WGU CYC1 Accounting 1 – Flashcards
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The Sarbanes-Oxley Act includes rules on
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auditor rotation
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An example of an economic entity is
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a business
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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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The financial affairs of a business and the financial affairs of the owners should be
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kept totally seperate
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Management advisory services are designed to help
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clients
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Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange Commission (SEC) final say on matters of financial reporting by publicly owned corporations.
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TRUE
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An accounting system is designed to accumulate and classify data about a firm's financial affairs and summarize it in the general journal.
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FALSE
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The death or withdrawal of one partner ends the partnership.
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TRUE
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A form of the partnerships business entity is
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LLP
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The financial statements and the auditor's report must be made available to stockholders of publicly owned corporations.
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TRUE
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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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The Securities and Exchange Commission (SEC) requires that publicly owned corporations submit financial statements to it each year.
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true
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tax planning includes
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suggesting actions to reduce tax liability.
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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 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 death or withdrawal of one partner ends the partnership
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true
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When a business is organized as a sole proprietorship, the owner may combine his/her personal financial information with the business financial information.
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false
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Accountants provide financial information to various parties so they can make business decisions.
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true
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The purpose of accounting is to provide financial information about an economic or social entity.
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true
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The owners and managers of a business are the only users of the Financial Information.
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false
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Public accounting firms provide three major types of services: auditing, tax accounting, and management advisory services.
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true
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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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Anyone can invest in a closely held corporation.
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false
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Which of the following is NOT an area in which accountants usually practice?
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industrial Accounting
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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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ax accounting involves tax compliance and
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tax planning
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Managerial accounting is
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private accounting
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Public accountants work on the staff of federal, state, or local governmental units.
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false
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The SEC uses financial information to determine a company's tax base.
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false
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The Financial Accounting Standards Board is responsible for
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developing generally accepted accounting principles.
