netflixer 1 – Flashcards
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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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the corporation.
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Which of the following is NOT a type of information communicated by the financial statements?
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how long the business has been in operation
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Which of the following is NOT a type of information communicated by the financial statements?
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the types of products and services the business provides
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The Financial Accounting Standards Board is responsible for
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developing generally accepted accounting principles
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The government agency that has final authority over the financial reporting of publicly owned corporations is
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the Securities and Exchange Commission
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The financial affairs of a business and the financial affairs of the owners should be
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kept totally separate
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All financial statements submitted to the SEC by publicly owned corporations must include an auditor's report prepared by
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an independent certified public accountant.
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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
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managerial accounting
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The corporations whose stock can be bought and sold on stock exchanges and in over-the-counter markets are referred to as
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publicly owned corporations
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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
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the AAA.
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Owners are not personally responsible for the debts of the business if the form of business organization is
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the corporation
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Identify the form of business that is considered a separate legal entity.
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a corporation
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Identify the advantages of forming a business as an S Corporation
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owners avoid double taxation and owners have limited liability
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A firm issues periodic reports called
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financial statements.
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Which of the following is NOT part of the process of accounting for financial information
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identifying
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Which of the following is a true statement in regards to the International Accounting Standards Board?
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The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries
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Which of the following is NOT a service of public accounting firms
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investment services
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Tax accounting involves tax compliance and
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tax planning.
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Tax planning includes
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suggesting actions to reduce tax liability
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Managerial accounting is
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private accounting.
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The following are all government agencies except
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AICPA.
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An act passed in response to the wave of corporate accounting scandals is the
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Sarbanes-Oxley Act.
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Owners and managers need financial information in order to
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make decisions.
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The Sarbanes-Oxley Act includes rules on
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auditor rotation.
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A form of the partnerships business entity is
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LLP.
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Identify the statement below that represents what GAAP stands for
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Generally Accepted Accounting Principles.
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The review of financial statements to assess their fairness and adherence to GAAP is
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auditing.
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Management advisory services are designed to help
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clients.
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An independent accountant who provides accounting services to the public for a fee is a
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CPA.
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The Financial Accounting Standards Board has the authority to develop generally accepted accounting principles. Choose the option below that contains the steps used by the FASB in developing GAAP
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steps include: issuing a discussion memorandum, issuing an exposure draft, and issuing a statement of principle.
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