question

An accounting system is designed to do which of the following activities: a. Classify the data in a meaningful way b. Change data to increase profitability c. Accumulate data about a firm's financial activities d. Summarize information in financial statements

answer

Classify the data in a meaningful way, Accumulate data about a firm's financial activities, Summarize information in financial statements

question

Because accounting is used to communicate financial information, it is often called the \"language of _____\".

answer

Business

question

The process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to interested parties is known as _______.

answer

Accounting

question

Accountants have important roles in the accounting system. Identify which of the following activities are the responsibility of the accountant: a. Supervises the operation of the system b. Establishes the records and procedure that make up the accounting system c. Is responsible for a part of the accounting system, such as accounts receivable

answer

Supervises the operation of the system, Establishes the records and procedure that make up the accounting system

question

An accountant who has passed the Uniform CPA examination and who has fulfilled the experience of the state of practice is known as a:

answer

Certified public accountant

question

The review of financial statements to assess their fairness and adherence to generally accepted accounting principles is known as

answer

Auditing

question

True or False: The results of accounting process is communicated to the users of accounting information.

answer

True

question

Tax accounting involves which of the following activities? a. Tax compliance b. Tax payment c. Tax planning

answer

Tax compliance, Tax planning

question

Many accounting firms offer management advisory services. These services help clients by offering which of the following activities? a. Prepare tax returns b. Audit financial information c. Improve business performance d. Improve information systems

answer

Improve business performance, Improve information systems

question

10. Sometimes referred to as private accounting, ______ accounting involves working for a single business or entity.

answer

Managerial

question

Some of the activities performed by managerial accountants includes: a. Preparing financial statements b. Preparing tax forms c. Providing external audits d. Preparing internal reports

answer

Preparing financial statements, Preparing tax forms, Preparing internal reports

question

Keeping financial records and preparing financial reports as part of the staff of federal, state, for local governmental units is known as _____ accounting.

answer

Governmental

question

The Securities and Exchange Commission (SEC) oversees the financial information provided by publicly owned corporations. Identify which of the following statements is correct about the SEC. a. The SEC can suspend trading of a company's shares on the stock exchange. b. The SEC oversees financial information of both publicly and privately traded entities. c. The SEC has the final say on financial accounting issues faced by publicly traded companies.

answer

The SEC can suspend trading of a company's shares on the stock exchange, The SEC has the final say on financial accounting issues faced by publicly traded companies.

question

The Sarbanes-Oxley Act includes which of the following provisions:

answer

Prohibits the destruction or creation of documents to impede a federal investigation

question

Which of type of business entities has an indefinite life?

answer

Corporation

question

A business entity owned by one person, who is legally responsible for the debts and taxes of the business is called a _________________.

answer

Sole proprietorship

question

An entity is recognized as having its own separate

answer

Identity

question

An entity whose purpose is to produce a profit for its owner is known as a(n) _____ entity.

answer

Economic

question

A non-profit organization, such as city, public school, or public hospital, is known as a(n) _____ entity.

answer

Social

question

The people, companies, or governmental agencies to whom a business owes money are called _______.

answer

Creditors

question

The idea that a business entity should keep the entity's financial records separate from the owner's personal financial records is known as the ________ assumption.

answer

Separate entity

question

A business entity that is separate from its owners, and has a legal right to own property and do business in its own name is known as a ________.

answer

Corporation

question

Corporations issue certificates that represent the ownership of a corporation. These certificates are called _______.

answer

Stock

question

A business entity owned by two or more people, whose structure is dissolved when one or more of the owners leave the entity is called a ______.

answer

Partnership

question

Under some states, a special type of partnership can be formed that provides limited liability for all partners. Under this type of partnership, partners have liability for their own actions and the actions of those under their control. This type of partnership is called a:

answer

Limited liability partnership

question

The owners of a corporation are called:

answer

Stockholders

question

Identify which of the following statements about Generally Accepted Accounting Principles are correct: a. These principles are developed by the Financial Accounting Standards Board b. A corporation may choose to not follow a principle if doing so may produce information which is misleading c. Privately traded companies must follow these principles, or be penalized by the SEC

answer

These principles are developed by the Financial Accounting Standards Board, A corporation may choose to not follow a principle if doing so may produce information which is misleading

question

In 2009, the FASB created a new update, called the ________. This system converted GAAP pronouncements into approximately 90 accounting topics that provide guidance to accounting professionals.

answer

Accounting Standards Codification

question

_________ accounting is the study of accounting principles used by different countries.

answer

International

question

A report that contains the auditor's opinion about the fair presentation of a company is called a(n) ________ report.

answer

Auditor's

question

Rules that must be followed by publicly owned companies, developed by the Financial Accounting Standard Board, are called:

answer

Generally accepted accounting principles

College Accounting: A Contemporary Approach – Ch 01 – The Language of Business – Practice

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