BUS 101 Unit 7 Study Guide Questions and Correct Answers
2 views 0 purchase
Course
NU1426
Institution
NU1426
BUS 101 - Unit 7 Study Guide Questions and Correct Answers
Accounting is the process of collecting, recording, classifying, summarizing, reporting, and analyzing the financial condition of an organization.
An accounting system should generate both internal and external reports.
Administrative ac...
BUS 101 - Unit 7 Study Guide Questions and
Correct Answers
1). Accounting is the process of collecting, recording, classifying, summarizing, reporting, and
analyzing the financial condition of an organization.
Ans: True
2). An accounting system should generate both internal and external reports.
Ans: True
3). Administrative accounting is the term given to the internal workings of the company, such
as budgets, sales reports, and analyses of how well marketing strategies are working.
Ans: False
4). Independent accountants who serve organizations and individuals on a fee basis are called
public accountants.
Ans: True
5). The sarbanes-oxley act redefines the public corporation-auditor relationship and restricts
the types of services auditors can provide to clients.
Ans: True
6). The usual expression of the accounting equation is assets = liabilities + owners' equity.
Ans: True
7). Another term for net worth is working capital.
Ans: False
8). An accounting journal is a chronological list of transactions, each assigned to a particular
account.
PaperStoc.com Page 1 of 6
, Ans: True
9). The five-step process that takes a transaction from being mere raw financial data to its
being summarized in the financial statements is called the accounting cycle.
Ans: True
10). The balance sheet summarizes a firm's financial position over a period of time, for instance
3 months or a year.
Ans: False
11). Accounting involves the _____ of the financial activities for firms.
Ans: summarizing
12). Accounting provides a framework for looking at:
Ans: all of the above
13). Managerial accounting provides all of the following financial information except:
Ans: income statements
14). Managerial accounting provides information that would probably be most beneficial to:
Ans: a middle manager of the company
15). _____ deals with reporting to outsiders. _____ accounting deals with the internal operations
of the firm.
16). To ensure accuracy and consistency in the way financial information is reported,
accountants follow rules known as:
Ans: generally accepted accounting principles
17). The financial accounting standards board (fasb) is a:
PaperStoc.com Page 2 of 6
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Academik001. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
