Question 1

The Securities and Exchange Commission (SEC)requires that publicly owned corporations submit financial statements to it each year.

Accepted Answer

A) True 
 B)False

Question 2

All financial statements submitted to the SEC by publicly owned corporations must include an auditor's report prepared by

Accepted Answer

A)  an internal auditor. 
B)  the firm's managerial accountant. 
C)  an independent certified public accountant. 
D)  anyone in the accounting department. 
A)  an internal auditor. 
B)  the firm's managerial accountant. 
C)  an independent certified public accountant. 
D)  anyone in the accounting department.

Question 3

Identify the advantages of forming a business as an S Corporation.

Accepted Answer

A)  owners avoid double taxation and owners have limited liability 
B)  treated as a separate legal entity and owners avoid double taxation 
C)  owners have limited liability and corporation's earnings are tax free 
D)  owner is personally responsible for debts of the business and earnings are reported directly on owner's personal tax return 
A)  owners avoid double taxation and owners have limited liability 
B)  treated as a separate legal entity and owners avoid double taxation 
C)  owners have limited liability and corporation's earnings are tax free 
D)  owner is personally responsible for debts of the business and earnings are reported directly on owner's personal tax return

Question 4

Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange Commission (SEC)final say on matters of financial reporting by publicly owned corporations.

Accepted Answer

A) True 
 B)False

Question 5

Owners are not personally responsible for the debts of the business if the form of business organization 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 6

The owners of a corporation are called ___________________.

Accepted Answer

stockholde

Question 7

The owners and managers of a business are the only users of the financial information.

Accepted Answer

A) True 
 B)False

Question 8

Anyone can invest in a closely held corporation.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT part of the process of accounting for financial information?

Accepted Answer

A)  recording 
B)  identifying 
C)  communicating 
D)  classifying 
A)  recording 
B)  identifying 
C)  communicating 
D)  classifying

Question 10

Which of the following is a true statement in regards to the International Accounting Standards Board?

Accepted Answer

A)  The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries 
B)  The IASB was created by the American Accounting Association 
C)  The IASB develops all accounting principles to be used in the United States 
D)  The IASB has the authority to audit financial statements of all US corporations 
A)  The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries 
B)  The IASB was created by the American Accounting Association 
C)  The IASB develops all accounting principles to be used in the United States 
D)  The IASB has the authority to audit financial statements of all US corporations

Question 11

The process by which financial information about a business is recorded,classified,summarized,interpreted,and communicated to owners,managers,and other interested parties is called ___________________.

Accepted Answer

The answer of The process by which financial information about...

Question 12

Accountants provide financial information to various parties so they can make business decisions.

Accepted Answer

A) True 
 B)False

Question 13

Financial information users such as owners,managers and employees,are referred to as ___________________ users.

Accepted Answer

The answer of Financial information users such as owners,managers and...

Question 14

Currently,generally accepted accounting principles are developed by the American Institute of Certified Public Accountants (AICPA).

Accepted Answer

A) True 
 B)False

Question 15

The financial statements and the auditor's report must be made available to stockholders of publicly owned corporations.

Accepted Answer

A) True 
 B)False

Question 16

A form of the partnerships business entity is

Accepted Answer

A)  LLP. 
B)  LLC. 
C)  INP. 
D)  DBA. 
A)  LLP. 
B)  LLC. 
C)  INP. 
D)  DBA.

Question 17

The SEC uses financial information to determine a company's tax base.

Accepted Answer

A) True 
 B)False

Question 18

The corporations whose stock can be bought and sold on stock exchanges and in over-the-counter markets are referred to as

Accepted Answer

A)  privately owned corporations. 
B)  closely held corporations. 
C)  publicly owned corporations. 
D)  sole proprietorships. 
A)  privately owned corporations. 
B)  closely held corporations. 
C)  publicly owned corporations. 
D)  sole proprietorships.

Question 19

There are three general services public accountants offer.List and briefly describe each.

Accepted Answer

Auditing: the review of financial statem

Question 20

A firm issues periodic reports called

Accepted Answer

A)  financial statements. 
B)  summaries. 
C)  tax returns. 
D)  audits. 
A)  financial statements. 
B)  summaries. 
C)  tax returns. 
D)  audits.

Exam 1: Accounting: the Language of Business

The Securities and Exchange Commission (SEC)requires that publicly owned corporations submit financial statements to it each year.

All financial statements submitted to the SEC by publicly owned corporations must include an auditor's report prepared by

Identify the advantages of forming a business as an S Corporation.

Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange Commission (SEC)final say on matters of financial reporting by publicly owned corporations.

Owners are not personally responsible for the debts of the business if the form of business organization is

The owners of a corporation are called ___________________.

The owners and managers of a business are the only users of the financial information.

Anyone can invest in a closely held corporation.

Which of the following is NOT part of the process of accounting for financial information?

Which of the following is a true statement in regards to the International Accounting Standards Board?

The process by which financial information about a business is recorded,classified,summarized,interpreted,and communicated to owners,managers,and other interested parties is called ___________________.

Accountants provide financial information to various parties so they can make business decisions.

Financial information users such as owners,managers and employees,are referred to as ___________________ users.

Currently,generally accepted accounting principles are developed by the American Institute of Certified Public Accountants (AICPA).

The financial statements and the auditor's report must be made available to stockholders of publicly owned corporations.

A form of the partnerships business entity is

The SEC uses financial information to determine a company's tax base.

The corporations whose stock can be bought and sold on stock exchanges and in over-the-counter markets are referred to as

There are three general services public accountants offer.List and briefly describe each.

A firm issues periodic reports called

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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