Which of the following kinds of companies would use a 990 tax form? Sole proprietorship LLC Non-profit LLP CONCEPT Businesses and Organizations? 2 Greg is an employee who records and organ

  

Which of the following kinds of companies would use a 990 tax form?

Sole proprietorship

LLC

Non-profit

LLP

CONCEPT

Businesses and Organizations 

2

Greg is an employee who records and organizes a company’s transactions.
 

What is his role?

Accountant

Auditor

Controller

Bookkeeper

CONCEPT

Accounting in Practice 

3

Because Mike is only accountable for the $20,000 he invested in his friend Matt's company, the two have created which of the following business types?

Limited Liability Partnership

Dual Proprietor Structure

Limited Liability Company

Private Corporation

CONCEPT

Businesses and Organizations 

4

Instances of fraud and misconduct caused the government to implement which piece of legislation?

International Financial Reporting Standards

General Accepted Accounting Principles

Sarbanes-Oxley Act

Miller-Townsend Act

CONCEPT

Origins and Ethics 

5

Which of the following is responsible for the creation and governance of accounting standards in the United States?

Financial Standards Accounting Board (FASB)

Securities and Exchange Commission (SEC)

Sarbanes-Oxley Act

Generally Accepted Accounting Principles (GAAP)

CONCEPT

Governance 

6

Which of the following is NOT true of a natural balance?

Each account group has a natural balance.

An account increase occurs on the opposite side of the account's natural balance.

Each account is associated with only one account group.

Each individual account has a natural balance.

CONCEPT

Natural Balance 

7

Transferring $12,000 in revenue and $8,000 in expenses into equity would be performed during which phase of the accounting cycle?

Close

Journalize

Report

Adjust

CONCEPT

Accounting Cycle Summary 

8

In early December, the Snowland Resort was paid $1,600 by a company to host its holiday party that month.

In addition to receiving the cash, the $1,600 is considered which of the following?

Revenue

Profit

Expense

Equity

CONCEPT

Account Groups 

9

Brian discussing the financial position of his company with Mike, who is interested in acquiring Brian's company, is an example of which of the following?

Financial accounting

Managerial accounting

Investment accounting

External accounting

CONCEPT

Accounting in Practice 

10

Which image below correctly shows a general ledger?

• Second option is correct

CONCEPT

Posting to the General Ledger 

11

The bookkeeper for Dr. Mark Scholz, DVM, informed the veterinarian that the business' revenue for the day was $18,920.
 

Which statement below best describes how the bookkeeper would record this? 

$18,920 would be recorded on the credit side of the cash account.

$18,920 would be recorded on the debit side of the owner's equity account.

$18,920 would be recorded on the debit side of the purchases account.

$18,920 would be recorded on the credit side of the revenue account.

CONCEPT

Debit and Credit 

12

Which of the following is NOT a permanent account?

Equity

Revenue

Liabilities

Assets

CONCEPT

Account Groups 

13

Which of the following is a responsibility of the FASB?

Overseeing publicly-traded companies

Developing and controlling the U.S. GAAP.

Investigating the use of public funds

Developing rules for security laws

CONCEPT

Governance 

14

The ____________ provides a numerical label for each account, so that activity can easily be tracked for a given account.

Book-Entry

Accounting Model

Double-Entry Accounting

Chart of Accounts

CONCEPT

General Journal and General Ledger 

15

Which illustration below correctly shows Jen opening her frozen yogurt store with a monetary investment of $5,000?

• Second option is correct

CONCEPT

Journal Entries 

16

What is the name of the accounting system documented in the 15th century by Luca Pacioli?

Managerial

Monetary unit

Double-entry

Cost

CONCEPT

Origins and Ethics 

17

Which of the following is NOT a good use of a T-account?

Analyzing a complicated transaction, prior to recording the event in the general journal

Prior to recording an entry, to see the effect of the debits and credits on each account

To make sure the debits and credits in each transaction are equal

Transferring final balances of accounts to the company's financial records