College Accounting 21e Chapter 1 – Flashcards

A system of gathering financial information about a business, and reporting this information to users refers to:

The private standard-setting body that establishes GAAP is the:

Entering financial information about business events into the accounting system refers to:

GAAP stands for:

Making a product for resale is a characteristic of:

All of the following are true except: a. the purpose of the audit is to provide an independent opinion that the financial information about a business is fairly presented in a manner consistent with GAAP. b. forensic accounting includes fraud detection and prevention. c. management advisory services include the application of standard review and testing procedures to be certain that proper accounting policies and practices have been followed. d. public accountants advise businesses on a variety of managerial issues.

Detailed measures of business performance is the main concern of:

A bookkeeper's responsibilities include:

Providing financial information about the current operations and financial condition of a business to individuals, agencies and organizations is:

A law firm would be an example of a:

A proprietorship is owned by:

Which of the following is/are true? a. "Shareholders may have little influence on business decisions made by a corporation" and "Shareholders assume all risks for a corporation". b. Shareholders assume all risks for a corporation. c. Shareholders may have little influence on business decisions made by a corporation. d. A disadvantage of partnerships is that owners share risks and decision making.

ll of the following are examples of a service business, except: a. a computer consultant. b. a real estate management company. c. a pharmacy. d. a physician's office.

Accounting clerks:

The controller of a firm: a. is the principal accounting officer of the company. b. All of these choices are correct. c. oversees the entire accounting process. d. prepares financial reports and presents recommendations to upper management.

A discussion memorandum is issued by FASB a. after researching an issue. b. after receiving feedback on an issue. c. after an issue has been placed on Fabe's agenda. d. after hearings are held on an issue.

Being a corporate stockholder means: a. sharing management functions with the rest of the stockholders. b. having little influence on business decisions. c. assuming all risks of the business. d. personal assets can be taken to pay creditors.

A manufacturing business: a. can be a grocery store. b. makes a product to sell. c. provides a service to other businesses. d. buys a product and resells it for profit.

All of the following are steps in the accounting process except: a. summarizing information from similar business events. b. reporting to FASB the results of business operations. c. analyzing business events and their effect on the business. d. recording financial information in the accounting system.

The recording, classifying, summarizing, and reporting steps of the accounting process can be performed either by computers or manually. If done manually, a. a management consultant should be hired. b. None of these choices are correct. c. the accounting concepts and techniques would be significantly different. d. the accounting concepts and techniques would be the same as if they had been performed by computers.

Business owners are most interested in a. how much income tax the IRS will assess. b. accounting process. c. hiring the best managers. d. the company's profitability and current financial condition.

Managers are most interested in a. Detailed measures of business performance. b. Securing credit lines from creditors. c. Owning a business. d. Generally accepted accounting principles.

n advantage of a partnership is that: a. partners do not share risks and decision making. b. partners share risks and decision making. c. partners are not personally liable for the debts of the partnership. d. the partners may disagree about the best way to run the business.