Skip to ContentGo to accessibility pageKeyboard shortcuts menu
OpenStax Logo

Review Questions

1 .
Accounting is sometimes called the “language of ________.”
  1. Wall Street
  2. business
  3. assets and liabilities
  4. financial statements
2 .
Financial accounting information ________.
  1. should be incomplete in order to confuse competitors
  2. should be prepared differently by each company
  3. provides investors with guarantees about the future
  4. summarizes business activities in the company that have already occurred
3 .
________ is an example of an external user of financial accounting information.
  1. A new employee to the company
  2. The CEO
  3. The marketing department of the company
  4. A potential investor
4 .
Which groups typically create initial managerial accounting reports?
  1. bankers
  2. investors
  3. competitors of the business
  4. internal company decision makers
5 .
Which function input is used to determine the monetary value of an investment at the end of a time period?
  1. PV
  2. FV
  3. NPER
  4. Type
6 .
________ is the decrease in value of an asset over time.
  1. Future value
  2. Time value of money
  3. Depreciation
  4. Present value
7 .
What is the underlying financial concept used to compare money balances for different periods?
  1. time value of money
  2. financial value of money
  3. debt sorting
  4. economic inflation theory
8 .
What is one advantage that Excel has over QuickBooks?
  1. Making financial statements is easier.
  2. Excel is better equipped to do analysis of the numbers.
  3. Excel makes it easy to track payroll.
  4. Excel can generate tax reports.
9 .
Which feature is available in accounting software programs such as QuickBooks?
  1. analysis showing major spending categories by averages
  2. forming graphs and charts of the information
  3. determining which expenses are outside of the normal range
  4. generating tax reports

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Attribution information
  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at
Citation information

© Jan 3, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.