Question 1
The review of financial statements to assess their fairness and adherence to GAAP is
ANSWER
Auditing
Question 2
An independent accountant who performs financial audits is a
ANSWER
Certified Public Accountant (CPA)
Question 3
To become a CPA, an individual
ANSWER
Must have a certain number of college credits in accounting courses.
Pass the Uniform CPA Examination.
Fulfill the experience requirements of the state of practice.
Question 4
Which of the following is not a service typically provided by a public accounting firms?
1
,ANSWER
Investing services
Question 5
The entity that has final authority over the financial reporting of publicly owned
corporations is the
ANSWER
Securities and Exchange Commission (SEC).
Question 6
Which of the following is not a provision of the Sarbanes-Oxley Act?
ANSWER
The Sarbanes-Oxley Act allows accountants from offering a broad range of consulting
services to publicly traded companies that they audit.
Question 7
The following are all government agencies except
ANSWER
American Institute of Certified Public Accountants (AICPA).
Question 8
The following are all characteristics of a sole proprietorship except:
ANSWER
2
, A sole proprietorship is legally separate from its owner.
Question 9
The financial statements submitted by a corporation to the SEC include the auditor's report.
The auditor's report:
ANSWER
Confirms that the financial information is prepared in conformity with generally accepted
accounting principles.
Question 10
The group of accounting educators who perform research to determine the possible effects
on financial reporting and the economy and then offer their opinions about proposed FASB
statements is the
ANSWER
American Accounting Association (AAA).
Question 11
When J. Simmons, the owner, invests in her business, the transaction would be entered on
the
ANSWER
Right side of the J. Simmons, Capital T account.
Question 12
Modern products paid cash to a creditor. To record this transaction, the accountant would
3
The review of financial statements to assess their fairness and adherence to GAAP is
ANSWER
Auditing
Question 2
An independent accountant who performs financial audits is a
ANSWER
Certified Public Accountant (CPA)
Question 3
To become a CPA, an individual
ANSWER
Must have a certain number of college credits in accounting courses.
Pass the Uniform CPA Examination.
Fulfill the experience requirements of the state of practice.
Question 4
Which of the following is not a service typically provided by a public accounting firms?
1
,ANSWER
Investing services
Question 5
The entity that has final authority over the financial reporting of publicly owned
corporations is the
ANSWER
Securities and Exchange Commission (SEC).
Question 6
Which of the following is not a provision of the Sarbanes-Oxley Act?
ANSWER
The Sarbanes-Oxley Act allows accountants from offering a broad range of consulting
services to publicly traded companies that they audit.
Question 7
The following are all government agencies except
ANSWER
American Institute of Certified Public Accountants (AICPA).
Question 8
The following are all characteristics of a sole proprietorship except:
ANSWER
2
, A sole proprietorship is legally separate from its owner.
Question 9
The financial statements submitted by a corporation to the SEC include the auditor's report.
The auditor's report:
ANSWER
Confirms that the financial information is prepared in conformity with generally accepted
accounting principles.
Question 10
The group of accounting educators who perform research to determine the possible effects
on financial reporting and the economy and then offer their opinions about proposed FASB
statements is the
ANSWER
American Accounting Association (AAA).
Question 11
When J. Simmons, the owner, invests in her business, the transaction would be entered on
the
ANSWER
Right side of the J. Simmons, Capital T account.
Question 12
Modern products paid cash to a creditor. To record this transaction, the accountant would
3
