders such as bankers
DD. governmental agencies such as the IRS
EE.employees of a business
FF.potential investors

144. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
CC. bankers
DD. investors
EE.competitors of the business
FF.managers

145. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
CC. preparing external financial statements in compliance with GAAP
DD. deciding whether or not to use automation
EE.making equipment repair or replacement decisions
FF.measuring costs of production for each product produced

146. 6.
LO 1.3Which of the following is not true?
CC. Organizations share a common purpose or mission.
DD. Organizations have inflows and outflows of resources.
EE.Organizations add value to society.
FF.Organizations need accounting information.

147. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
CC. for-profit
DD. not-for-profit
EE.manufacturing
FF.retail

148. 8.
LO 1.3Which of the following is not an example of a retailer?
JJ. electronics store
KK. grocery store
LL.car dealership
MM. computer manufacturer
NN. jewelry store

149. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
CC. has a primary purpose of making a profit
DD. has a primary purpose of using taxpayer funds to provide services
EE.produces goods for sale to the public
FF.has regular shareholder meetings

150. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
CC. public library
DD. community foundation
EE.university
FF.local movie theater

151. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
JJ. creditors
KK. lenders
LL.employees
MM. community residents
NN. a business in another industry

152. 12.
LO 1.4Stockholders can best be defined as which of the following?
CC. investors who lend money to a business for a short period of time
DD. investors who lend money to a business for a long period of time
EE.investors who purchase an ownership in the business
FF.analysts who rate the financial performance of the business

153. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
JJ. publicly traded companies
KK. not-for-profit businesses
LL.governmental agencies
MM. privately held companies
NN. government-sponsored entities

154. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
CC. borrowing from lenders
DD. selling ownership shares
EE.profitable operations
FF.tax refunds

155. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
CC. governmental agencies
DD. investors
EE.creditors and lenders
FF.competitors

156. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
JJ. written communication
KK. verbal communication
LL.ability to work independently
MM. analytical thinking
NN. extensive computer programing background

157. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
JJ. bachelor’s degree
KK. master’s degree
LL.Certified Public Accountant (CPA)
MM. Certified Management Accountant (CMA)
NN. only a high school diploma

158. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
JJ. auditing
KK. recording and tracking costs
LL.tax compliance and planning
MM. consulting
NN. purchasing direct materials

159. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
CC. corporations
DD. public accounting firms
EE.governmental entities
FF.universities

160. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
CC. Certified Management Accountant (CMA)
DD. Certified Internal Auditor (CIA)
EE.Certified Public Accountant (CPA)
FF.Certified Financial Planner (CFP)

161. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
GG. Wall Street
HH. business
II. Main Street
JJ. financial statements

162. 2.
LO 1.2Financial accounting information ________.
GG. should be incomplete in order to confuse competitors
HH. should be prepared differently by each company
II. provides investors guarantees about the future
JJ. summarizes what has already occurred

163. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
GG. lenders such as bankers
HH. governmental agencies such as the IRS
II. employees of a business
JJ. potential investors

164. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
GG. bankers
HH. investors
II. competitors of the business
JJ. managers

165. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
GG. preparing external financial statements in compliance with GAAP
HH. deciding whether or not to use automation
II. making equipment repair or replacement decisions
JJ. measuring costs of production for each product produced

166. 6.
LO 1.3Which of the following is not true?
GG. Organizations share a common purpose or mission.
HH. Organizations have inflows and outflows of resources.
II. Organizations add value to society.
JJ. Organizations need accounting information.

167. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
GG. for-profit
HH. not-for-profit
II. manufacturing
JJ. retail

168. 8.
LO 1.3Which of the following is not an example of a retailer?
OO. electronics store
PP.grocery store
QQ. car dealership
RR. computer manufacturer
SS.jewelry store

169. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
GG. has a primary purpose of making a profit
HH. has a primary purpose of using taxpayer funds to provide services
II. produces goods for sale to the public
JJ. has regular shareholder meetings

170. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
GG. public library
HH. community foundation
II. university
JJ. local movie theater

171. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
OO. creditors
PP.lenders
QQ. employees
RR. community residents
SS.a business in another industry

172. 12.
LO 1.4Stockholders can best be defined as which of the following?
GG. investors who lend money to a business for a short period of time
HH. investors who lend money to a business for a long period of time
II. investors who purchase an ownership in the business
JJ. analysts who rate the financial performance of the business

173. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
OO. publicly traded companies
PP.not-for-profit businesses
QQ. governmental agencies
RR. privately held companies
SS.government-sponsored entities

174. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
GG. borrowing from lenders
HH. selling ownership shares
II. profitable operations
JJ. tax refunds

175. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
GG. governmental agencies
HH. investors
II. creditors and lenders
JJ. competitors

176. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
OO. written communication
PP.verbal communication
QQ. ability to work independently
RR. analytical thinking
SS.extensive computer programing background

177. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
OO. bachelor’s degree
PP.master’s degree
QQ. Certified Public Accountant (CPA)
RR. Certified Management Accountant (CMA)
SS.only a high school diploma

178. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
OO. auditing
PP.recording and tracking costs
QQ. tax compliance and planning
RR. consulting
SS.purchasing direct materials

179. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
GG. corporations
HH. public accounting firms
II. governmental entities
JJ. universities

180. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
GG. Certified Management Accountant (CMA)
HH. Certified Internal Auditor (CIA)
II. Certified Public Accountant (CPA)
JJ. Certified Financial Planner (CFP)

181. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
KK. Wall Street
LL.business
MM. Main Street
NN. financial statements

182. 2.
LO 1.2Financial accounting information ________.
KK. should be incomplete in order to confuse competitors
LL.should be prepared differently by each company
MM. provides investors guarantees about the future
NN. summarizes what has already occurred

183. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
KK. lenders such as bankers
LL.governmental agencies such as the IRS
MM. employees of a business
NN. potential investors

184. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
KK. bankers
LL.investors
MM. competitors of the business
NN. managers

185. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
KK. preparing external financial statements in compliance with GAAP
LL.deciding whether or not to use automation
MM. making equipment repair or replacement decisions
NN. measuring costs of production for each product produced

186. 6.
LO 1.3Which of the following is not true?
KK. Organizations share a common purpose or mission.
LL.Organizations have inflows and outflows of resources.
MM. Organizations add value to society.
NN. Organizations need accounting information.

187. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
KK. for-profit
LL.not-for-profit
MM. manufacturing
NN. retail

188. 8.
LO 1.3Which of the following is not an example of a retailer?
TT.electronics store
UU. grocery store
VV. car dealership
WW. computer manufacturer
XX. jewelry store

189. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
KK. has a primary purpose of making a profit
LL.has a primary purpose of using taxpayer funds to provide services
MM. produces goods for sale to the public
NN. has regular shareholder meetings

190. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
KK. public library
LL.community foundation
MM. university
NN. local movie theater

191. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
TT.creditors
UU. lenders
VV. employees
WW. community residents
XX. a business in another industry

192. 12.
LO 1.4Stockholders can best be defined as which of the following?
KK. investors who lend money to a business for a short period of time
LL.investors who lend money to a business for a long period of time
MM. investors who purchase an ownership in the business
NN. analysts who rate the financial performance of the business

193. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
TT.publicly traded companies
UU. not-for-profit businesses
VV. governmental agencies
WW. privately held companies
XX. government-sponsored entities

194. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
KK. borrowing from lenders
LL.selling ownership shares
MM. profitable operations
NN. tax refunds

195. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
KK. governmental agencies
LL.investors
MM. creditors and lenders
NN. competitors

196. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
TT.written communication
UU. verbal communication
VV. ability to work independently
WW. analytical thinking
XX. extensive computer programing background

197. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
TT.bachelor’s degree
UU. master’s degree
VV. Certified Public Accountant (CPA)
WW. Certified Management Accountant (CMA)
XX. only a high school diploma

198. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
TT.auditing
UU. recording and tracking costs
VV. tax compliance and planning
WW. consulting
XX. purchasing direct materials

199. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
KK. corporations
LL.public accounting firms
MM. governmental entities
NN. universities

200. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
KK. Certified Management Accountant (CMA)
LL.Certified Internal Auditor (CIA)
MM. Certified Public Accountant (CPA)
NN. Certified Financial Planner (CFP)

201. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
OO. Wall Street
PP.business
QQ. Main Street
RR. financial statements

202. 2.
LO 1.2Financial accounting information ________.
OO. should be incomplete in order to confuse competitors
PP.should be prepared differently by each company
QQ. provides investors guarantees about the future
RR. summarizes what has already occurred

203. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
OO. lenders such as bankers
PP.governmental agencies such as the IRS
QQ. employees of a business
RR. potential investors

204. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
OO. bankers
PP.investors
QQ. competitors of the business
RR. managers

205. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
OO. preparing external financial statements in compliance with GAAP
PP.deciding whether or not to use automation
QQ. making equipment repair or replacement decisions
RR. measuring costs of production for each product produced

206. 6.
LO 1.3Which of the following is not true?
OO. Organizations share a common purpose or mission.
PP.Organizations have inflows and outflows of resources.
QQ. Organizations add value to society.
RR. Organizations need accounting information.

207. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
OO. for-profit
PP.not-for-profit
QQ. manufacturing
RR. retail

208. 8.
LO 1.3Which of the following is not an example of a retailer?
YY. electronics store
ZZ.grocery store
AAA. car dealership
BBB. computer manufacturer
CCC. jewelry store

209. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
OO. has a primary purpose of making a profit
PP.has a primary purpose of using taxpayer funds to provide services
QQ. produces goods for sale to the public
RR. has regular shareholder meetings

210. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
OO. public library
PP.community foundation
QQ. university
RR. local movie theater

211. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
YY. creditors
ZZ.lenders
AAA. employees
BBB. community residents
CCC. a business in another industry

212. 12.
LO 1.4Stockholders can best be defined as which of the following?
OO. investors who lend money to a business for a short period of time
PP.investors who lend money to a business for a long period of time
QQ. investors who purchase an ownership in the business
RR. analysts who rate the financial performance of the business

213. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
YY. publicly traded companies
ZZ.not-for-profit businesses
AAA. governmental agencies
BBB. privately held companies
CCC. government-sponsored entities

214. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
OO. borrowing from lenders
PP.selling ownership shares
QQ. profitable operations
RR. tax refunds

215. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
OO. governmental agencies
PP.investors
QQ. creditors and lenders
RR. competitors

216. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
YY. written communication
ZZ.verbal communication
AAA. ability to work independently
BBB. analytical thinking
CCC. extensive computer programing background

217. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
YY. bachelor’s degree
ZZ.master’s degree
AAA. Certified Public Accountant (CPA)
BBB. Certified Management Accountant (CMA)
CCC. only a high school diploma

218. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
YY. auditing
ZZ.recording and tracking costs
AAA. tax compliance and planning
BBB. consulting
CCC. purchasing direct materials

219. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
OO. corporations
PP.public accounting firms
QQ. governmental entities
RR. universities

220. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
OO. Certified Management Accountant (CMA)
PP.Certified Internal Auditor (CIA)
QQ. Certified Public Accountant (CPA)
RR. Certified Financial Planner (CFP)

221. 1.
LO 1.1Accounting is sometimes called the “language of _____.”
SS.Wall Street
TT.business
UU. Main Street
VV. financial statements

222. 2.
LO 1.2Financial accounting information ________.
SS.should be incomplete in order to confuse competitors
TT.should be prepared differently by each company
UU. provides investors guarantees about the future
VV. summarizes what has already occurred

223. 3.
LO 1.2External users of financial accounting information include all of the
following except ________.
SS.lenders such as bankers
TT.governmental agencies such as the IRS
UU. employees of a business
VV. potential investors

224. 4.
LO 1.2Which of the following groups would have access to managerial accounting information?
SS.bankers
TT.investors
UU. competitors of the business
VV. managers

225. 5.
LO 1.2All of the following are examples of managerial accounting activities except ________.
SS.preparing external financial statements in compliance with GAAP
TT.deciding whether or not to use automation
UU. making equipment repair or replacement decisions
VV. measuring costs of production for each product produced

226. 6.
LO 1.3Which of the following is not true?
SS.Organizations share a common purpose or mission.
TT.Organizations have inflows and outflows of resources.
UU. Organizations add value to society.
VV. Organizations need accounting information.

227. 7.
LO 1.3The primary purpose of what type of business is to serve a particular need in the
community?
SS.for-profit
TT.not-for-profit
UU. manufacturing
VV. retail

228. 8.
LO 1.3Which of the following is not an example of a retailer?
DDD. electronics store
EEE. grocery store
FFF. car dealership
GGG. computer manufacturer
HHH. jewelry store

229. 9.
LO 1.3A governmental agency can best be described by which of the following statements?
SS.has a primary purpose of making a profit
TT.has a primary purpose of using taxpayer funds to provide services
UU. produces goods for sale to the public
VV. has regular shareholder meetings

230. 10.
LO 1.3Which of the following is likely not a type of not-for-profit entity?
SS.public library
TT.community foundation
UU. university
VV. local movie theater

231. 11.
LO 1.4Which of the following is not considered a stakeholder of an organization?
DDD. creditors
EEE. lenders
FFF. employees
GGG. community residents
HHH. a business in another industry

232. 12.
LO 1.4Stockholders can best be defined as which of the following?
SS.investors who lend money to a business for a short period of time
TT.investors who lend money to a business for a long period of time
UU. investors who purchase an ownership in the business
VV. analysts who rate the financial performance of the business

233. 13.
LO 1.4Which of the following sell stock on an organized stock exchange such as the New York
Stock Exchange?
DDD. publicly traded companies
EEE. not-for-profit businesses
FFF. governmental agencies
GGG. privately held companies
HHH. government-sponsored entities

234. 14.
LO 1.4All of the following are sustainable methods businesses can use to raise capital
(funding) except for ________.
SS.borrowing from lenders
TT.selling ownership shares
UU. profitable operations
VV. tax refunds

235. 15.
LO 1.4The accounting information of a privately held company is generally available to all of
the following except for ________.
SS.governmental agencies
TT.investors
UU. creditors and lenders
VV. competitors

236. 16.
LO 1.5Which of the following skills/attributes is not a primary skill for accountants to possess?
DDD. written communication
EEE. verbal communication
FFF. ability to work independently
GGG. analytical thinking
HHH. extensive computer programing background

237. 17.
LO 1.5Which of the following is typically required for entry-level positions in the accounting
profession?
DDD. bachelor’s degree
EEE. master’s degree
FFF. Certified Public Accountant (CPA)
GGG. Certified Management Accountant (CMA)
HHH. only a high school diploma

238. 18.
LO 1.5Typical accounting tasks include all of the following tasks except ________.
DDD. auditing
EEE. recording and tracking costs
FFF. tax compliance and planning
GGG. consulting
HHH. purchasing direct materials

239. 19.
LO 1.5What type of organization primarily offers tax compliance, auditing, and consulting
services?
SS.corporations
TT.public accounting firms
UU. governmental entities
VV. universities

240. 20.
LO 1.5Most states require 150 semester hours of college credit for which professional
certification?
SS.Certified Management Accountant (CMA)
TT.Certified Internal Auditor (CIA)
UU. Certified Public Accountant (CPA)
VV. Certified Financial Planner (CFP)