Accounting : Accounting and the Business Environment
Study concepts, example questions & explanations for Accounting
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Example Questions
Example Question #1 : Accounting
If the Alpha Corporation's 2015 alternative minimum taxable income was 
This problem asks us to determine the exempt portion of the Alpha Corporation's alternative minimum taxable income (AMTI). A corporation is allowed an exemption of up to 
Substitute and solve.
Example Question #2 : Accounting
Which of the following is not an accurate difference between the International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (US GAAP)?
The US GAAP has no requirement regarding comparative information while the IFRS does.
The US GAAP uses a principles based approach while the IFRS employs a rules based approach.
The IFRS permits the reevaluation of intangible assets other than goodwill while the US GAAP does not.
The US GAAP uses a two-step impairment approach while the IFRS uses a one-step approach.
The US GAAP uses a principles based approach while the IFRS employs a rules based approach.
"The US GAAP uses a principles based approach while the IFRS employs a rules based approach" is the correct answer. This is not an accurate difference between the IFRS and the USGAAP. The US GAAP typically employs a rules based approach while the IFRS follows a principles based approach. The other choices represent accurate differences between the IFRS and US GAAP according to the International Accounting Standards Committee.
Example Question #3 : Accounting
__________ accounting provides information for __________ decision makers (e.g. outside investors and lenders); however, __________ accounting focuses on information for __________ decision makers (e.g. supervisors).
Managerial. . . external. . . financial. . . internal
Financial. . . internal. . . managerial. . . external
Managerial. . . internal. . . financial. . . external
Financial. . . external. . . managerial. . . internal
Financial. . . external. . . managerial. . . internal
"Financial. . . external. . . managerial. . . internal" is the correct choice. Accounting can be required into two fields: financial and managerial. Financial accounting provides data for outsiders, while managerial accounting provides data for insiders.
Example Question #1 : Accounting And The Business Environment
__________ accounting provides information for __________ decision makers (e.g. outside investors and lenders); however, __________ accounting focuses on information for __________ decision makers (e.g. supervisors).
Managerial. . . external. . . financial. . . internal
Financial. . . external. . . managerial. . . internal
Managerial. . . internal. . . financial. . . external
Financial. . . internal. . . managerial. . . external
Financial. . . external. . . managerial. . . internal
"Financial. . . external. . . managerial. . . internal" is the correct choice. Accounting can be required into two fields: financial and managerial. Financial accounting provides data for outsiders, while managerial accounting provides data for insiders.
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