Financial Accounting Notes

An independent accountant who performs financial audits is a

(CPA)certified Public Accountant

The fallowing are all characteristics of a sole proprietorship except

A sole proprietorship is legally separated from its owner

To become a CPA, an individual

All the above (a, b and c)

The group of accounting educators who perform research to determine the possible effects on financial reporting and the economy and then offer their opinions about proposed FASB statements is the

American Accounting Association(AAA)

The following are government agencies except.

American Institute of certified public Accountants (AICPA)

Which of the following is not a service typically provided by a public accounting firms

Invested services

Which of the following is not a provision of the Sarbanes-Oxley Act

The Sarbanes-Oxley Act allows accountants from offering a broad range of consultation services to publicly traded companies that they audit.

The balance sheet is also called

The statement of financial positions

Amounts that a business must pay in the future are known as

accounts payable

When the owner invests cash in the business,

assets and owner's equity increase

When the firm pays its utilities bill upon receipt of that bill

assets decrease and expenses increase

When the owner withdraws cash for personal use

assets decrease and owner's equity decreases

When equipment is purchased on credit

assets increase and liabilities increase

When a business sells services on credit

assets increase and revenues increase

The review fro financial statements to assess their fairness and adherence to GAAP is

auditing

The financial statements submitted by a corporation to the SEC include the auditor's report. The auditor's report:

confirms that the financial information is prepared in conformity with generally accepted accounting principles

The entity that has final authority over the financial reporting of publicly owned corporations is the

securities and Exchanged Commission(SEC)

When a business collects an account receivable

total assets do not change