Question 1

The results of the accounting process are summarized in periodic reports called financial ___________________.

Accepted Answer

statements

Question 2

Identify the statement below that represents what GAAP stands for

Accepted Answer

A)  Generally Accepted Accounting Principles. 
B)  Generally Accepted Auditing Practices. 
C)  General Accounting Actuary Principles. 
D)  Generally Approved Accounting Practices. 
A)  Generally Accepted Accounting Principles. 
B)  Generally Accepted Auditing Practices. 
C)  General Accounting Actuary Principles. 
D)  Generally Approved Accounting Practices. A

Question 3

When a partner leaves,the partnership is dissolved and a new partnership may be formed with the remaining partners.

Accepted Answer

A) True 
 B)False  True

Question 4

The form of a business organization that is not affected by the withdrawal or death of an owner and can continue forever is

Accepted Answer

A)  the sole proprietorship. 
B)  the partnership. 
C)  the corporation. 
D)  the nonprofit organization. 
A)  the sole proprietorship. 
B)  the partnership. 
C)  the corporation. 
D)  the nonprofit organization.

Question 5

Accounting is often referred to as the language of ___________________.

Accepted Answer

The answer of Accounting is often referred to as the...

Question 6

List three individuals or groups who use financial information to make decisions about a firm.For each listed,give an example of why they would need the information.

Accepted Answer

Owners and managers-to evaluate results

Question 7

Which of the following is NOT a type of information communicated by the financial statements?

Accepted Answer

A)  the equity,or value,of the business 
B)  the amount spent on costs (expenses)of the business 
C)  the types of products and services the business provides 
D)  the amount of revenue earned by the business 
A)  the equity,or value,of the business 
B)  the amount spent on costs (expenses)of the business 
C)  the types of products and services the business provides 
D)  the amount of revenue earned by the business

Question 8

The group of accounting educators who offer their opinions about proposed FASB statements,after research has been done to determine the possible effects on financial reporting and the economy,is

Accepted Answer

A)  the FCC. 
B)  the AICPA. 
C)  the SEC. 
D)  the AAA. 
A)  the FCC. 
B)  the AICPA. 
C)  the SEC. 
D)  the AAA.

Question 9

The following are all government agencies except

Accepted Answer

A)  SEC. 
B)  AICPA. 
C)  IRS. 
D)  FBI. 
A)  SEC. 
B)  AICPA. 
C)  IRS. 
D)  FBI.

Question 10

Managerial accountants usually do which of the following?

Accepted Answer

A)  audit financial statements 
B)  prepare tax returns and audit the returns 
C)  establish accounting policies 
D)  investigate companies for possible violations of law 
A)  audit financial statements 
B)  prepare tax returns and audit the returns 
C)  establish accounting policies 
D)  investigate companies for possible violations of law

Question 11

The financial affairs of a business and the financial affairs of the owners should be

Accepted Answer

A)  combined in the firm's accounting records. 
B)  reported in different parts of the firm's accounting records. 
C)  combined only if the owner wants them to be. 
D)  kept totally separate. 
A)  combined in the firm's accounting records. 
B)  reported in different parts of the firm's accounting records. 
C)  combined only if the owner wants them to be. 
D)  kept totally separate.

Question 12

Define the following terms: entity,economic entity,and social entity.

Accepted Answer

Entity-recognized as having it

Question 13

The financial statements submitted to the SEC by a corporation must be ____________________ by an independent accountant to ensure their fairness and adherence to generally accepted accounting principles.

Accepted Answer

The answer of The financial statements submitted to the SEC...

Question 14

Which of the following is NOT a type of information communicated by the financial statements?

Accepted Answer

A)  whether or not the business is profitable 
B)  what types of assets business owns 
C)  how long the business has been in operation 
D)  how much the business owes others 
A)  whether or not the business is profitable 
B)  what types of assets business owns 
C)  how long the business has been in operation 
D)  how much the business owes others

Question 15

Owners and managers need financial information in order to

Accepted Answer

A)  grant loans. 
B)  issue credit. 
C)  collect taxes. 
D)  make decisions. 
A)  grant loans. 
B)  issue credit. 
C)  collect taxes. 
D)  make decisions.

Question 16

Managerial Accounting is any activity associated with the preparation of tax returns and the audit of those returns.

Accepted Answer

A) True 
 B)False

Question 17

In a sole proprietorship,the owner is responsible for the debts of the business if the firm is unable to pay.

Accepted Answer

A) True 
 B)False

Question 18

Public accounting firms provide three major types of services: auditing,tax accounting,and management advisory services.

Accepted Answer

A) True 
 B)False

Question 19

The separate entity assumption applies only to the corporate form of business.

Accepted Answer

A) True 
 B)False

Question 20

List the "Big Four" public accounting firms in the United States.

Accepted Answer

Deloitte & Touche,Er

Exam 1: Accounting: the Language of Business

The results of the accounting process are summarized in periodic reports called financial ___________________.

Identify the statement below that represents what GAAP stands for

When a partner leaves,the partnership is dissolved and a new partnership may be formed with the remaining partners.

The form of a business organization that is not affected by the withdrawal or death of an owner and can continue forever is

Accounting is often referred to as the language of ___________________.

List three individuals or groups who use financial information to make decisions about a firm.For each listed,give an example of why they would need the information.

Which of the following is NOT a type of information communicated by the financial statements?

The group of accounting educators who offer their opinions about proposed FASB statements,after research has been done to determine the possible effects on financial reporting and the economy,is

The following are all government agencies except

Managerial accountants usually do which of the following?

The financial affairs of a business and the financial affairs of the owners should be

Define the following terms: entity,economic entity,and social entity.

The financial statements submitted to the SEC by a corporation must be ____________________ by an independent accountant to ensure their fairness and adherence to generally accepted accounting principles.

Which of the following is NOT a type of information communicated by the financial statements?

Owners and managers need financial information in order to

Managerial Accounting is any activity associated with the preparation of tax returns and the audit of those returns.

In a sole proprietorship,the owner is responsible for the debts of the business if the firm is unable to pay.

Public accounting firms provide three major types of services: auditing,tax accounting,and management advisory services.

The separate entity assumption applies only to the corporate form of business.

List the "Big Four" public accounting firms in the United States.

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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