Question

1. General-purpose financial statements are the product of 

a. financial accounting. 

b. managerial accounting. 

c. both financial and managerial accounting. 

d. neither financial nor managerial accounting. 

2. Users of financial reports include all of the following except 

a. creditors. b. government agencies. c. unions. d. All of these are users. 

3. Which of the following represents a form of communication through financial reporting but not through financial statements? 

a. Balance sheet. b. President's letter. c. Income statement. d. Notes to financial statements. 

4. The process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organization's operations is called 

a. financial accounting. b. managerial accounting. c. tax accounting d. auditing. 

5. How does accounting help the capital allocation process attract Investment capital? 

a.Provides timely, relevant information. b. Encourages innovation. c. Promotes productivity. d. a and b above.

Answer 1