Ch1-Accounting: The language of Business (game mode)

Which of the following is a true statement in regards to the International Accounting Standards Board?

The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries

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

auditing

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

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 principles

The names of three accounting jobs include all but:

logistics manager

A form of business entity owned by two or more people is called a(n) __________.

partnership

Managerial accounting is

private accounting

As the owner of a small business, you have decided to apply for a loan to expand your locations. Information that you most likely will need to provide to the lender include all but:

the average value of homes in your neighborhood

The CPA designation stands for:

Certified Public Accountant.

The organization that has the final say on financial accounting issues faced by publicly owned corporations is the:

Securities and Exchange Commission

Identify the form of business that is considered a separate legal entity.

a corporation

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

actuary

One requirement for becoming a CPA is to pass the:

Uniform CPA Exam

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

compliance

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

investment services

Accounting is called:

the language of business

Which of the following is the purpose of financial statements?

to periodically summarize data about a firm's financial affairs

All of the following are users of accounting information except:

. search engines on a website.

The Certified Bookkeeper exam includes all the parts below except:

Business Law.

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

CPA

To become a Certified Bookkeeper, one must meet all requirements below except:

Pass a criminal background check.

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

Securities and Exchange Commission (SEC)

An example of an economic entity is

a business

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

a firm's financial records and an owner's financial records

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

accounting

Financial statements are:

accumulated financial data summarized in periodic reports

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 financial statements submitted to the SEC by a corporation must be __________ by an independent accountant to ensure their fairness and adherence to generally accepted accounting principles.

audited

The Sarbanes-Oxley Act includes rules on

auditor rotation

Accounting is often referred to as the language of __________.

business

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

conducting independent audits of financial statements

The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the

corporation

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 Financial Accounting Standards Board is responsible for

developing generally accepted accounting principles

All of the following are goals of internal control except:

encourage noncompliance with management policies and applicable laws.

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

financial statements

Owners and managers need financial information in order to

make decisions

An organization that has two or more owners who are legally responsible for the debts and taxes of the business is a:

partnership.

Managerial accountants usually do which of the following?

prepare internal reports for management

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

publicly owned

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

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

sole proprietorship

Ownership in a corporation is evidenced by shares of __________.

stock

The owners of a corporation are called __________.

stockholders or shareholders

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

A partnership has __________ owners.

two or more