Ch. 1 quiz

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

Accounts normally choose to practice in on of three areas: public accounting, managerial accounting, or _______ accounting

Governmental

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

Securities and exchange commission

Which of the following did not result from the sarabanes-oxley act

The requirement that accounting firms maintain the same lead auditor for a company for at least ten years

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.

Tax planning includes:

suggesting actions to reduce tax liability.

The owners of a corporation are called

Stockholders of shareholders

A business partnership consists of two or more owners

True

The securities and exchange commission (SEC) has authority to suspend trading of a company's shares on stock exchanges

True

When a partner leaves the company, the partnership is dissolved and a new partnership may be formed with the remaining partners

True