Chapter 1—Accounting Information: Users and Uses MULTIPLE CHOICE 1. Which of the following is NOT typically true of accounting information? a. The information is quantitative in nature. b. The information relates to future time periods. c. The information relates to specific accounting entities. d. The information is primarily financial in nature. ANS: B PTS: 1 DIF: Easy OBJ: 1.1 NAT: AACSB Reflective Thinking | AICPA FN Measurement 2. Which of the following is true about the double-entry system of bookkeeping? a. It was developed in the 1300s−1400s in France. b. It was developed in the 1800s in Italy. c. It was developed in the 1300s−1400s in Italy. d. It was developed in the 1800s in the United States. ANS: C PTS: 1 DIF: Easy OBJ: 1.1 NAT: AACSB Reflective Thinking | AICPA FN Measurement 3. Businesses use accounting systems to a. Analyze transactions b. Handle routine bookkeeping tasks c. Evaluate the performance and health of the business d. All of these are correct ANS: D PTS: 1 DIF: Easy OBJ: 1.1 NAT: AACSB Reflective Thinking | AICPA FN Measurement 4. Which of the following is the most correct definition of accounting? a. A system for providing quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions. b. An entity without a profit objective, oriented toward providing services efficiently and effectively. c. The preservation of a systematic, quantitative record of an activity. d. The procedures and processes used by a company to analyze transactions and handle routine bookkeeping tasks. ANS: A PTS: 1 DIF: Easy OBJ: 1.1 NAT: AACSB Reflective Thinking | AICPA FN Measurement 5. Which of the following is NOT a function of accounting? a. Accumulating economic information about organizations b. Measuring economic information about organizations c. Executing sales transactions for organizations d. Communicating economic information about organizations ANS: C PTS: 1 DIF: Easy OBJ: 1.1 NAT: AACSB Reflective Thinking | AICPA FN Measurement