Which of the following is not one of the forms of business organization?
Corporation
These are all forms of business organization
Company
Partnership
Sole proprietorship Company
Which statement about users of accounting information is correct?
Creditors are considered int...
ACG 2021 Chapter 1 Review Questions
and Answers
Which of the following is not one of the forms of business organization?
Corporation
These are all forms of business organization
Company
Partnership
Sole proprietorship ✅Company
Which statement about users of accounting information is correct?
Creditors are considered internal users.
Regulatory authorities are considered internal users.
Management is considered an external user.
Labor unions are considered internal users.
Taxing authorities are considered external users. ✅Taxing authorities are considered
external users.
Which of the following is the most appropriate definition of accounting information?
All of these
Electronic collection and organization of vast amounts of financial information
The information system that identifies, records, and communicates the economic
events of an organization to interested users
The interconnected network of subsystems necessary to operate a business
A means of collecting business information ✅The information system that identifies,
records, and communicates the economic events of an organization to interested users
, Which of the following is required ever since the Sarbanes-Oxley Act (SOX) passed into
law in 2002?
Top management must certify the financial statements for their company.
Public companies must prepare audited financial statements.
None of these
Companies that go bankrupt must repay shareholders for lost investments.
All shareholders now have an oversight role of the company's financial activities.
✅Top management must certify the financial statements for their company.
Which of the following is an expense?
Cost of goods sold
Dividends
Accounts receivable
All of these
Wages payable ✅Cost of goods sold
Collecting cash from customers is an example of a cash flow from
investing activities.
financing activities.
delivery activities.
operating activities.
All of these ✅operating activities.
Which of the following is not one of the three primary business activities listed on the
statement of cash flows?
Merchandising activities
Operating activities
Investing activities
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 twishfrancis. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
