Question 5

To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as:

1. comparable accounting standards
2. accounting rules and principles
3. generally accepted accounting principles
4. financial accounting standards
5. principled accounting procedures

Question 4

Accounting involves the ____ of the financial activities for firms.

1. planning
2. summarizing
3. empowering
4. delegating
5. creation

Question 3

The use of information that is not available to the general public to make profits on securities transactions is called:

1. friendly trading
2. blue-chip trading
3. transactional selling
4. revenue sharing
5. insider trading

Question 2

No matter the size of the business, finance is a critical activity for:

1. accountants, but not for financial managers.
2. profit-seeking, but not for nonprofit organizations.
3. nonprofit organizations, but not for profit-seeking businesses.
4. profit-seeking and nonprofit organizations.