Title: Accounting in Business
Course: Demo 1

Q: Accounting allows businesses to communicate information about a company’s financial performance to:
- internal users
- external users
- the government
A: internal users; external users; the government

Q: In accounting, GAAP stands for:
- global authentic accounting practices.
- governance of American accounting processes.
- generally accepted accounting principles.
A: generally accepted accounting principles.

Q: The FASB (Financial Accounting and Standards Board) created a set of rules and guidelines for the reporting of financial information or Generally Accepted Accounting Principles (GAAP) that financial accountants must follow when preparing a company’s financial statements. Among the reasons that the GAAP were developed are to:
- make certain that the information in the statements is accurate
- allow stakeholders to make comparisons between the financial statements of different companies in the same industry
- control how much profit a company can report at the end of the fiscal year
A: make certain that the information in the statements is accurate; allow stakeholders to make comparisons between the financial statements of different companies in the same industry

Q: Accounting is more than simply calculating the net profit or loss from business operations. Accounting is actually a process that involves:
- measuring business activities.
- interpreting financial information.
- assigning responsibility for collecting financial information within an organization.
A: measuring business activities.; interpreting financial information.

Q: ________ provides individuals within an organization with the financial information needed to make good business decisions.
- financial accounting
- managerial accounting
- tax accounting
A: financial accounting; managerial accounting

Q: Managerial accountants:
- provide managers within the organization with reports to make good business decisions.
- provide information to managers in different business functions.
- create the company’s financial statements that are submitted to government agencies such as the Internal Revenue Service.
A: provide managers within the organization with reports to make good business decisions.; provide information to managers in different business functions.

Q: Financial accountants:
- provide information to external entities that allows them to evaluate business performance.
- summarize the company’s financial activities in a way that allows managers to make decisions.
- have a primary focus on providing managers within the organization with reports to make good business decisions.
A: provide information to external entities that allows them to evaluate business performance.; summarize the company’s financial activities in a way that allows managers to make decisions.

Q: Business owners use financial information prepared by financial accountants for decision making, but other stakeholders have an interest in being able to assess the financial health of the business. These stakeholders include(s):
- potential investors.
- employees.
- suppliers.
A: potential investors.; employees.; suppliers.

Q: Instead of following GAAP, companies outside the U.S. are more likely to follow the:
- World Bank guidelines for financial reporting.
- Financial Accounting Standards Board.
- International Financial Reporting Standards.
A: International Financial Reporting Standards.