College Accounting John Price 15th Edition- Test Bank

Chapter 01 Accounting: The Language of Business MULTIPLE CHOICE QUESTIONS 1) The purpose of accounting is to provide financial information about an economic or social entity. A) True B) False Answer: A Explanation: Diff: 1 Topic: What is Accounting Learning Objective: 01-01 Define accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 2) An accounting system is designed to accumulate and classify data about a company's financial activities and summarize them in the general journal. A) True B) False Answer: B Explanation: Diff: 1 Topic: What is Accounting; Defining Accounting Terms Learning Objective: 01-01 Define accounting.; 01-06 Define the accounting terms new to this chapter. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 3) In a sole proprietorship, the owner is NOT responsible for the debts of the business if the company is unable to pay. A) True B) False Answer: B Explanation: Diff: 1 Topic: Business and Accounting; Defining Accounting Terms Learning Objective: 01-06 Define the accounting terms new to this chapter.; 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: FN Decision Making; BB Legal 1 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4) Laws passed by Congress in 1933 and 1934 gave the Securities and Exchange Commission (SEC) final say on matters of financial reporting by publicly owned corporations. A) True B) False Answer: A Explanation: Diff: 2 Topic: What is Accounting Learning Objective: 01-03 Identify the users of financial information. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 5) Currently, generally accepted accounting principles are developed by the American Institute of Certified Public Accountants (AICPA). A) True B) False Answer: B Explanation: Diff: 1 Topic: Business and Accounting Learning Objective: 01-05 Describe the process used to develop generally accepted accounting principles. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 6) The Securities and Exchange Commission (SEC) requires that publicly owned corporations submit financial statements to it at least one time each year. A) True B) False Answer: A Explanation: Diff: 1 Topic: Business and Accounting Learning Objective: 01-05 Describe the process used to develop generally accepted accounting principles. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 2 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 7) Public accounting firms provide three major types of services: auditing, tax accounting, and management advisory services. A) True B) False Answer: A Explanation: Diff: 1 Topic: What is Accounting Learning Objective: 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 8) The financial statements and the auditor's report must be made available to stockholders of publicly owned corporations. A) True B) False Answer: A Explanation: Diff: 2 Topic: Business and Accounting Learning Objective: 01-05 Describe the process used to develop generally accepted accounting principles. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; BB Legal; FN Reporting 9) Anyone can invest in a closely held corporation. A) True B) False Answer: B Explanation: Diff: 2 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 3 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 10) Managerial Accounting is any activity associated with the preparation of tax returns and the audit of those returns. A) True B) False Answer: B Explanation: Diff: 2 Topic: What is Accounting Learning Objective: 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 11) The separate entity assumption applies only to the corporate form of business. A) True B) False Answer: B Explanation: Diff: 1 Topic: Business and Accounting; Defining Accounting Terms Learning Objective: 01-06 Define the accounting terms new to this chapter.; 01-04 Compare and contrast the three types of business entities. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 12) As the first step in the development of generally accepted accounting principles, the FASB writes a discussion memorandum, which explains the topic being considered. A) True B) False Answer: A Explanation: Diff: 2 Topic: Business and Accounting Learning Objective: 01-05 Describe the process used to develop generally accepted accounting principles. Bloom's: Remember AACSB: Analytical Thinking AICPA: FN Decision Making; BB Legal 4 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 13) Public accountants work on the staff of federal, state, or local governmental units. A) True B) False Answer: B Explanation: Diff: 1 Topic: What is Accounting; Defining Accounting Terms Learning Objective: 01-06 Define the accounting terms new to this chapter.; 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 14) The SEC uses financial information to determine a company's tax base. A) True B) False Answer: B Explanation: Diff: 2 Topic: What is Accounting Learning Objective: 01-03 Identify the users of financial information. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal; FN Measurement 15) When a partner leaves the company, the partnership is dissolved and a new partnership may be formed with the remaining partners. A) True B) False Answer: A Explanation: Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 5 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 16) Accounting is defined as the process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties. A) True B) False Answer: A Explanation: Diff: 2 Topic: What is Accounting Learning Objective: 01-01 Define accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 17) The owners and managers of a business are the only users of the financial information. A) True B) False Answer: B Explanation: Diff: 1 Topic: What is Accounting Learning Objective: 01-03 Identify the users of financial information. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; FN Reporting 18) Most owners and managers rely heavily on the accountant's judgment and knowledge when making financial decisions. A) True B) False Answer: A Explanation: Diff: 1 Topic: What is Accounting Learning Objective: 01-01 Define accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 6 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 19) Accountants provide financial information to various parties so they can make business decisions. A) True B) False Answer: A Explanation: Diff: 1 Topic: What is Accounting Learning Objective: 01-01 Define accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 20) When a business is organized as a sole proprietorship, the owner should combine his/her personal financial information with the business financial information. A) True B) False Answer: B Explanation: Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; FN Reporting 21) A business partnership consists of two or more owners. A) True B) False Answer: A Explanation: Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 7 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 22) Which of the following is NOT an area in which accountants usually practice? A) Managerial (Private) Accounting C) Industrial Accounting Accounting Answer: C Explanation: A) B) C) D) B) Public Accounting D) Governmental Diff: 1 Topic: What is Accounting Learning Objective: 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 23) Managerial accountants usually do which of the following? A) prepare and audit tax returns B) investigate companies for possible violations of law C) prepare internal reports for management D) audit financial statements Answer: C Explanation: A) B) C) D) Diff: 1 Topic: What is Accounting Learning Objective: 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 8 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 24) Identify which of the following are considered OUTSIDE users of financial accounting information. A) managers Answer: B Explanation: B) banks C) employees D) owners A) B) C) D) Diff: 1 Topic: What is Accounting Learning Objective: 01-03 Identify the users of financial information. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 25) An example of an economic entity is A) a business. Answer: A Explanation: A) B) C) D) B) a town. C) a church. D) a politician. Diff: 2 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Critical Thinking 26) The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the A) sole proprietorship. C) corporation. Answer: C Explanation: A) B) C) D) B) nonprofit organization. D) partnership. Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 9 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 27) Which of the following is NOT a type of information communicated by the financial statements? A) whether or not the business is profitable B) how long the business has been in operation C) how much the business owes others D) what types of assets business owns Answer: B Explanation: A) B) C) D) Diff: 1 Topic: What is Accounting Learning Objective: 01-01 Define accounting. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; FN Reporting 28) Which of the following is NOT a type of information communicated by the financial statements? A) the types of products and services the business provides B) the equity, or value, of the business C) the amount of revenue earned by the business D) the amount spent on costs (expenses) of the business Answer: A Explanation: A) B) C) D) Diff: 1 Topic: What is Accounting Learning Objective: 01-01 Define accounting. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; FN Reporting 10 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 29) The Financial Accounting Standards Board is responsible for A) auditing financial statements. B) making recommendations to the Securities and Exchange Commission. C) developing generally accepted accounting principles. D) establishing accounting systems for businesses. Answer: C Explanation: A) B) C) D) Diff: 1 Topic: Business and Accounting Learning Objective: 01-05 Describe the process used to develop generally accepted accounting principles. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 30) The government agency that has final authority over the financial reporting of publicly owned corporations is the A) Financial Accounting Standards Board. C) Federal Trade Commission. Commission. Answer: D Explanation: A) B) C) D) B) Internal Revenue Service. D) Securities and Exchange Diff: 1 Topic: Business and Accounting Learning Objective: 01-05 Describe the process used to develop generally accepted accounting principles. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 11 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 31) The financial activities of a business and the financial activities of the owners should be A) combined only if the owner wants them to be. B) kept totally and completely separate. C) combined in the firm's accounting records. D) reported in different parts of the firm's accounting records. Answer: B Explanation: A) B) C) D) Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Risk Analysis 32) All financial statements submitted to the SEC by publicly owned corporations must include an auditor's report prepared by A) an internal auditor. B) an independent certified public accountant. C) the firm's managerial accountant. D) anyone in the accounting department. Answer: B Explanation: A) B) C) D) Diff: 1 Topic: Business and Accounting Learning Objective: 01-05 Describe the process used to develop generally accepted accounting principles. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 12 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 33) The area of accounting that involves the preparation of internal reports for a firm's executives and the analysis of the data in these reports to aid in decision making is known as A) managerial accounting. C) financial accounting. Answer: A Explanation: A) B) C) D) B) cost accounting. D) auditing. Diff: 1 Topic: What is Accounting Learning Objective: 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 34) The corporations whose stock can be bought and sold on stock exchanges and in over-the-counter markets are referred to as A) publicly owned corporations. C) closely held corporations. corporations. Answer: A Explanation: A) B) C) D) B) sole proprietorships. D) privately owned Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 13 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 35) The group of accounting educators who offer their opinions about proposed FASB statements, after research has been done to determine the possible effects on financial reporting and the economy, is A) the FCC. Answer: C Explanation: B) the SEC. C) the AAA. D) the AICPA. A) partnership. C) corporation. proprietorship. Answer: C Explanation: A) B) C) D) B) nonprofit organization. D) sole A) B) C) D) Diff: 2 Topic: Business and Accounting Learning Objective: 01-05 Describe the process used to develop generally accepted accounting principles. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 36) Owners are not personally responsible for the debts of the business if the form of business organization is a Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 37) Identify the form of business that is considered a separate legal entity. A) a sole proprietorship C) a limited liability partnership corporation Answer: D Explanation: A) B) C) D) B) a partnership D) a Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 14 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 38) Identify the advantages of forming a business as an S Corporation. A) owner is personally responsible for debts of the business and earnings are reported directly on owner's personal tax return B) treated as a separate legal entity and owners avoid double taxation C) owners have limited liability and corporation's earnings are tax free D) owners avoid double taxation and owners have limited liability Answer: D Explanation: A) B) C) D) Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 39) A company issues periodic reports called A) audits. C) tax returns. Answer: B Explanation: A) B) C) D) Diff: 1 Topic: What is Accounting Learning Objective: 01-01 Define accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; FN Reporting B) financial statements. D) summaries. 15 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 40) Which of the following is NOT part of the process of accounting for financial information? A) classifying Answer: C Explanation: A) B) C) D) B) communicating C) identifying D) recording Diff: 2 Topic: What is Accounting; Defining Accounting Terms Learning Objective: 01-01 Define accounting.; 01-06 Define the accounting terms new to this chapter. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 41) Which of the following is a true statement in regards to the International Accounting Standards Board? A) The IASB develops all accounting principles to be used in the United States B) The IASB has the authority to audit financial statements of all US corporations C) The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries D) The IASB was created by the American Accounting Association Answer: C Explanation: A) B) C) D) Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Global 16 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 42) Which of the following is NOT a service of public accounting firms? A) management advisory services C) investment services Answer: C Explanation: A) B) C) D) B) tax accounting D) auditing Diff: 1 Topic: What is Accounting Learning Objective: 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 43) Tax accounting involves tax compliance and A) tax planning. C) tax evaluation. Answer: A Explanation: A) B) C) D) B) tax configuration. D) tax obfuscation. Diff: 1 Topic: What is Accounting Learning Objective: 01-02 Identify and discuss career opportunities in accounting. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 44) Tax planning includes A) suggesting actions to reduce tax liability. C) correcting tax returns. returns. Answer: A Explanation: A) B) C) D) B) preparing tax returns. D) auditing tax Diff: 2 Topic: What is Accounting Learning Objective: 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 17 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 45) Managerial accounting is A) government accounting. C) tax accounting. accounting. Answer: B Explanation: A) B) C) D) B) private accounting. D) public Diff: 1 Topic: What is Accounting Learning Objective: 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 46) The following are all government agencies except the A) IRS. AICPA. Answer: D Explanation: A) B) C) D) B) FBI. C) SEC. D) Diff: 1 Topic: What is Accounting Learning Objective: 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 47) An act passed in response to the wave of corporate accounting scandals is the A) Sorbine-Oxide Act. C) Saxon-Ordanly Act. Act. Answer: D Explanation: A) B) C) D) Diff: 2 Topic: What is Accounting Learning Objective: 01-03 Identify the users of financial information. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 18 B) Sardonic-Oxone Act. D) Sarbanes-Oxley Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 48) Owners and managers need financial information in order to A) grant loans. credit. Answer: C Explanation: A) B) C) D) B) collect taxes. C) make decisions. D) issue Diff: 1 Topic: What is Accounting Learning Objective: 01-03 Identify the users of financial information. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 49) The Sarbanes-Oxley Act includes rules on A) auditor rotation. C) auditor retention. reliability. Answer: A Explanation: A) B) C) D) Diff: 2 Topic: What is Accounting Learning Objective: 01-03 Identify the users of financial information. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 50) A form of the partnerships business entity is B) auditor reporting. D) auditor A) DBA. Answer: C Explanation: B) LLC. C) LLP. D) INP. A) B) C) D) Diff: 2 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 19 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 51) Which statement below represents what GAAP stands for? A) Generally Approved Accounting Practices. B) General Accepted Accounting Principles. C) Generally Anticipated Accounting Principles. D) Generally Accepted Accounting Policies. Answer: B Explanation: A) B) C) D) Diff: 1 Topic: Business and Accounting Learning Objective: 01-04 Compare and contrast the three types of business entities. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 52) The review of financial statements to assess their fairness and adherence to GAAP is A) compliance. accounting. Answer: C Explanation: A) B) C) D) B) preparation. C) auditing. D) Diff: 1 Topic: What is Accounting; Defining Accounting Terms Learning Objective: 01-06 Define the accounting terms new to this chapter.; 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 20 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 53) Management advisory services are designed to help A) employers. C) clients. Answer: C Explanation: A) B) C) D) B) government agencies. D) creditors. Diff: 1 Topic: What is Accounting; Defining Accounting Terms Learning Objective: 01-06 Define the accounting terms new to this chapter.; 01-02 Identify and discuss career opportunities in accounting. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making 54) An independent accountant who is licensed by the state and provides accounting services to the public for a fee is a A) CMA. Answer: D Explanation: B) CIA. C) CFE. D) CPA. A) B) C) D) Diff: 1 Topic: What is Accounting; Defining Accounting Terms Learning Objective: 01-06 Define the accounting terms new to this chapter.; 01-02 Identify and discuss career opportunities in accounting. Bloom's: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal 21 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 55) The Financial Accounting Standards Board has the authority to develop generally accepted accounting principles. Choose the option below that contains the steps used by the FASB in developing GAAP. A) steps include: publishing a notice in the newspaper, seeking public opinion, and issuing a statement of principle. B) steps include: issuing a discussion memorandum, filing a legal draft, and notifying the SEC. C) steps include: issuing a discussion memorandum, issuing an exposure draft, and issuing a statement of principle. D) steps include: filing a complaint with the SEC, issuing an internal report, and issuing a statement of principle. Answer: C Explanation: A) B) C) D) Diff: 2 Topic: Business and Accounting Learning Objective: 01-05 Describe the process used to develop generally accepted accounting principles. Bloom's: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Decision Making; BB Legal SHORT ANSWER QUESTIONS 56) Accounting is often referred to as the language of ________. Answer: business Explanation: Diff: 1 Topic: What is Accounting? Learning Objective: 01-01 Define accounting. Bloom's: Remember AACSB: Analytic AICPA: BB Industry; FN Decision Making 57) The results of the accounting process are summarized in periodic reports called ________. Answer: financial statements Explanation: Diff: 1 Topic: What is Accounting? Learning Objective: 01-01 Define accounting. Bloom's: Remember AACSB: Analytic AICPA: BB Industry; FN Reporting college accounting - test bank, college accounting test questions, college accounting exam, basic accounting test bank pdf, college accounting practice problems, accounting test bank, accounting college questions, entry level accounting test questions,