Acct Ch 1-Acct for a Service Business

T/F Purpose of acct is to provide financial info about current operations & financial conditions of a business.

Which of the following types of businesses is owned by stockholders?

The owners of a corporation are called _____.

One who assumes all risks for the business and whose personal assets can be taken to pay creditors is called a(n)

Writing/using one of the latest technological advances to enter a transaction in the acct. records is called summarizing

_____ is the process by which accountants help managers develop a financial plan.

T/F The Fin Acct Standards Board develops generally accepted acct. principles to provide similar business reporting

The accountant who oversees the entire acct process and is the principal accounting officer of the company is called the

_____ involves the application of standard review & testing procedures to be certain practices are being followed.

Which of the following does NOT use nonprofit accounting guidelines and procedures?

T/F Cost accounting is used to develop a financial plan for a company.

T/F Because financial info is communicated in accounting terms, accounting is said to be the "language of business"

T/F A partnership is owned by stockholders and is managed by them.

A _____ is owned and controlled by 2 or more people who assume the risks for the business.

Public accountants do NOT offer which of the following services?

A person who records, sorts, and files accounting information in accounting records may be referred to as a(n)

T/F Stockholders may have very little influence on business decisions.

T/F A public accountant can achieve professional recognition as a CPA meeting certain educ and experience requirements

A person who reviews the operating & acct control procedures to ensure controls are being followed may be referred to as

A business that buys a product from another business to sell to customers is called a(n)

A business that purchases a product from another business to sell to customers is called a

_____ is the aggregation of many similar events to provide information that is easy to understand.

A business that makes a product to sell is a(n) called _____ business.

T/F The principal accounting officer of a company is called a public accountant.

Cost accountants provide a wide variety of services including

Looking at events that have taken place and thinking about how they affect a business is called _____.

Examining a transaction or event to determine its fundamental significance to the business is called

Entering financial information about events affecting the company into the accounting system is called _____.

Rules that businesses must follow when preparing financial statements are called _____.

Bringing together various items of information to determine or explain a result is

_____ is deciding the meaning & importance in various reports, which may include ratio analysis.

T/F The 6 major steps of the acct process are analyzing, recording, classifying, summarizing, reporting & interpreting

An internal auditor can achieve recognition in internal auditing by receiving which of the following certificates?

T/F Owners are most interested in a company's profitability and current financial performance.

T/F Generally accepted accounting principles are procedures and guidelines to be followed in the acct/reporting process.

_____ includes preparing various reports & financial stmts & analyzing operating, investing, & financial decisions.

_____ design the acct info system & focus on analyzing & interpreting information by studying the impact of decisions

T/F A business that makes a product to sell is called a manufacturing business.

T/F Creditors need detailed measures of business performance.

The accounting function of classifying is

T/F A CMA is a Certified Marketing Auditor.

T/F Interpreting refers to reviewing events that have taken place & determining how they affect a business.

T/F Accountants design accounting information systems and analyze and interpret information.