WGU CYC1 Accounting 1

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

Auditing

A form of the partnerships business entity is

LLP

An example of an economic entity is

a business

Management advisory services are designed to help

clients

Which of the following is NOT an area in which accountants usually practice?

industrial Accounting

An accounting system is designed to accumulate and classify data about a firm's financial affairs and summarize it in the general journal.

FALSE

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

The types of products and services the business provides

The Financial Accounting Standards Board is responsible for

developing generally accepted accounting principles.

Anyone can invest in a closely held corporation.

false

Public accountants work on the staff of federal, state, or local governmental units.

false

The SEC uses financial information to determine a company's tax base.

false

tax planning includes

suggesting actions to reduce tax liability.

Accountants provide financial information to various parties so they can make business decisions.

true

Public accounting firms provide three major types of services: auditing, tax accounting, and management advisory services.

true

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

true

The death or withdrawal of one partner ends the partnership

true

Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange Commission (SEC) final say on matters of financial reporting by publicly owned corporations.

TRUE

The death or withdrawal of one partner ends the partnership.

TRUE

The financial statements and the auditor's report must be made available to stockholders of publicly owned corporations.

TRUE

The Sarbanes-Oxley Act includes rules on

auditor rotation

The owners and managers of a business are the only users of the Financial Information.

false

When a business is organized as a sole proprietorship, the owner may combine his/her personal financial information with the business financial information.

false

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

identifying

The financial affairs of a business and the financial affairs of the owners should be

kept totally seperate

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

managerial accounting.

Managerial accounting is

private accounting

The corporations whose stock can be bought and sold on stock exchanges and in over-the-counter markets are referred to as

publicly owned corporations

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

sarbanes-Oxley Act.

ax accounting involves tax compliance and

tax planning

The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to determine the possible effects on financial reporting and the economy, is

the AAA

The purpose of accounting is to provide financial information about an economic or social entity.

true