question

Managerial Accounting

answer

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

question

An independent certified public accountant

answer

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

question

The SEC

answer

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

question

Developing generally accepted accounting principles

answer

The Financial Accounting Standards Board is responsible for

question

Kept totally separate

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

question

Publicly owned corporations

answer

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

question

Corporations

answer

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

question

A business

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An example of an economic entity is

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Corporations

answer

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

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Sole proprietorship

answer

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

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Principles

answer

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

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Audited

answer

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

question

Stocks

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Ownership in a corporation is evidenced by shares of

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Governmental accounting

answer

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

question

Corporation

answer

The three major legal forms of business entity are the sole proprietorship, the partnership, and the

question

Statements

answer

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

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Services

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

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Debtors

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

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True

answer

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

question

True

answer

Public accounting firms provide three major types of services: auditing, taxing accounting, and management advisory services?

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False

answer

The owners of a partnership business are referred to as stockholders?

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True

answer

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

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False

answer

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

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True

answer

An economic entity is an organization whose major purpose is to produce a profit for its owners?

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False

answer

Currently, generally accepted accounting principles are developed by the American Institute of Certified Public Accountants?

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True

answer

The Securities and Exchange Commission requires that publicly owned corporations submit financial statements to it each year?

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True

answer

Laws passed by Congress in 1933 and 1934 gave the SEC final say on matters of financial reporting by publicly owned corporations?

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True

answer

Private accounting is also referred to as managerial accounting?

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False

answer

A business is an example of a social entity?

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False

answer

Anyone can invest in a closely held corporation?

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True

answer

The death or withdrawal of one partner ends the partnership?

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False

answer

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

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Economic Entity

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Is a business a Social or Economic Entity?

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True

answer

Is the main purpose of an economic entity to make money?

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The FASB

answer

The General Accepted Accounting Principles are developed by

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False

answer

Does the SEC determine a businesses tax base?

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General Accountant Principles

answer

What is the FASB responsible for

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The SEC

answer

The Government Agency that has final authority over the financial reporting of publicly owned corporations is

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False

answer

A corporation whose stock can be bought and sold is known as a "closely held corporations?"

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