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Which of the following is NOT an area in which accountants usually practice?
Industrial Accounting
Managerial accountants usually do which of the following?
establish accounting policies
Identify which of the following are considered OUTSIDE users of financial accounting information
banks
An example of an economic entity is
a business.
The form of a business organization that is not affected by the withdrawal or death of an owner and can continue forever is
the corporation.
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 a type of information communicated by the financial statements?
the types of products and services the business provides
The Financial Accounting Standards Board is responsible for
developing generally accepted accounting principles
The government agency that has final authority over the financial reporting of publicly owned corporations is
the Securities and Exchange Commission
The financial affairs of a business and the financial affairs of the owners should be
kept totally separate
All financial statements submitted to the SEC by publicly owned corporations must include an auditor’s report prepared by
an independent certified public accountant.
The area of accounting that involves the preparation of internal reports for a firm’s executives and the analysis of the data in these reports to aid in decision making is known as
managerial accounting
The corporations whose stock can be bought and sold on stock exchanges and in over-the-counter markets are referred to as
publicly owned corporations
The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to determine the possible effects on financial reporting and the economy, is
the AAA.
Owners are not personally responsible for the debts of the business if the form of business organization is
the corporation
Identify the form of business that is considered a separate legal entity.
a corporation
Identify the advantages of forming a business as an S Corporation
owners avoid double taxation and owners have limited liability
A firm issues periodic reports called
financial statements.
Which of the following is NOT part of the process of accounting for financial information
identifying
Which of the following is a true statement in regards to the International Accounting Standards Board?
The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries
Which of the following is NOT a service of public accounting firms
investment services
Tax accounting involves tax compliance and
tax planning.
Tax planning includes
suggesting actions to reduce tax liability
Managerial accounting is
private accounting.
The following are all government agencies except
AICPA.
An act passed in response to the wave of corporate accounting scandals is the
Sarbanes-Oxley Act.
Owners and managers need financial information in order to
make decisions.
The Sarbanes-Oxley Act includes rules on
auditor rotation.
A form of the partnerships business entity is
LLP.
Identify the statement below that represents what GAAP stands for
Generally Accepted Accounting Principles.
The review of financial statements to assess their fairness and adherence to GAAP is
auditing.
Management advisory services are designed to help
clients.
An independent accountant who provides accounting services to the public for a fee is a
CPA.
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
steps include: issuing a discussion memorandum, issuing an exposure draft, and issuing a statement of principle.
Categories: Financial Accounting