Exam 1: Accounting: The Language of Business

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

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.

What is the "language of business?" List three groups who use this financial information.

Tax accounting is a service offered by public accounting firms that involves tax ________ and tax planning.

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

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

List at least three of the provisions of the Sarbanes-Oxley Act.

You have just entered college and decide to pursue a career as an accountant. What are the three areas in which an accountant can practice?

An example of an economic entity is

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

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

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

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

Ownership in a corporation is evidenced by shares of ________.

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

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

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

A form of business entity owned by two or more people is called a(n)________.

As the first step in the development of generally accepted accounting principles, the FASB writes a discussion memorandum, which explains the topic being considered.

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