Chapter 1• what is accounting

Which of the following is not an occupation with similar job duties to accountants and auditors

Actuary

CPA is ?

An independent accountant who is licensed by the state and the providers accounting service to the public for a fee

The Sarbanes Oxley act includes rules on?

Auditor rotation

Identify which of the following parties would not be involved in maintaining internal contents

Banks

Management Advisory Services are helping who

Clients

What's not a task undertaken by the accountant within an organization?

Create generally accepted accounting principles upon which the accounting system is based

What's not a service of public accounting firms?

Investment services

Owners and Managers need financial info in order to what?

Make decisions

Requires accounting firms to maintain the same time lead auditor for a company atleast 10 years is?

Not a result of sarbanes oxley act

Managerial Accountants usually do what of the following?

Prepare internal reports for management

What accurately describes tax compliance ?

Preparing tax returns and the audit of those returns by the irs

Managerial Accounting

Private accounting

Tax planning includes what

Suggesting actions to reduce tax liability

Identifying is not part of the process of accounting for financial info?

TRUE

Auditing is what

The review of financial statements to assess their fairness and adherence to GAAP

What's not a goal of an accounting system?

To interpret the relative success of a business through the examination of data about its financial affairs

Which of the following is not a goal of the internal controls implemented by owners and managers?

To reduce expenses through the use of efficient processes

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

accounting

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

audited

Accounting is often referred to as the language of

business

Tax accounting is a service offered by public accounting firms that involves tax and tax planning.

compliance

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

corporation

The people, companies, or government agencies to whom a firm owes money are called

creditors

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

financial statements

Accountants normally choose to practice in one of three areas: public accounting, managerial accounting, or Level: Easy accounting.

governmental

Generally accepted accounting are financial accounting standards that are changed and refined in response to changes in the environment in which businesses operate

principles

The Securities and Exchange Commission (SEC) regulates the accounting methods and financial reporting of _ owned corporations.

publicly

Nonprofit organizations, such as cities, public schools, and public hospitals, are referred to as _ entities.

social

A form of business entity owned by one person is called a(n)

sole proprietorship

A partnership has Level: Easy Ans: two Section: I LO: 1-4 or more owners. 46. Ownership

stock

The owners of a corporation are called

stockholders; shareholders

To periodically summarize data about about a firm's financial affairs is what?

Purpose of financial statements

Which of the following is not an activity performed by managerial accountants

Conducting independent audits of financial statements

Ownership in a corporation is evidenced by shares of

stock