Financial Accounting_2

#1. What does the term “communicating” mean in Financial Accounting?

a) Recording transactions

b) Preparing budget estimates

c) Sending financial reports to stakeholders

d) Managing supply chains

#2. R. N. Anthony defines Financial Accounting as:

a) Preparing and analyzing financial statements for internal use only

b) The recording of business transactions and preparation of financial statements for external stakeholders

c) A system of financial planning for future investments

d) A method of increasing business revenue

#3. Which of the following is NOT a key aspect of Financial Accounting?

a) Analyzing market trends

b) Identifying transactions

c) Recording financial data

d) Preparing financial reports

#4. Financial Accounting helps businesses by:

a) Reducing overall expenses

b) Making financial data accessible for decision-making

c) Managing employee benefits

d) Creating marketing strategies

#5. According to John N. Myer, Financial Accounting is concerned with:

a) Preparing company marketing strategies

b) Communicating financial results to external users

c) Setting employee salaries

d) Managing business operations

#6. According to Smith and Ashburne, Financial Accounting involves:

a) Classification and recording of monetary transactions

b) Management of a company's employees

c) Marketing and branding of a company

d) Making production-related decisions

#7. The American Accounting Association (AAA) defines Financial Accounting as:

a) A method to attract investors

b) The analysis of internal business strategies

c) The process of identifying, measuring, and communicating economic information

d) The act of controlling business operations

#8. According to the American Institute of Certified Public Accountants (AICPA), Financial Accounting is:

a) The recording of personal transactions

b) The art of recording, classifying, and summarizing financial transactions

c) The process of budgeting and forecasting

d) The preparation of tax reports only

#9. Which of the following is a major limitation of Financial Accounting?

a) It focuses only on past transactions

b) It provides future projections

c) It considers non-monetary factors

d) It includes management accounting reports

#10. Financial Accounting is mainly used by:

a) Customers and suppliers

b) Investors, creditors, and regulatory authorities

c) HR and marketing teams

d) Business competitors