Question 1

A partnership has ____________________ or more owners.

Accepted Answer

The answer of A partnership has ____________________ or more owners....

Question 2

Most owners and managers rely heavily on the accountant's judgment and knowledge when making financial decisions.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

Auditing: the review of financial statem...

Question 4

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

Accepted Answer

A)   the Securities and Exchange Commission.
B)   the Federal Trade Commission.
C)   the Internal Revenue Service.
D)   the Financial Accounting Standards Board.E) A) and D)
F) C) and D)

Question 5

The death or withdrawal of one partner ends the partnership.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT a service of public accounting firms?

Accepted Answer

A)   Auditing
B)   Tax accounting
C)   Management advisory services
D)   Investment servicesE) A) and D)
F) None of the above

Question 7

Owners are not personally responsible for the debts of the business if the form of business organization is

Accepted Answer

A)   the sole proprietorship.
B)   the partnership.
C)   the corporation.
D)   the nonprofit organization.E) A) and B)
F) A) and D)

Question 8

The purpose of accounting is to provide financial information about an economic or social entity.

Accepted Answer

A) True 
 B)False

Question 9

You have just entered college and decide to pursue a career as an accountant. What are the three areas in which an accountant can practice?

Accepted Answer

Public accounting, m...

Question 10

What is the "language of business?" List three groups who use this financial information.

Accepted Answer

Accounting is the language of business. ...

Question 11

Ownership in a corporation is evidenced by shares of ____________________.

Accepted Answer

The answer of Ownership in a corporation is evidenced by...

Question 12

Generally accepted accounting ____________________ are financial accounting standards that are changed and refined in response to changes in the environment in which businesses operate.

Accepted Answer

The answer of Generally accepted accounting ____________________ are financial accounting...

Question 13

The Sarbanes-Oxley Act includes rules on

Accepted Answer

A)   auditor retention.
B)   auditor reliability.
C)   auditor rotation.
D)   auditor reporting.E) None of the above
F) A) and B)

Question 14

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

Accepted Answer

It contains the auditor's opin...

Question 15

The three major legal forms of business entity are the sole proprietorship, the partnership, and the ____________________.

Accepted Answer

The answer of The three major legal forms of business...

Question 16

When a business is organized as a sole proprietorship, the owner may combine his/her personal financial information with the business financial information.

Accepted Answer

A) True 
 B)False

Question 17

The people, companies, or government agencies to whom a firm owes money are called ____________________.

Accepted Answer

The answer of The people, companies, or government agencies to...

Question 18

The FASB develops Statements of Financial Accounting Standards in the following order

Accepted Answer

A)   issues an exposure draft, obtains responses to the exposure draft, issues a statement of principle, issues a discussion memorandum, obtains responses to the discussion memorandum
B)   issues a discussion memorandum, obtains responses to the discussion memorandum, issues an exposure draft, obtains responses to the exposure draft, issues a statement of principle
C)   issues a discussion memorandum, obtains responses to the discussion memorandum, issues a statement of principle, issues an exposure draft, obtains responses to the exposure draft
D)   issues a statement of principle, issues a discussion memorandum, obtains responses to the discussion memorandum, issues an exposure draft, obtains responses to the exposure draftE) A) and D)
F) B) and D)

Question 19

Tax planning includes

Accepted Answer

A)   preparing tax returns.
B)   auditing tax returns.
C)   correcting tax returns.
D)   suggesting actions to reduce tax liability.E) B) and D)
F) B) and C)

Question 20

Discuss the differences among: entity, economic entity, and social entity.

Accepted Answer

Entity-recognized as having it...

Exam 1: Accounting: the Language of Business

Generally accepted accounting ____________________ are financial accounting standards that are changed and refined in response to changes in the environment in which businesses operate.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedIt contains the auditor's opin...View AnswerShow Answer

The three major legal forms of business entity are the sole proprietorship, the partnership, and the ____________________.

Correct AnswerverifiedShow Answer

What is the "language of business?" List three groups who use this financial information.

Correct AnswerverifiedAccounting is the language of business. ...View AnswerShow Answer

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

Correct AnswerverifiedAuditing: the review of financial statem...View AnswerShow Answer

Discuss the differences among: entity, economic entity, and social entity.

Correct AnswerverifiedEntity-recognized as having it...View AnswerShow Answer

Most owners and managers rely heavily on the accountant's judgment and knowledge when making financial decisions.

Correct AnswerverifiedShow Answer

A partnership has ____________________ or more owners.

Correct AnswerverifiedShow Answer

The FASB develops Statements of Financial Accounting Standards in the following order

Correct AnswerverifiedShow Answer

The people, companies, or government agencies to whom a firm owes money are called ____________________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Owners are not personally responsible for the debts of the business if the form of business organization is

Correct AnswerverifiedShow Answer

The death or withdrawal of one partner ends the partnership.

Correct AnswerverifiedShow Answer

Tax planning includes

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act includes rules on

Correct AnswerverifiedShow Answer

Which of the following is NOT a service of public accounting firms?

Correct AnswerverifiedShow Answer

Ownership in a corporation is evidenced by shares of ____________________.

Correct AnswerverifiedShow Answer

When a business is organized as a sole proprietorship, the owner may combine his/her personal financial information with the business financial information.

Correct AnswerverifiedShow Answer

You have just entered college and decide to pursue a career as an accountant. What are the three areas in which an accountant can practice?

Correct AnswerverifiedPublic accounting, m...View AnswerShow Answer

The purpose of accounting is to provide financial information about an economic or social entity.

Correct AnswerverifiedShow Answer

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It contains the auditor's opin...
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Correct Answer
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Accounting is the language of business. ...
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Auditing: the review of financial statem...
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Correct Answer
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Entity-recognized as having it...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Public accounting, m...
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Correct Answer
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