What occurred during the Enron Scandal?

They engaged in accounting fraud to lie about their profits

What is not a job of a managerial accountant?

Audit financial records of other businesses

What is a private corporation?

A company that is not traded on stock exchanges

Which is false regarding the Sarbanes Oxley Act?

It requires companies to provide financial aid to employees

The seperate entity assumption states

The business’ finances and personal finances of the owner are kept separate

What is the job of a financial analyst?

Analyze investments to help clients decide how to best invest their money

Accounting standards developed and applied by professional accountants

To successfully run a business, we must answer the following questions EXCEPT

How many employees did the business hire last month?

A representation of ownership of the corporation

Which is not a reason for a sole proprietorship ending?

The business owner dissolves the partnership

the process by which financial information of a business is recorded

What is a Corporation?

A business legally separate from its owners

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Accounting Chapter 1

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Questions 25

Answers

1
What was the accounting firm that was involved with both the Enron and WorldCom Scandal?
Ernst and Young
Deloitte
KPMG
Arthur Andersen
2
What occurred during the Enron Scandal?
They used misleading advertising to inflate their market share
They secretly bought out competitors
They engaged in accounting fraud to lie about their profits
They engaged in illegal labor practices to cut costs
3
Every year public companies send financial statements to the SEC which are then audited by ___
Homeland Security
The SEC themselves
Company Accountants
Independent Accountants
4
A certified public accountant must pass the ___ to become certified
Uniform CPA Examination
ACT
SAT
MCAT
5
What is not a job of a managerial accountant?
Audit financial records of other businesses
Prepare tax forms and do tax planning
Provide financial advice to management
Establish accounting policies
6
Which of the following is a job within accounting?
Sales Manager
Human Resources Specialist
Bookkeeper
Marketing Analyst
7
If a corp goes bankrupt, stockholders can lose:
any dividends already received
their personal assets
only their initial investment
future profits
8
A government agency a governmental accountant may work for is:
Marketing firms
FBI
Non profits
Private companies
9
Who developed GAAP?
US Dept of Commerce
IMF
FASB
The World Bank
10
What is a private corporation?
A company that is publicly traded but privately managed
A company that is not traded on stock exchanges
A business owned by government entities
A non-profit with private funding
11
Which is false regarding the Sarbanes Oxley Act?
It requires companies to provide financial aid to employees
It cracked down on corporate corruption
Enron and WorldCom Scandals were instrumental in it passing
AKA Public Company Accounting Reform and Investor Protection Act of 2002
12
When did the GAAP process change?
2001
2009
1999
2018
13
Financial report users inside the business include all EXCEPT
Tax Authorities
Managers
Employees
Owners
14
The seperate entity assumption states
The business must report all financials of its employees
The business’ finances and personal finances of the owner are kept separate
Business transactions should be recorded in a personal bank account
The business must personally guarantee all company debt
15
What is the job of a financial analyst?
Analyze investments to help clients decide how to best invest their money
Manage daily accounting tasks like payroll and invoicing
Handle recruitment within a business
Plan and execute marketing strategies for businesses
16
What is GAAP?
A standard for employee evaluations
A tax regulation framework for businesses
Accounting standards developed and applied by professional accountants
Guidelines for international trade practices
17
To successfully run a business, we must answer the following questions EXCEPT
What is the change in sales volume?
How much cash does the business have?
How many employees did the business hire last month?
What is the profit or loss?
18
What is a stock?
A representation of ownership of the corporation
A document certifying ownership of business assets
A company’s annual financial report to investors
A type of short-term loan issued by companies
19
Which is not a reason for a sole proprietorship ending?
Owner closes the firm
The business owner dissolves the partnership
Owner dies
Owner cannot pay his debts
20
What is accounting?
the study of how business's expand and grow
the process by which financial information of a business is recorded
the process of setting prices for products and services in a business
the practice of managing only a business's cash flow and investments
21
Banks use financial information to
assess firm's ability to pay bills
decide when to make a loan
determine tax base for income taxes
send information to regulators
22
Which is not a field of accounting that an accountant works in?
Governmental
Public
Creative Accounting
Managerial
23
Managerial accounting is also known as:
private accounting
transactional accounting
compliance accounting
external accounting
24
What is a CPA?
Certified Practice Accountant
Chief Public Accountant
Certified Public Accountant
Chartered Professional Advisor
25
What is a Corporation?
A company owned by several partners
A company owned by the government
A business legally separate from its owners
A company owned by one person

Accounting Chapter 1 Flashcards | StudBud