SAMPLE QUESTIONS FOR ITB MODULAR EXAM

1. _____________ is a comprehensive system for collecting, analyzing, and communicating

financial information.

a. Bookkeeping

b. Accounting

c. Controlling

d. Auditing

e. Budgeting

b (page 488, easy)

2. ______________ is the recording of financial transactions.

a. Bookkeeping

b. Accounting

c. Controlling

d. Auditing

e. Budgeting

a (page 488, easy)

3. Financial accounting is

a. a systematic examination of a company’s accounting system to determine whether its

financial reports fairly represent its operations.

b. a field of accounting that serves internal users of a company’s financial information.

c. the rules and procedures governing the content and form of financial reports.

d. the field of accounting concerned with external users of a company’s financial

information.

e. a bookkeeping system that balances the accounting equation by recording the dual effects
of every financial transaction.

d (page 489, moderate)

4. A(n) ____________ is a salaried accountant hired by a business to carry out its day-to-day
financial activities.
 a. public accountant

b. advisor

c. private accountant

d. controller

e. auditor

5. Current assets are listed in order of ________ on the balance sheet.

a. age

b. the alphabet

c. liquidity

d. dollar value

e. cost

c (page 497, difficult)

b (page 520, moderate)

a (page 520, moderate)

8. Modern currency is light and easy to handle, thus meeting the criteria of

a. portable.

b. divisible.

c. stable.

d. durable.

e. valuable.

a (page 520, moderate)

9. David is saving $25.00 a week toward getting a new truck. This illustrates the _______ function
of money.

a. basis for banking system

b. medium of exchange

c. store of value

d. unit of account

e. payment for labor

c (page 520, difficult)

10. _______ is the world's largest credit card issuer.

a. Citi Cards

b. BancOne

c. NationsBank
 d. Wells Fargo

e. Chase Manhattan

a (page 523, moderate)