Exam 1: Accounting: The Language of Business

The financial statements submitted to the SEC by a corporation must be ________ by an independent accountant to ensure their fairness and adherence to generally accepted accounting principles.

The separate entity assumption applies only to the corporate form of business.

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

Currently, generally accepted accounting principles are developed by the American Institute of Certified Public Accountants (AICPA).

Identify which of the following are considered OUTSIDE users of financial accounting information.

List at least five activities performed by managerial accountants.

Which statement below represents what GAAP stands for?

Tax planning includes

A partnership has ________ owners.

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

Managerial accountants usually do which of the following?

Managerial accounting is

The process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties is called________.

The Securities and Exchange Commission (SEC)requires that publicly owned corporations submit financial statements to it at least one time each year.

An act passed in response to the wave of corporate accounting scandals is the

Users of financial information, such as owners, managers and employees, are referred to as________ users.

Which of the following is NOT part of the process of accounting for financial information?

Which of the following is NOT a type of information communicated by the financial statements?

The results of the accounting process are summarized in periodic reports called ________.

Accounting is defined as the process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties.