Chapter 1 Accounting Study Guide Part 2

Entering financial information about events affecting the company into the accounting system is called recording analyzing classifying intrepreting

recording

One who assumes all risks for the business and whose personal assets can be taken to pay creditors is called a(n) sole proprietor overseeing evaluating classifying

sole proprietor

The owners of a corporation are called stockholders shareholders officers creditors employees

stockholders shareholders

is the aggregation of many similar events to provide information that is easy to understand. summarizing journalizing classifying analyzing

summarizing

Which of the following does NOT use nonprofit accounting guidelines and procedures? a. proprietorshipsCorrect b. churches c. hospitals d. educational institutions

a. proprietorships

design the accounting information system and focus on analyzing and interpreting information by studying the impact of alternative decisions. accountants officers stockholders bankers

accountants

Looking at events that have taken place and thinking about how they affect a business is called analyzing recording evaluating determining

analyzing

An internal auditor can achieve professional recognition in internal auditing by receiving which of the following certificates? a. GAAP b. CIA c. CLU d. CMA

b. CIA

A person who records, sorts, and files accounting information in accounting records may be referred to as a(n) a. budgeter. b. accounting clerk. c. journalist. d. scribe.

b. accounting clerk.

Cost accountants provide a wide variety of services including a. auditing reviews. b. analyzing the cost effectiveness of products produced and services provided. c. performing general accounting services. d. designing and implementing accounting information systems.

b. analyzing the cost effectiveness of products produced and services provided.

Public accountants do NOT offer which of the following services? a. auditing b. marketing analysis c. management consulting d. tax preparation

b. marketing analysis

The accountant who oversees the entire accounting process and is the principal accounting officer of the company is called the controller chief financial officer chief executive officer president

controller

Examining a transaction or event to determine its fundamental significance to the business so that the relevant information may be properly processed is called a. interpreting. b. classifying. c. recording. d. analyzing.

d. analyzing.

The accounting function of classifying is a. gathering similar events to provide information that is easy to understand. b. deciding the meaning and importance of the information in various reports. c. thinking about how events affect the business. d. sorting and grouping similar items together. Feedback Area

d. sorting and grouping similar items together.

Bringing together various items of information to determine or explain a result is a. recording. b. interpreting. c. classifying. d. summarizing.

d. summarizing.

Rules that businesses must follow when preparing financial statements are called generally accepted accounting principles FASB IASB accounting policies and procedures

generally accepted accounting principles

A business that buys a product from another business to sell to customers is called a(n) business merchandising service manufacturing international

merchandising