VYC1 Test
1.True
1.In a sole proprietorship the owner is responsible for the debts of the business if the firm is unable to pay?
1.False
1.The owners of a partnership business are referred to as stockholders?
2.True
2.Public accounting firms provide three major types of services: auditing, taxing accounting, and management advisory services?
2.False
2.The separate entity assumption applies only to the corporate form of business?
3.False
3.Currently, generally accepted accounting principles are developed by the American Institute of Certified Public Accountants?
3.True
3.The financial statements and the auditor's report must be made available to stockholders of publicly owned corporations?
4.False
4.A business is an example of a social entity?
4.True
4.An economic entity is an organization whose major purpose is to produce a profit for its owners?
5.False
5.Anyone can invest in a closely held corporation?
5.True
5.The Securities and Exchange Commission requires that publicly owned corporations submit financial statements to it each year?
6.True
6.Laws passed by Congress in 1933 and 1934 gave the SEC final say on matters of financial reporting by publicly owned corporations?
6.False
6.The SEC uses financial information to determine a company's tax base?
7.False
7.Does the SEC determine a businesses tax base?
7.True
7.Private accounting is also referred to as managerial accounting?
8.False
8.A corporation whose stock can be bought and sold is known as a "closely held corporations?"
8.True
8.The death or withdrawal of one partner ends the partnership?
9.True
9.Is the main purpose of an economic entity to make money?
Sole proprietorship
A form of business entity owned by one person is called a(n)
Governmental accounting
Accountants normally choose to practice in one of three areas: public accounting, managerial accounting, or
An independent certified public accountant
All financial statements submitted to the SEC by publicly owned corporations must include an auditor's report prepared by
A business
An example of an economic entity is
Principles
Generally accepted accounting _______ are financial accounting standards that are changed and refined in response to changes in the environment in which businesses operate
Economic Entity
Is a business a Social or Economic Entity?
Corporations
Owners are not personally responsible for the debts of the business if the form of business organization is
Stocks
Ownership in a corporation is evidenced by shares of
Services
Tax accounting is a service offered by public accounting firms that involves tax _____ and tax planning
Developing generally accepted accounting principles
The Financial Accounting Standards Board is responsible for
The FASB
The General Accepted Accounting Principles are developed by
The SEC
The Government Agency that has final authority over the financial reporting of publicly owned corporations is
Managerial Accounting
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
Publicly owned corporations
The corporations whose stock can be bought and sold on stock exchanges and in over-the-counter markets are referred to as
Kept totally separate
The financial affairs of a business and the financial affairs of the owners should be
Audited
The financial statements submitted to the SEC by a corporation must be _______ by an outside accountant to ensure their fairness and adherence to generally accepted accounting principles
Corporations
The form of a business organization that is not affected by the withdrawal or death of an owner and can continue forever is
The SEC
The government agency that has final authority over the financial reporting of publicly owned corporations is
Debtors
The people, companies, or government agencies to whom a firm owes money are called
Statements
The results of the accounting process are summarized in periodic reports called
Corporation
The three major legal forms of business entity are the sole proprietorship, the partnership, and the