Chapter 1 Mini Quiz

The following are all government agencies except the

AICPA

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

CPA

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

Owners and managers need financial information in order to

make decisions.

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

Corporation

Which statement below represents what GAAP stands for?

General Accepted Accounting Principles

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

Kept totally and completely separate

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

Securities and Exchange Commission

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

a corporation

A company issues periodic reports called

financial statements