Chapter 1- Quiz

An independent accountant who provides accounting services to the public for a fee is a A. CIA B. CFE C. CMA D. CPA

CPA

All financial statements submitted to the SEC by publicly owned corporations must include an auditor's report prepared by A. an internal auditor B. the firm's managerial accountant C. an independent certified public accountant D. anyone in the accounting department

an independent certified public accountant

The review of financial statements to assess their fairness and adherence to GAAP is A. accounting B. preparation C. compliance D. auditing

auditing

Identify which of the following are considered OUTSIDE users of financial accounting information. A. employees B. managers C. owners D. banks

banks

The Financial Accounting Standards Board is responsible for A. auditing financial statements B. developing generally accepted accounting principles C. establishing accounting systems for businesses D. making recommendations to the Securities and Exchange Commission

developing generally accepted accounting principles

A firm issues periodic reports called A. financial statements B. summaries C. tax returns D. audits

financial statements

Identify the statement below that represents what GAAP stands for A. Generally Accepted Accounting Principles B. Generally Accepted Auditing Principles C. Generally Accepted Actuary Principles D. Generally Approved Accounting Principles

generally accepted accounting principles

Owners and managers need financial information in order to A. grant loans B. issue credit C. collect taxes D. make decisions

make decisions

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 A. financial accounting B. managerial accounting C. auditing D. cost accounting

managerial accounting

The government agency that has final authority over the financial reporting of publicly owned corporations is A. the Securities and Exchange Commission B. the Federal Trade Commission C. the Internal Revenue Service D. the Financial Accounting Standards Board

the Securities and Exchange Commission