Question : 88. Suppose a number of your friends have organized a company : 1229325

88. Suppose a number of your friends have organized a company to develop and sell a new software product. They have asked you to loan them $8,000 to help get the company started, and have promised to repay your $8,000 plus 10% interest in one year. Of the following, which amount may be described as the return on your investment? 
A. $8,000.
B. $800.
C. $8,800.
D. $7,200.

89. Which of the following is generally not considered one of the general purpose financial statements issued by a corporation? 
A. Income statement forecast for the coming year.
B. Balance sheet.
C. Statement of financial position.
D. Statement of cash flows.

90. All of the following are characteristics of management accounting, except: 
A. Reports are used primarily by insiders rather than by persons outside of the business entity.
B. Its purpose is to assist managers in planning and controlling business operations.
C. Information must be developed in conformity with generally accepted accounting principles or with income tax regulations.
D. Information may be tailored to assist in specific managerial decisions.

91. Of the following objectives of financial reporting, which is the most specific? 
A. Provide information useful in assessing amount, timing, and uncertainty of future cash flows.
B. Provide information useful in making investment and credit decisions.
C. Provide information about economic resources, claims to resources, and changes in resources and claims.
D. Provide information useful to help the enterprise achieve its goals, objectives, and mission.

92. Which of the following does not describe accounting? 
A. It is commonly referred to as the language of business.
B. It is an end rather than a means to an end.
C. It is useful for decision-making.
D. It is used by businesses, governments, non-profit organizations, and individuals.

93. Establishing international accounting standards is the responsibility of: 
A. AICPA.
B. IASB.
C. SEC.
D. AAA.

94. The objectives of an accounting system include all of the following except: 
A. Interpret and record the effects of business transactions.
B. Classify the effects of transactions to facilitate the preparation of reports.
C. Summarize and communicate information to decision makers.
D. Dictate the specific types of business transactions that the enterprise may engage in.

95. Internal users of financial accounting information include all of the following except: 
A. Investors.
B. Managers.
C. Chief Financial Officer.
D. Chief Executive Officer.

96. Objectives of financial reporting to external investors and creditors include preparing information about all of the following except: 
A. Information used to determine which products to produce.
B. Information about economic resources, claims to those resources, and changes in both resources and claims.
C. Information that is useful in assessing the amount, timing, and uncertainty of future cash flows.
D. Information that is useful in making investment and credit decisions.

97. Financial accounting information is characterized by all of the following except: 
A. It is historical in nature.
B. It results from inexact and approximate measures.
C. It is factual, so it does not require judgment to prepare.
D. It is enhanced by management’s explanation.

98. Which of the following is not a user of internal accounting information? 
A. Store manager.
B. Chief executive officer.
C. Creditor.
D. Chief financial officer.

99. Characteristics of internal accounting information include all of the following except: 
A. It is audited by a CPA.
B. It must be timely.
C. It is oriented toward the future.
D. It measures efficiency and effectiveness.

100. Which of the following is not an important factor in ensuring the integrity of accounting information? 
A. Institutional factors, such as standards for preparing information.
B. Professional organizations, such as the American Institute of CPAs.
C. Competence, judgment, and ethical behavior of individual accountants.
D. The cost of preparing the financial information.

101. The code of conduct of the American Institute of Certified Public Accountants includes requirements in which of the following areas? 
A. The Public Interest.
B. Objectivity.
C. Independence.
D. All of the above.