Question 1

Management advisory services are designed to help

Accepted Answer

A)  employers.
B)  government agencies.
C)  clients.
D)  creditors.E) C) and D)
F) A) and D)

Question 2

Anyone can invest in a closely held corporation.

Accepted Answer

A) True 
 B)False

Question 3

A form of business entity owned by one person is called a(n)________.

Accepted Answer

The answer of A form of business entity owned by...

Question 4

Tax accounting involves tax compliance and

Accepted Answer

A)  tax planning.
B)  tax configuration.
C)  tax evaluation.
D)  tax obfuscation.E) B) and C)
F) None of the above

Question 5

List the "Big Four" public accounting firms in the United States.

Accepted Answer

Deloitte & Touche, E...

Question 6

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

Accepted Answer

A)  Financial Accounting Standards Board.
B)  Internal Revenue Service.
C)  Federal Trade Commission.
D)  Securities and Exchange Commission.E) A) and C)
F) None of the above

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The financial statements and the auditor's report must be made available to stockholders of publicly owned corporations.

Accepted Answer

A) True 
 B)False

Question 9

In a sole proprietorship, the owner is NOT responsible for the debts of the business if the company is unable to pay.

Accepted Answer

A) True 
 B)False

Question 10

A business partnership consists of two or more owners.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Accountants normally choose to practice in one of three areas: public accounting, managerial accounting, or ________ accounting.

Accepted Answer

The answer of Accountants normally choose to practice in one...

Question 13

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 14

The Sarbanes-Oxley Act includes rules on

Accepted Answer

A)  auditor rotation.
B)  auditor reporting.
C)  auditor retention.
D)  auditor reliability.E) C) and D)
F) A) and D)

Question 15

A form of the partnerships business entity is

Accepted Answer

A)  DBA.
B)  LLC.
C)  LLP.
D)  INP.E) A) and B)
F) A) and C)

Question 16

The Financial Accounting Standards Board is responsible for

Accepted Answer

A)  auditing financial statements.
B)  making recommendations to the Securities and Exchange Commission.
C)  developing generally accepted accounting principles.
D)  establishing accounting systems for businesses.E) C) and D)
F) A) and B)

Question 17

The financial activities of a business and the financial activities of the owners should be

Accepted Answer

A)  combined only if the owner wants them to be.
B)  kept totally and completely separate.
C)  combined in the firm's accounting records.
D)  reported in different parts of the firm's accounting records.E) A) and D)
F) None of the above

Question 18

Which of the following is NOT an area in which accountants usually practice?

Accepted Answer

A)  Managerial (Private) Accounting
B)  Public Accounting
C)  Industrial Accounting
D)  Governmental AccountingE) None of the above
F) A) and C)

Question 19

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

Accepted Answer

A)  the types of products and services the business provides
B)  the equity, or value, of the business
C)  the amount of revenue earned by the business
D)  the amount spent on costs (expenses) of the businessE) C) and D)
F) A) and D)

Question 20

Accountants provide financial information to various parties so they can make business decisions.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting: The Language of Business

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Accountants provide financial information to various parties so they can make business decisions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Tax accounting involves tax compliance and

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A business partnership consists of two or more owners.

Correct AnswerverifiedShow Answer

The financial activities of a business and the financial activities of the owners should be

Correct AnswerverifiedShow Answer

The Financial Accounting Standards Board is responsible for

Correct AnswerverifiedShow Answer

Which of the following is NOT an area in which accountants usually practice?

Correct AnswerverifiedShow Answer

A form of business entity owned by one person is called a(n)________.

Correct AnswerverifiedShow Answer

List the "Big Four" public accounting firms in the United States.

Correct AnswerverifiedDeloitte & Touche, E...View AnswerShow Answer

Accountants normally choose to practice in one of three areas: public accounting, managerial accounting, or ________ accounting.

Correct AnswerverifiedShow Answer

A form of the partnerships business entity is

Correct AnswerverifiedShow Answer

In a sole proprietorship, the owner is NOT responsible for the debts of the business if the company is unable to pay.

Correct AnswerverifiedShow Answer

Anyone can invest in a closely held corporation.

Correct AnswerverifiedShow Answer

Management advisory services are designed to help

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act includes rules on

Correct AnswerverifiedShow Answer

The financial statements and the auditor's report must be made available to stockholders of publicly owned corporations.

Correct AnswerverifiedShow Answer

Correct Answer
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Deloitte & Touche, E...
View Answer

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