Which of the following is not a characteristic or limitation of the kind of information that financial reporting by business enterprises can provide?

	The information results in approximate, rather than exact, measures.
	The information largely reflects the financial effects of transactions that have already happened.
	The information is provided and used at a cost.
	All of these are characteristics or limitations of the kind of information that financial reporting by business enterprises can provide

The objectives of financial reporting for nonbusiness enterprises:

	are exactly the same as those for business enterprises.
	focus on providing information for resource providers, rather than investors.
	have more of an internal utilization rather than external reporting focus.
	do not give consideration to the cost of providing information.

Cost accounting is a subset of which of the following?

	Internal auditing.
	Public auditing.
	Cost analysis.
	Managerial accounting.

Which of the following is true about the International Accounting Standards Board (IASB)?

	The IASB has been working with the FASB in recent years to achieve convergence of International Financial Reporting Standards (IFRS) and U.S. GAAP.
	The goal of the IASB is to develop a single set of high quality, understandable, enforceable, and globally accepted financial reporting standards based upon clearly articulated principles.
	The SEC has delegated full authority to the IASB to be the accounting standards setting body in the United States.
	All of these are correct.
	Only the IASB has been working with the FASB in recent years to achieve convergence of International Financial Reporting Standards (IFRS) and U.S. GAAP and the goal of the IASB is to develop a single set of high quality, understandable, enforceable, and globally accepted financial reporting standards based upon clearly articulated principles are correct.

The provisions of the Sarbanes-Oxley Act of 2002 had the following components:

	Enforce auditing.
	Attestation.
	Quality control.
	None of these are provisions.
	Enforce auditing, Attestation and Quality control are correct.

Which of the following entities would not require accounting information pertaining to their economic activities?

	Social clubs.
	Not-for-profit entities.
	State governments.
	All of these require accounting information.
	None of these requires accounting information.

Major classifications of accounting activity would not include:

	financial accounting, internal auditing, public accounting.
	internal auditing, governmental accounting, managerial accounting.
	financial accounting, national accounting, cost accounting.
	auditing, income tax accounting, governmental accounting.

The officer of a corporation responsible for the firm's published financial statements would be most concerned about pronouncements of the:

	FASB.
	AICPA.
	GASB.
	SEC.
	IRS.

Which of the following is not an example of a decision or informed judgment that a potential investor would make from accounting information?

	Future profitability based on past profitability.
	Probability of success of a new product development.
	A forecast of dividends.
	Assessment of risk that a company may have more debt than it can repay if the economy enters a recession.