Accounting I Unit 1 Review

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

• True
• False

A partnership is owned by stockholders or shareholders.

• True
• False

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

• true
• false

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

• true
• false

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

• true
• false

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

• true
• false

Stockholders may have very little influence on business decisions.

• true
• false

A CMA is a Certified Marketing Auditor.

• true
• false

Stockholders own which type of business? a. proprietorship b. partnership with more than ten partners c. corporation d. partnership with only two partners

• a
• b
• c
• d

A business that purchases a product from another business to sell to customers is called a a. service business. b. merchandising business. c. manufacturing business. d. nonprofit business.

• a
• b
• c
• d