14 Chapters MCQChapter 11. The fun cti ons of an acco un ti ng system in elude all of the follow ing except to:a. gather marketi ng data.b. han dle rout ine bookkeep ing tasks.c. structure in formati on so that it can be used to evaluate performa nee of a bus in ess.d. an alyze tran sacti ons.2 Accounting information is useful for several kinds of decisions. For which decision situation would acco un ti ng in formatio n NOT be useful?a. Ban kers evaluati ng the risk in ess of loa ns.b. Corporate man agers con troll ing costs.c. Product ion man agers evaluat ing the quality of materials used in manu facturi ng.d. Corporate managers setting prices.3 The primary users of exter nal finan cial reports are:a. those who direct day-to-day operati ons of a bus in ess en terprise.b. in dividuals who have an econo mic in terest in the firm but who are not part of man ageme nt.c. man agers of an en terprise who pla n, i mpleme nt pla ns, and con trol costs.d. none of the above.4 Which primary finan cial stateme nt shows a bus in ess en terprises resources, obligati ons, and equities?a. Stateme nt of cash flowsb. Balance sheetc. Income statementd. Statement of retained earnings5 Which primary financial statement shows a business enterprises excess of revenues over expenses?a. Statement of cash flowsb. Balance sheetc. Income statementd. Statement of retained earnings6 Which of the following is NOT true of the Securities and Exchange Commission (SEC)?a. The SEC is charged with protecting investors from losing money.b. Congress has given the SEC specific legal authority to establish accounting standards.c. As a result of the accounting scandals of 2001-2002, the SEC was given more authority to set standards.d. The SEC could take over the role of standard setting in accounting if the FASB loses credibility.7 Which of the following is NOT true regarding the International Accounting Standards Board (IASB)?a. IASB standards are gaining increasing acceptance throughout the world.b. The purpose of the IASB is to harmonize conflicting accounting standards of various countries.c. The accounting standards produced by the IASB are referred to as International Financial Reporting Standards (IFRSs) Note: the 200 country reference was not cited in the text.d. The IASB standards are accepted in the United States.8 Several organizations have developed codes of ethics for accountants. Which of the following organizations did NOT develop a code of ethics for accountants?a. American Institute of Certified Public Accountants (AICPA)b. Institute of Management Accountants (IMA)c. Securities Exchange Commission (SEC)d. All of the above developed a code of ethics for accountants.9 Technology has impacted accounting in many ways. Which of the following is NOT a change in accounting due to technology?a. Technology has replaced judgment.b. Technology has allowed users access to more than just summarized data.c. Technology allows more detailed information to be gathered.d. Technology has reduced the likelihood of errors in accounting data.Chapter 21.Obligations to pay cash, transfer other assets, or provide services are:a. assets.b. liabilities.c. equities.d. expenses.B2 The interrelationships among the financial statements is called:b. articulation.a. disclosure.c. recognition.d. reconciliation.3 The statement of financial position is also known as the:a. statement of cash flows.b. balance sheet.c. income statement.d. retained earnings statement.4 Which of the following is NOT normally considered to be an asset?a. Retained earningsb. Cashc. Buildingsd. Accounts receivable5 If a company has $15,000 in assets and $10,000 in equities, then liabilities are:a. $25,000.b. $10,000.c. $5,000.d. $0.6 Assets consumed through business operations are called:b. expenses.a. liabilities.c. equities.d. net income.7 Gross profit is calculated as:a. Sales - Cost of goods sold.b. Sales - Operating expenses.c. Sales - All expenses.d. Sales - Income tax expense.8 When preparing a statement of cash flows, activities associated with buying and selling assets are:a. operating activities.b. investing activities.c. financing activities.d. revenue activities.9 If a corporation has assets of $250,000, liabilities of $70,000, and capital stock of $120,000, what is the amount of retained earnings?a. $30,000b. $0c. $60,000d. $140,00010 The idea that the business will continue to operate for the foreseeable future is known as the:a. arms-length transaction assumption.b. entity concept.c. going concern assumption.d. monetary measurement concept.11 The idea that a business is considered to be separate from its individual owners is known as the:a. arms-length transaction assumption.b. entity concept.c. going concern assumption.d. monetary measurement concept.12 In or