For my future CPA

Which of the following processes is considered bookkeeping?

• a. Analyzing

• b. Reporting

• c. Recording

• d. Summarizing

Krishna started a speech therapy center. He also sells professional books on speech development. What is the nature of his business? Support your answer with a reason

• a. manufacturing

• b. service

• c. trading

• d. service and trading

Which of the following is a trading business?

• a. a clinic

• b. a law firm

• c. a pharmacy

• d. a telecommunications company

Which of the following statements is false

• a. A sole proprietor has a limited risk with respect to the amount of resources he invests in his business

• b. A sole proprietorship has only one owner

• c. A sole proprietorship is easy to set up

• d. A sole proprietorship may not be able to obtain loans easily

A business which prepares financial statements every year is following the ___________ concept

• A. accounting entity

• B. periodically

• C. process

• D. objectivity

The ____________ concept assumes that the business has an indefinite economic life.

• A. accounting entity

• B. accounting period

• C. going concern

• D. objectivity

Which of the following processes best defines accounting?

• a. measuring economic activities

• b. communicating results to interested parties

• c. Preventing fraud

• d. both A and B

Which form of business organization is characterized by limited liability?

• a. sole proprietorship

• b. partnership

• c. corporation

• d. relationship

To which area of accounting are generally accepted accounting principles primarily relevant?

• a. managerial Accounting

• b. Financial Accounting

• c. Tax Accounting

• d. Financial Reporting to all Regulatory Agencies

Which of the following is not one of the three types of business activities?

• a. Investing

• b. Financing

• c. Marketing

• d. Operating