Intro to Accounting - Chapter 1 Quiz

The acronym GAAP stands for

Generally Accepted Accounting Principles

Which of the following is NOT a type of information communicated by the financial statements?

How long the business has been in operation

Which of the following is NOT part of the process of accounting for financial information?

Identifying

Since financial information is communicated in accounting terms, accounting is said to be the "language of business."

True

A corporation is usually managed by

a professional manager

A business that purchases a product from another business to sell to customers is called a

merchandising business

Examining a transaction or event to determine its fundamental significance to the business so that the relevent information may be properly processed is called

analyzing

Looking at events that have taken place and thinking about how they affect a business is called

analyzing

Stockholders own which type of business?

corporation

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

corporation