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