Self Assessment Quizzes

CHAPTER 2: Section 2 Accounting: The Universal Language of Business

	1.	One example of an accounting assumption is

		a.	financial accounting
		b.	management accounting
		c.	business entity
		d.	financial reports

	2.	When accounting information is processed by hand it is called

		a.	an in-house system
		b.	a manual accounting system
		c.	a financial reporting system
		d.	open accounting

	3.	Financial accounting reports are often used by

		a.	loan officers
		b.	factory workers
		c.	individuals inside a business
		d.	none of the above

	4.	GAAP stands for

		a.	generally accepted accounting principles
		b.	generally allowed accounting principles
		c.	a clothing store
		d.	generally accepted accounting period

	5.	Accounting is often called the "language of business" because

		a.	it is easy to understand
		b.	it is fundamental to the communication of financial information
		c.	all business owners have a good understanding of accounting principles
		d.	accountants in many companies share financial information

	6.	Stevie Ray Vaughn was

		a.	the father of the modern accounting methods
		b.	the inventor of "the language of business"
		c.	the first Certified Public Accountant
		d.	a famous blues guitarist