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