FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Accounting: The Language of Business

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

The SEC uses financial information to determine a company's tax base.

A) True
B) False

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

An independent accountant who is licensed by the state and provides accounting services to the public for a fee is a

A) CMA.
B) CIA.
C) CFE.
D) CPA.

E) B) and D)
F) C) and D)

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange Commission (SEC)final say on matters of financial reporting by publicly owned corporations.

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

Public accounting firms provide three major types of services: auditing, tax accounting, and management advisory services.

The owners and managers of a business are the only users of the financial information.

Accounting is often referred to as the language of ________.

The Securities and Exchange Commission (SEC)regulates the accounting methods and financial reporting of ________ owned corporations.

How do sole proprietorships, partnerships, and corporations differ?

Public accountants work on the staff of federal, state, or local governmental units.

Audited financial statements include an auditor's report. What does this auditor's report contain?

An accounting system is designed to accumulate and classify data about a company's financial activities and summarize them in the general journal.

All financial statements submitted to the SEC by publicly owned corporations must include an auditor's report prepared by

There are three general services public accountants offer. List and briefly describe each.

The Financial Accounting Standards Board has the authority to develop generally accepted accounting principles. Choose the option below that contains the steps used by the FASB in developing GAAP.

Cullen Company of country X and Shaw Industries of country Y have issued financial statements in compliance with the accounting principles of their respective countries. They would like to work together on a project and need to compare their current financial statements prior to starting the project. However, the accounting principles of the two countries differ. What organization might they turn to regarding this issue? (Give both the full name of the organization and its acronym.)What is the function of this organization?

A company issues periodic reports called

The following are all government agencies except the

The ________ (GAAP)must be followed by publicly owned companies and are changed and refined in response to changes in the environment in which businesses operate.

Owners and managers need financial information in order to