Accounting exam practice 1

Which of the following groups of companies are all examples of a merchandising business? A. GameStop, Sony, Dell B. Delta Airlines, Marriott, Gap C. Gap, Amazon, NIKE D. GameStop, Best Buy, Gap

All of the following are general-purpose financial statements except A. cash budget B. income statement C. balance sheet D. retained earnings statement

Profit is the difference between A. assets and liabilities B the assets purchased with cash contributed by the owner and the cash spent to operate the business C. the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services D. the incoming cash and outgoing cash

Which of the following is a manufacturing business? A. General Motors B. American Airlines C. Target D. Facebook

Two common areas of accounting that respectively provide information to internal and external users are A. managerial accounting and environmental accounting B. managerial accounting and financial accounting C. financial accounting and tax accounting systems D. forensic accounting and financial accounting

Which of the following groups are considered to be internal users of accounting information? A. employees and managers B. government entities and banks C. employees and customers D. customers and vendors

Which of the following is a service business? A. Microsoft B. Walmart C. Facebook D. Dell Computers

Which of the following best describes accounting? A. is of no use by individuals outside of the business B. records economic data but does not communicate the data to users according to any specific rules C. is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements D. is an information system that provides reports to users regarding economic activities and condition of a business

Which type of accountant typically practices as an individual or as a member of a public accounting firm? A. Certified Internal Auditor B. Certified Management Accountant C. Certified Payroll Professional D. Certified Public Accountant

Financial reports are used by A. investors B. management C. creditors D. All of these choices are correct.