Accounting Quiz

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NEED IN 2 HOURS

 

An advantage of the corporate form of business is that

 

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[removed] its owner’s personal resources are at stake.

 

[removed] its ownership is easily transferable via the sale of shares of stock.

 

[removed] it is simple to establish.

 

[removed] it has limited life.

 

Which of the following is the best definition of an internal user of accounting information?

 

[removed] Managers who use accounting information to plan, organize, and run a business.

 

[removed] Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits.

 

[removed] Investors who use accounting information to decide whether to buy or sell stock.

 

[removed] Creditors like banks that use accounting information to evaluate the risk of lending money.

 

Which of the following is the most appropriate and modern definition of accounting?

 

[removed] The information system that identifies, records, and communicates the economic events of an organization to interested users.

 

[removed] A means of collecting information.

 

[removed] Electronic collection, organization, and communication of vast amounts of information.

 

[removed] The interconnected network of subsystems necessary to operate a business.