Question 1

Which of the following is NOT a type of information communicated by the financial statements?

Accepted Answer

A)  whether or not the business is profitable
B)  how long the business has been in operation
C)  how much the business owes others
D)  what types of assets business ownsE) A) and B)
F) B) and D)

Question 2

The separate entity assumption applies only to the corporate form of business.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is NOT a service of public accounting firms?

Accepted Answer

A)  management advisory services
B)  tax accounting
C)  investment services
D)  auditingE) B) and C)
F) All of the above

Question 4

List at least five activities performed by managerial accountants.

Accepted Answer

Establishing accounting policies, managi...

Question 5

Which of the following is NOT part of the process of accounting for financial information?

Accepted Answer

A)  classifying
B)  communicating
C)  identifying
D)  recordingE) All of the above
F) C) and D)

Question 6

The Securities and Exchange Commission (SEC)requires that publicly owned corporations submit financial statements to it at least one time each year.

Accepted Answer

A) True 
 B)False

Question 7

Tax planning includes

Accepted Answer

A)  suggesting actions to reduce tax liability.
B)  preparing tax returns.
C)  correcting tax returns.
D)  auditing tax returns.E) All of the above
F) C) and D)

Question 8

The results of the accounting process are summarized in periodic reports called ________.

Accepted Answer

financial ...

Question 9

A partnership has ________ owners.

Accepted Answer

The answer of A partnership has ________ owners....

Question 10

The process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties is called________.

Accepted Answer

The answer of The process by which financial information about...

Question 11

Users of financial information, such as owners, managers and employees, are referred to as________ users.

Accepted Answer

The answer of Users of financial information, such as owners,...

Question 12

Which statement below represents what GAAP stands for?

Accepted Answer

A)  Generally Approved Accounting Practices.
B)  General Accepted Accounting Principles.
C)  Generally Anticipated Accounting Principles.
D)  Generally Accepted Accounting Policies.E) B) and C)
F) A) and B)

Question 13

The three major legal forms of business entity are the sole proprietorship, the partnership, and the________.

Accepted Answer

The answer of The three major legal forms of business...

Question 14

The financial statements submitted to the SEC by a corporation must be ________ by an independent accountant to ensure their fairness and adherence to generally accepted accounting principles.

Accepted Answer

The answer of The financial statements submitted to the SEC...

Question 15

Currently, generally accepted accounting principles are developed by the American Institute of Certified Public Accountants (AICPA).

Accepted Answer

A) True 
 B)False

Question 16

An act passed in response to the wave of corporate accounting scandals is the

Accepted Answer

A)  Sorbine-Oxide Act.
B)  Sardonic-Oxone Act.
C)  Saxon-Ordanly Act.
D)  Sarbanes-Oxley Act.E) A) and B)
F) All of the above

Question 17

Managerial accounting is

Accepted Answer

A)  government accounting.
B)  private accounting.
C)  tax accounting.
D)  public accounting.E) All of the above
F) A) and C)

Question 18

Identify which of the following are considered OUTSIDE users of financial accounting information.

Accepted Answer

A)  managers
B)  banks
C)  employees
D)  ownersE) A) and D)
F) C) and D)

Question 19

Accounting is defined as the process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties.

Accepted Answer

A) True 
 B)False

Question 20

Managerial accountants usually do which of the following?

Accepted Answer

A)  prepare and audit tax returns
B)  investigate companies for possible violations of law
C)  prepare internal reports for management
D)  audit financial statementsE) A) and C)
F) None of the above

Exam 1: Accounting: The Language of Business

A partnership has ________ owners.

Correct AnswerverifiedShow Answer

Managerial accounting is

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The three major legal forms of business entity are the sole proprietorship, the partnership, and the________.

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Managerial accountants usually do which of the following?

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Which of the following is NOT a type of information communicated by the financial statements?

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The financial statements submitted to the SEC by a corporation must be ________ by an independent accountant to ensure their fairness and adherence to generally accepted accounting principles.

Correct AnswerverifiedShow Answer

An act passed in response to the wave of corporate accounting scandals is the

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Identify which of the following are considered OUTSIDE users of financial accounting information.

Correct AnswerverifiedShow Answer

Users of financial information, such as owners, managers and employees, are referred to as________ users.

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The Securities and Exchange Commission (SEC)requires that publicly owned corporations submit financial statements to it at least one time each year.

Correct AnswerverifiedShow Answer

Accounting is defined as the process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties.

Correct AnswerverifiedShow Answer

List at least five activities performed by managerial accountants.

Correct AnswerverifiedEstablishing accounting policies, managi...View AnswerShow Answer

Currently, generally accepted accounting principles are developed by the American Institute of Certified Public Accountants (AICPA).

Correct AnswerverifiedShow Answer

Tax planning includes

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Which statement below represents what GAAP stands for?

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Which of the following is NOT part of the process of accounting for financial information?

Correct AnswerverifiedShow Answer

Which of the following is NOT a service of public accounting firms?

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The results of the accounting process are summarized in periodic reports called ________.

Correct Answerverifiedfinancial ...View AnswerShow Answer

The separate entity assumption applies only to the corporate form of business.

Correct AnswerverifiedShow Answer

The process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties is called________.

Correct AnswerverifiedShow Answer

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Establishing accounting policies, managi...
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financial ...
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