Deck 1: Introduction to Accounting

Question 1

The six major steps of the accounting process are analyzing,recording,classifying,summarizing,reporting,and interpreting.

Answer 1

True

Question 2

A CMA is a Certified Marketing Auditor.

Answer 2

False

Question 3

The Financial Accounting Standards Board develops generally accepted accounting principles to provide some assurance that companies are reporting business activities in a similar manner.

Answer 3

True

Question 4

​Interpreting refers to reviewing events that have taken place and determining how they affect a business.
​

Question 5

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

A) service business.
B) manufacturing business.
C) merchandising business.
D) nonprofit business.

Question 6

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

Question 7

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

Question 8

Since financial information is communicated in accounting terms and is the eyes and ears of management,accounting is said to be

A) the language of business.
B) public.
C) private.
D) nonprofit.

Question 9

A person who reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate and are being followed may be referred to as a(n)

A) bookkeeper.
B) accountant.
C) information processor.
D) internal auditor.

Question 10

Accountants design accounting information systems and analyze and interpret information.

Question 11

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

Question 12

Since financial information is communicated in accounting terms,accounting is said to be the "language of business."

Question 13

A partnership is owned by stockholders or shareholders and is managed by them.

Question 14

Stockholders may have very little influence on business decisions.

Question 15

A public accountant can achieve professional recognition as a Certified Public Accountant by meeting certain educational and experience requirements as determined by each state.

Question 16

The purpose of accounting is to provide financial information about the current operations and financial conditions of a business to individuals and organizations.

Question 17

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

Question 18

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

A) proprietorship
B) corporation
C) partnership with more than ten partners
D) partnership with only two partners

Question 19

A corporation is usually managed by

A) stockholders.
B) a professional manager.
C) a proprietor.
D) two or more partners.

Question 20

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

Question 21

Cost accountants provide a wide variety of services including

A) designing and implementing accounting information systems.
B) auditing reviews.
C) performing general accounting services.
D) analyzing the cost effectiveness of products produced and services provided.

Question 22

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

A) summarizing.
B) interpreting.
C) recording.
D) classifying.

Question 23

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

Question 24

Examining a transaction or event to determine its fundamental significance to the business so that the relevant information may be properly processed is called

A) recording.
B) analyzing.
C) classifying.
D) interpreting.

Question 25

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

A) proprietorships
B) hospitals
C) educational institutions
D) churches

Question 26

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

Question 27

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

A) GAAP
B) CIA
C) CMA
D) CLU

Question 28

The accountant who oversees the entire accounting process and is the principal accounting officer of the company is called the ____________________.

Question 29

The owners of a corporation are called ____________________.

Question 30

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

Question 31

Public accountants do NOT offer which of the following services?

A) auditing
B) tax preparation
C) management consulting
D) marketing analysis

Question 32

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

Question 33

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

A) budgeter.
B) journalist.
C) accounting clerk.
D) scribe.

Question 34

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

Question 35

____________________ design the accounting information system and focus on analyzing and interpreting information by studying the impact of alternative decisions.

Question 36

____________________ design the accounting information system and focus on analyzing and interpreting information by studying the impact of alternative decisions.

Question 37

The owners of a corporation are called ____________________.

Question 38

The accounting function of classifying is

A) thinking about how events affect the business.
B) gathering similar events to provide information that is easy to understand.
C) sorting and grouping similar items together.
D) deciding the meaning and importance of the information in various reports.

Question 39

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

Question 40

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

Question 41

Match the terms with the definitions.


-Looking at events that have taken place and thinking about how they affect the business.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 42

____________________ involves the application of standard review and testing procedures to be certain that proper accounting policies and practices have been followed.

Question 43

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

Question 44

____________________ is deciding the meaning and importance in various reports,which may include ratio analysis to help explain how pieces of information relate to one another.

Question 45

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

Question 46

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

Question 47

Match the terms with the definitions.


-A business that buys a product from another business to sell to customers.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 48

A(n)____________________ is owned by two or more people who assume the risks for the business and whose assets may be taken to pay creditors.

Question 49

Match the terms with the definitions.


-Reviewing the operating and accounting control procedures adopted by management to make sure the controls are adequate and being followed; assuring that accurate and timely information is provided.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 50

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

Question 51

Match the terms with the definitions.


-Looking at events that have taken place and thinking about how they affect the business.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 52

____________________ includes preparing various reports and financial statements and analyzing operating,investing,and financing decisions.

Question 53

A(n)____________________ is owned by two or more people who assume the risks for the business and whose assets may be taken to pay creditors.

Question 54

____________________ is deciding the meaning and importance in various reports,which may include ratio analysis to help explain how pieces of information relate to one another.

Question 55

Match the terms with the definitions.


-A business that buys a product from another business to sell to customers.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 56

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

Question 57

____________________ involves the application of standard review and testing procedures to be certain that proper accounting policies and practices have been followed.

Question 58

Match the terms with the definitions.


-Specializes in cash,payroll,accounts receivable,accounts payable,inventory,or purchases.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 59

Match the terms with the definitions.


-Specializes in cash,payroll,accounts receivable,accounts payable,inventory,or purchases.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 60

____________________ includes preparing various reports and financial statements and analyzing operating,investing,and financing decisions.

Question 61

Match the terms with the definitions.


-The rules that businesses must follow when preparing financial statements.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 62

Match the terms with the definitions.


-Includes preparing various reports and financial statements and analyzing operating,investing,and financing decisions.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 63

Match the terms with the definitions.


-Includes preparing various reports and financial statements and analyzing operating,investing,and financing decisions.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 64

Match the terms with the definitions.


-Reviewing and testing to be certain that proper accounting policies and practices have been followed.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 65

Match the terms with the definitions.


-Sorting and grouping similar items together rather than merely keeping a simple,diary-like record of numerous events.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 66

Match the terms with the definitions.


-A system of gathering financial information about a business and reporting this information to users.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 67

Match the terms with the definitions.


-Deciding the meaning and importance of the information in various reports.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 68

Match the terms with the definitions.


-Sorting and grouping similar items together rather than merely keeping a simple,diary-like record of numerous events.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 69

Match the terms with the definitions.


-A type of ownership structure in which there are many owners who usually employ professional managers.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 70

Match the terms with the definitions.


-Determining the cost of producing specific products or providing services and analyzing for cost effectiveness.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 71

Match the terms with the definitions.


-Reviewing and testing to be certain that proper accounting policies and practices have been followed.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 72

Match the terms with the definitions.


-A type of ownership structure in which one person owns the business.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 73

Match the terms with the definitions.


-The rules that businesses must follow when preparing financial statements.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 74

Match the terms with the definitions.


-A type of ownership structure in which there are many owners who usually employ professional managers.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 75

Match the terms with the definitions.


-Reviewing the operating and accounting control procedures adopted by management to make sure the controls are adequate and being followed; assuring that accurate and timely information is provided.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 76

Match the terms with the definitions.


-Determining the cost of producing specific products or providing services and analyzing for cost effectiveness.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 77

Match the terms with the definitions.


-A system of gathering financial information about a business and reporting this information to users.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 78

Match the terms with the definitions.


-The process in which accountants help managers develop a financial plan.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 79

Match the terms with the definitions.


-Deciding the meaning and importance of the information in various reports.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting

Question 80

Match the terms with the definitions.


-The process in which accountants help managers develop a financial plan.

A) accountant
B) accounting
C) accounting derk
D) analyzing
E) auditing
F) bookkeeper
G) budgeting
H) Certified Public Accountant
I) classifying
J)controller
K) corporation
L) cost accounting
M) financial accounting
N) generally accepted accounting principles
O) internal auditing
P) interpreting
Q) manufacturing business
R) merchandising business
S) para-accountant
T) partnership
U) recording
V) reporting
W) service business
X) sole proprietorship
Y) summarizing
Z) tax accounting