netflixer 1 – Flashcards

Unlock all answers in this set

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