PRE-ASSESSMENT: ACCOUNTING FOR DECISION MAKERS

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1. What does accounting focus on? YOUR ANSWER CORRECT ANSWER The impact a business's activities have on its relationships with customers The impact a business's activities have on the envi... ronment The impact a business's activities have on its public image The impact a business's activities have on its overall financial performance 2. Which report summarizes cash collections and cash expenditures from operating, investing, and financing activities over a period of time? YOUR ANSWER CORRECT ANSWER Cash receipts and disbursements sheet Cash flow schedule Summary of cash receipts Statement of cash flows 3. Which users would have a primary concern with an organization’s ability to provide healthcare benefits? YOUR ANSWER CORRECT ANSWER Competitors Employees Vendors Suppliers 4. Which benefit does a corporation gain by following Generally Accepted Accounting Principles (GAAP)? lOMoARcPSD|319 010 54 YOUR ANSWER CORRECT ANSWER A decrease in its income tax obligations A decrease in the amount of net income it reports An increase in its comparability to other companies An increase in the amount of assets it reports 5. Which body regulates a certified public accounting firm’s audit practices when the firm is auditing a large publicly traded company? YOUR ANSWER CORRECT ANSWER The Public Company Accounting Oversight Board (PCAOB) The Financial Accounting Standards Board (FASB) Another certified public accounting (CPA) firm The Internal Revenue Service (IRS) [Show More]

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