Accounting Ch 1 & 2

All businesses need accounting services.

• True

• False

The YMCA is an example of a for-profit organization

• True

• False

A CPA is a person who has passed a national test and met specified experience and educational standards to become "certified" to practice accounting.

• True

• False

General accounting rules and procedures differ from business to business

• True

• False

The corporation is the easiest form of business to organize.

• True

• False

Service businesses are not intended to operate at a profit.

• True

• False

GAAP is a set of accepted rules that all accountants use to prepare financial reports

• True

• False

Operates to earn money for its owners

• for-profit business

• public accounting

• not-for-profit

• free enterprise system

operates to support a cause or an interest.

• for-profit business

• public accounting

• not-for-profit

• free enterprise system

summarize information about the financial status of a business

• management accounting

• financial accounting

• accounting system

• financial reports