Question 1

Managerial accounting is

Accepted Answer

A)  public accounting. 
B)  government accounting. 
C)  private accounting. 
D)  tax accounting. 
A)  public accounting. 
B)  government accounting. 
C)  private accounting. 
D)  tax accounting.

Question 2

Tax accounting involves tax compliance and

Accepted Answer

A)  tax evaluation. 
B)  tax planning. 
C)  tax configuration. 
D)  tax obfuscation. 
A)  tax evaluation. 
B)  tax planning. 
C)  tax configuration. 
D)  tax obfuscation.

Question 3

Public accountants work on the staff of federal,state,or local governmental units.

Accepted Answer

A) True 
 B)False

Question 4

An act passed in response to the wave of corporate accounting scandals is the

Accepted Answer

A)  Saxon-Ordanly Act. 
B)  Sarbanes-Oxley Act. 
C)  Sardonic-Oxone Act. 
D)  Sorbine-Oxide Act. 
A)  Saxon-Ordanly Act. 
B)  Sarbanes-Oxley Act. 
C)  Sardonic-Oxone Act. 
D)  Sorbine-Oxide Act.

Question 5

A partnership has ____________________ or more owners.

Accepted Answer

The answer of A partnership has ____________________ or more owners....

Question 6

The area of accounting that involves the preparation of internal reports for a firm's executives and the analysis of the data in these reports to aid in decision making is known as

Accepted Answer

A)  financial accounting. 
B)  managerial accounting. 
C)  auditing. 
D)  cost accounting. 
A)  financial accounting. 
B)  managerial accounting. 
C)  auditing. 
D)  cost accounting.

Question 7

Audited financial statements include an auditor's report.What does this auditor's report contain?

Accepted Answer

It contains the auditor's opin

Question 8

Which of the following is NOT a service of public accounting firms?

Accepted Answer

A)  auditing 
B)  tax accounting 
C)  management advisory services 
D)  investment services 
A)  auditing 
B)  tax accounting 
C)  management advisory services 
D)  investment services

Question 9

Identify which of the following are considered OUTSIDE users of financial accounting information.

Accepted Answer

A)  employees 
B)  managers 
C)  owners 
D)  banks 
A)  employees 
B)  managers 
C)  owners 
D)  banks

Question 10

What determines the independence of Certified Public Accountants (CPAs)?

Accepted Answer

They are not employees of the

Question 11

The purpose of accounting is to provide financial information about an economic or social entity.

Accepted Answer

A) True 
 B)False

Question 12

Identify the form of business that is considered a separate legal entity.

Accepted Answer

A)  a sole proprietorship 
B)  a corporation 
C)  a limited liability partnership 
D)  a partnership 
A)  a sole proprietorship 
B)  a corporation 
C)  a limited liability partnership 
D)  a partnership

Question 13

When a business is organized as a sole proprietorship,the owner should combine his/her personal financial information with the business financial information.

Accepted Answer

A) True 
 B)False

Question 14

The review of financial statements to assess their fairness and adherence to GAAP is

Accepted Answer

A)  accounting. 
B)  preparation. 
C)  compliance. 
D)  auditing. 
A)  accounting. 
B)  preparation. 
C)  compliance. 
D)  auditing.

Question 15

Accounting is defined as the process by which financial information about a business is recorded,classified,summarized,interpreted,and communicated to owners,managers,and other interested parties.

Accepted Answer

A) True 
 B)False

Question 16

Accountants normally choose to practice in one of three areas: public accounting,managerial accounting,or ____________________ accounting.

Accepted Answer

The answer of Accountants normally choose to practice in one...

Question 17

Management advisory services are designed to help

Accepted Answer

A)  government agencies. 
B)  clients. 
C)  employers. 
D)  creditors. 
A)  government agencies. 
B)  clients. 
C)  employers. 
D)  creditors.

Question 18

The Financial Accounting Standards Board has the authority to develop generally accepted accounting principles.Choose the option below that contains the steps used by the FASB in developing GAAP.

Accepted Answer

A)  steps include: publishing a notice in the newspaper,seeking public opinion,and issuing a statement of principle. 
B)  steps include: issuing a discussion memorandum,filing a legal draft,and notifying the SEC. 
C)  steps include: filing a complaint with the SEC,issuing an internal report,and issuing a statement of principle. 
D)  steps include: issuing a discussion memorandum,issuing an exposure draft,and issuing a statement of principle. 
A)  steps include: publishing a notice in the newspaper,seeking public opinion,and issuing a statement of principle. 
B)  steps include: issuing a discussion memorandum,filing a legal draft,and notifying the SEC. 
C)  steps include: filing a complaint with the SEC,issuing an internal report,and issuing a statement of principle. 
D)  steps include: issuing a discussion memorandum,issuing an exposure draft,and issuing a statement of principle.

Question 19

Generally accepted accounting ____________________ are financial accounting standards that are changed and refined in response to changes in the environment in which businesses operate.

Accepted Answer

The answer of Generally accepted accounting ____________________ are financial accounting...

Question 20

Cullen Company of country X and Shaw Industries of country Y have issued financial statements in compliance with the accounting principles of their respective countries.They would like to work together on a project and need to compare their current financial statements prior to beginning.However,the accounting principles of the two countries differ.What organization might they turn to regarding this issue? (Give both the full name of the organization and its acronym. )What is the function of this organization?

Accepted Answer

Organization: International Accounting S

Exam 1: Accounting: the Language of Business

Managerial accounting is

Tax accounting involves tax compliance and

Public accountants work on the staff of federal,state,or local governmental units.

An act passed in response to the wave of corporate accounting scandals is the

A partnership has ____________________ or more owners.

The area of accounting that involves the preparation of internal reports for a firm's executives and the analysis of the data in these reports to aid in decision making is known as

Audited financial statements include an auditor's report.What does this auditor's report contain?

Which of the following is NOT a service of public accounting firms?

Identify which of the following are considered OUTSIDE users of financial accounting information.

What determines the independence of Certified Public Accountants (CPAs)?

The purpose of accounting is to provide financial information about an economic or social entity.

Identify the form of business that is considered a separate legal entity.

When a business is organized as a sole proprietorship,the owner should combine his/her personal financial information with the business financial information.

The review of financial statements to assess their fairness and adherence to GAAP is

Accounting is defined as the process by which financial information about a business is recorded,classified,summarized,interpreted,and communicated to owners,managers,and other interested parties.

Accountants normally choose to practice in one of three areas: public accounting,managerial accounting,or ____________________ accounting.

Management advisory services are designed to help

The Financial Accounting Standards Board has the authority to develop generally accepted accounting principles.Choose the option below that contains the steps used by the FASB in developing GAAP.

Generally accepted accounting ____________________ are financial accounting standards that are changed and refined in response to changes in the environment in which businesses operate.

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

Filters