Question 1

Most owners and managers rely heavily on the accountant's judgment and knowledge when making financial decisions.

Accepted Answer

A) True 
 B)False

Question 2

The people, companies, or government agencies to whom a firm owes money are called ________.

Accepted Answer

The answer of The people, companies, or government agencies to...

Question 3

A form of the partnerships business entity is

Accepted Answer

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

Question 4

A form of business entity owned by one person is called a(n)________.

Accepted Answer

The answer of A form of business entity owned by...

Question 5

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 6

A business partnership consists of two or more owners.

Accepted Answer

A) True 
 B)False

Question 7

The government agency that has final authority over the financial reporting of publicly owned corporations is the

Accepted Answer

A) Financial Accounting Standards Board. 
B) Internal Revenue Service. 
C) Federal Trade Commission. 
D) Securities and Exchange Commission. 
A) Financial Accounting Standards Board. 
B) Internal Revenue Service. 
C) Federal Trade Commission. 
D) Securities and Exchange Commission.

Question 8

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

Accepted Answer

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

Question 9

Tax accounting involves tax compliance and

Accepted Answer

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

Question 10

Management advisory services are designed to help

Accepted Answer

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

Deloitte & Touche, E

Question 13

The Sarbanes-Oxley Act includes rules on

Accepted Answer

A) auditor rotation. 
B) auditor reporting. 
C) auditor retention. 
D) auditor reliability. 
A) auditor rotation. 
B) auditor reporting. 
C) auditor retention. 
D) auditor reliability.

Question 14

The Financial Accounting Standards Board is responsible for

Accepted Answer

A) auditing financial statements. 
B) making recommendations to the Securities and Exchange Commission. 
C) developing generally accepted accounting principles. 
D) establishing accounting systems for businesses. 
A) auditing financial statements. 
B) making recommendations to the Securities and Exchange Commission. 
C) developing generally accepted accounting principles. 
D) establishing accounting systems for businesses.

Question 15

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 16

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

Accepted Answer

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

Question 17

Which of the following is NOT an area in which accountants usually practice?

Accepted Answer

A) Managerial (Private)Accounting 
B) Public Accounting 
C) Industrial Accounting 
D) Governmental Accounting 
A) Managerial (Private)Accounting 
B) Public Accounting 
C) Industrial Accounting 
D) Governmental Accounting

Question 18

Anyone can invest in a closely held corporation.

Accepted Answer

A) True 
 B)False

Question 19

In a sole proprietorship, the owner is NOT responsible for the debts of the business if the company is unable to pay.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 1: Accounting: The Language of Business

Most owners and managers rely heavily on the accountant's judgment and knowledge when making financial decisions.

The people, companies, or government agencies to whom a firm owes money are called ________.

A form of the partnerships business entity is

A form of business entity owned by one person is called a(n)________.

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

A business partnership consists of two or more owners.

The government agency that has final authority over the financial reporting of publicly owned corporations is the

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

Tax accounting involves tax compliance and

Management advisory services are designed to help

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

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

The Sarbanes-Oxley Act includes rules on

The Financial Accounting Standards Board is responsible for

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

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

Which of the following is NOT an area in which accountants usually practice?

Anyone can invest in a closely held corporation.

In a sole proprietorship, the owner is NOT responsible for the debts of the business if the company is unable to pay.

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

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh 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 Analysis

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