ACCNT 1303 Chap. 1 quiz

The Securities and Exchange Commission (SEC) regulates the accounting methods and reporting of ____________ corporations

Publicly owned

An example of an economic entity is

a politician

which of the following is NOT an occupation with similar job duties to accountants and auditors

actuary

All financial statements submitted to the SEC by publicly owned corporations must include an auditor's report prepared by

an independent certified public accountant

The Sarbanes-Oxley Act Includes rules on

auditor rotation

identify which of the following parties would not be involved in maintaining internal controls

banks

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

compliance

Owners are not personally responsible for the debts of the business if the form of business organization is

corporation

Which of the following is NOT a service of Public accounting firms?

investment services

Owners and managers need financial information in order to

make decision

The owners of a corporation are called__________

stockholders or shareholders

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

Corporation

The ___________________(GAAP) must be followed by publicly owned companies and are changed and refined in response to changes in the environment in which businesses operate

generally accepted accounting principle

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

Creditors

Which of the following represents the correct order in which the FASB develops Statements of Financial Accounting Standards?

discussion memorandum, public hearings, exposure draft, vote

Which of the following is NOT part of the process of accounting for financial info.

identifying

The separate entity assumption dictates that which of the following should be kept separate?

A firm's financial records and an owner's personal financial records

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

CPA

Which of the following is NOT an activity performed by managerial accountants?

Conducting independent audits of financial statements

Which of the following did NOT result from the Sarbanes-Oxley Act?

the requirement that accounting firms maintain the same lead auditor for a company for at least ten years