Deck 1: Introduction to Accounting

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

A corporation is usually managed by

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

Answer 3

B

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

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 12

Accountants design accounting information systems and analyze and interpret information.

Question 13

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 14

Stockholders may have very little influence on business decisions.

Question 15

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 16

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 17

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

Question 18

A CMA is a Certified Marketing Auditor.

Question 19

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 20

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

Question 21

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

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

Question 22

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 23

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
A type of ownership structure in which there are many owners who usually employ professional managers.

Question 24

Public accountants do NOT offer which of the following services?

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

Question 25

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Reviewing and testing to be certain that proper accounting policies and practices have been followed.

Question 26

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
The rules that businesses must follow when preparing financial statements.

Question 27

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 28

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
The process in which accountants help managers develop a financial plan.

Question 29

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Includes preparing various reports and financial statements and analyzing operating, investing, and financing decisions.

Question 30

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 31

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
A business that buys a product from another business to sell to customers. ​

Question 32

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
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.

Question 33

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Determining the cost of producing specific products or providing services and analyzing for cost effectiveness.

Question 34

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Sorting and grouping similar items together rather than merely keeping a simple, diary-like record of numerous events.

Question 35

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 36

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Looking at events that have taken place and thinking about how they affect the business.

Question 37

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Deciding the meaning and importance of the information in various reports.

Question 38

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Specializes in cash, payroll, accounts receivable, accounts payable, inventory, or purchases.

Question 39

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

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

Question 40

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 41

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
A system of gathering financial information about a business and reporting this information to users.

Question 42

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Focusing on tax planning, preparing tax returns, and dealing with the Internal Revenue Service and other governmental agencies.

Question 43

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Bringing various items of information together to determine a result.

Question 44

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
A business that provides a service.

Question 45

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Generally supervises the work of accounting clerks, helps with daily accounting work, and summarizes accounting information.

Question 46

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
A business that makes products to sell.

Question 47

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
A type of ownership structure in which more than one person owns the business.

Question 48

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Entering financial information about events affecting the company into the accounting system.

Question 49

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
Telling the results of the financial information.

Question 50

Match the terms with the definitions.a.accountant
b.accounting
c.accounting clerk
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
A type of ownership structure in which one person owns the business.