Acct Ch 1-Acct for a Service Business

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

T/F Creditors need detailed measures of business performance.

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

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

The accounting function of classifying is

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

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

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

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

Cost accountants provide a wide variety of services including

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

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

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

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

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

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

T/F A CMA is a Certified Marketing Auditor.

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

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

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

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

Public accountants do NOT offer which of the following services?

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

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

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

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

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

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

The owners of a corporation are called _____.

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

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

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

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

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

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

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

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

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

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

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

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

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