The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:

The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the: 

A. Objectivity principle.
B. Business entity assumption.
C. Going-concern assumption.
D. Revenue recognition principle.
E. Cost principle.

Answer: B

The private group that currently has the authority to establish generally accepted accounting principles is the:

The private group that currently has the authority to establish generally accepted accounting principles is the: 

A. APB.
B. FASB.
C. AAA.
D. AICPA.
E. SEC.

Answer: B

The committee that attempts to create more harmony among the accounting practices of different countries by identifying preferred practices and encouraging their worldwide acceptance is the:

The committee that attempts to create more harmony among the accounting practices of different countries by identifying preferred practices and encouraging their worldwide acceptance is the: 

A. AICPA.
B. FASB.
C. CAP.
D. SEC.
E. IASB.

Answer: E

The rules adopted by the accounting profession as guides in preparing financial statements are:

The rules adopted by the accounting profession as guides in preparing financial statements are: 

A. Comprised of both general and specific principles.
B. Known as generally accepted accounting principles.
C. Abbreviated as GAAP.
D. Intended to make information in financial statements relevant, reliable, and comparable.
E. All of these.

Answer: E

A corporation:

A corporation: 

A. Is a business legally separate from its owners.
B. Is controlled by the FASB.
C. Has shareholders who have unlimited liability for the acts of the corporation.
D. Is the same as a limited liability partnership.
E. All of these.

Answer: A

Businesses can take the following form(s):

Businesses can take the following form(s): 

A. Sole proprietorship.
B. Common stock.
C. Partnership.
D. A and C only.
E. All of these.

Answer: D

The accounting guideline that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is the:

The accounting guideline that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is the: 

A. Business entity principle.
B. Monetary unit principle.
C. Going-concern principle.
D. Cost principle.
E. Objectivity principle.

Answer: E

Social responsibility:

Social responsibility: 

A. Is a concern for the impact of our actions on society.
B. Is a code that helps in dealing with confidential information.
C. Is required by the SEC.
D. Requires that all businesses conduct social audits.
E. All of these.

Answer: A

Ethical behavior requires:

Ethical behavior requires: 

A. That auditors' pay not depend on the figures in the client's reports.
B. Auditors to invest in businesses they audit.
C. Analysts to report information favorable to their companies.
D. Managers to use accounting information to benefit themselves.
E. All of these.

Answer: A

A Certified Public Accountant

A Certified Public Accountant 

A. Must meet education and experience requirements
B. Must pass an examination
C. Must exhibit ethical character
D. May also be a Certified Management Accountant.
E. All of these.

Answer: E

Accounting certifications include the:

Accounting certifications include the: 

A. Certified Public Accountant.
B. Certified Management Accountant.
C. Certified Internal Auditor.
D. Personal Financial Specialist
E. All of these.

Answer: E

Career opportunities in accounting include:

Career opportunities in accounting include: 

A. Auditing.
B. Management consulting.
C. Tax accounting.
D. Cost accounting.
E. All of these.

Answer: E

External users of accounting information include:

External users of accounting information include: 

A. Shareholders.
B. Customers.
C. Creditors.
D. Government regulators.
E. All of these.

Answer: E

The operating functions of a business include:

The operating functions of a business include: 

A. Research and development.
B. Purchasing.
C. Marketing.
D. Distribution.
E. All of these.

Answer: E

The area of accounting aimed at serving the decision making needs of internal users is:

The area of accounting aimed at serving the decision making needs of internal users is: 

A. Financial accounting.
B. Managerial accounting.
C. External auditing.
D. SEC reporting.
E. Bookkeeping.

Answer: B

Internal users of accounting information include:

Internal users of accounting information include: 

A. Shareholders.
B. Managers.
C. Lenders.
D. Suppliers.
E. Customers.

Answer: B

The primary objective of financial accounting is:

The primary objective of financial accounting is: 

A. To serve the decision-making needs of internal users.
B. To provide financial statements to help external users analyze an organization's activities.
C. To monitor and control company activities.
D. To provide information on both the costs and benefits of looking after products and services.
E. To know what, when, and how much to produce.

Answer: B