ACCT 2100--Chapter 1 Fall 2016

1.

1 point

A business entity owned by two or more people who are legally responsible for the debts and taxes of the business is called a(n)

limited liability corporation (LLC)

partnership

corporation

sole proprietorship

2.

1 point

____________ are certificates that represent ownership of a corporation.

treasury notes

bank checks

stocks

generally accepted accounting principles

3.

1 point

Users of accounting include:

owners and managers

investors and creditors

banks and tax authorities

all of the above

4.

1 point

A business or organization whose major purpose is to produce a profit for its owners is called a(n) __________________.

corporation

economic entity

partnership

sole proprietorship

5.

1 point

GAAP is developed by _____________.

the Financial Accounting Standards Board

business owners

stockholders

United States Congress

6.

1 point

___________ is/are periodic reports of a firm's financial position or operating results.

auditor's reports

tax accounting

guiding principles

financial statements

7.

1 point

Define the separate entity assumption.

8.

1 point

The accounting system is designed to:

exploit stockholders of the company

record data, filter data, report data

accumulate data, classify data, summarize data, interpret data

eliminate individuals from owning or starting businesses.

9.

1 point

__________ enforces security laws and protects against infractions like insider trading, accounting fraud, and companies providing misleading information about their financial condition.

Financial Accounting Standards Board (FASB)

U. S. Department of the Treasury

Independent auditors

Securities Exchange Commission (SEC)

10.

1 point

_____________ is the review of financial statements to assess their fairness and adherence to generally accepted accounting principles.

interpreting

auditing

financing

marketing

11.

1 point

A business entity owned by one person who is legally responsible for the debts and taxes of the business is a(n)

sole proprietorship

corporation

partnership

franchise

12.

1 point

Accounting is the process by which _________ _________ about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties.

financial information

stock properties

customer news

cash regulations

13.

1 point

___________________ provides financial information about a business or a nonprofit organization.

accounting

economics

finance

GAAP

14.

1 point

A publicly or privately owned business entity that is separate from its owners and has a legal right to own property and do business in its own name is called a(n)

partnership

limited liability partnership

sole proprietorship

corporation

15.

1 point

What legislation was passed in response to a wave of corporate scandal?

HIPPA

Sarbanes-Oxley Act

ERISA

Affordable Care Act (AFA)

16.

1 point

Accounting is often called

the world according to Pacioli

a headache

the language of business

a legal entity

17.

1 point

________________ is a business entity but not a legal entity.

partnership

sole proprietorship

corporation

both (a) and (b)

18.

1 point

Which of the following forms of business entity is considered to have unlimited life?

partnership

sole proprietorship

corporation

both (a) and (b)

19.

1 point

When would a partnership end?

one or more partners withdraw

when a partner dies

when the partners decide to close the business

all of the above

20.

1 point

A creditor is defined as

an undesirable associate

an immoral being

one to whom money is owed

a nuisance