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Accounting - Samples
Sample Test for Financial Accounting
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
____ 1. In the annual report, where would a financial statement reader find out if the company’s financial statementsgive a fair depiction of its financial position and operating results?
a. Notes to the financial statements
b. Management discussion and analysis section
c. Balance sheet
d. Auditor’s report
e. None of the options listed
Principles of Financial Accounting
What is Accounting?
Accounting – a process of identifying, analyzing, recording, summarizing, and reporting economic information to decision makers in the form of financial statements.
Financial accounting – focuses on the specific needs of decision makers external to the organization (e.g. stockholders, suppliers, banks, and government agencies).
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