Financial Accounting Notes
An independent accountant who performs financial audits is a
(CPA)certified Public Accountant
The fallowing are all characteristics of a sole proprietorship except
A sole proprietorship is legally separated from its owner
To become a CPA, an individual
All the above (a, b and c)
The group of accounting educators who perform research to determine the possible effects on financial reporting and the economy and then offer their opinions about proposed FASB statements is the
American Accounting Association(AAA)
The following are government agencies except.
American Institute of certified public Accountants (AICPA)
Which of the following is not a service typically provided by a public accounting firms
Invested services
Which of the following is not a provision of the Sarbanes-Oxley Act
The Sarbanes-Oxley Act allows accountants from offering a broad range of consultation services to publicly traded companies that they audit.
The balance sheet is also called
The statement of financial positions
Amounts that a business must pay in the future are known as
accounts payable
When the owner invests cash in the business,
assets and owner's equity increase
When the firm pays its utilities bill upon receipt of that bill
assets decrease and expenses increase
When the owner withdraws cash for personal use
assets decrease and owner's equity decreases
When equipment is purchased on credit
assets increase and liabilities increase
When a business sells services on credit
assets increase and revenues increase
The review fro financial statements to assess their fairness and adherence to GAAP is
auditing
The financial statements submitted by a corporation to the SEC include the auditor's report. The auditor's report:
confirms that the financial information is prepared in conformity with generally accepted accounting principles
The entity that has final authority over the financial reporting of publicly owned corporations is the
securities and Exchanged Commission(SEC)
When a business collects an account receivable
total assets do not change