Choose one answer.

 

Due to various fraudulent business practices and accounting coverups in the early 2000s, Congress enacted the Sarbanes-Oxley Act of 2002. The act was responsible for establishing a new oversight board for public accountants called the

	a. Generally Accepted Accounting Practices for Public Accountants Board.
	b. Public Company Accounting Oversight Board.
	c. Congressional Accounting Oversight Board.
	d. None are correct.

 

 

Governments have an interest in the economic performance of business because of

	a. tax collections.
	b. community involvement from the business.
	c. business incentives.
	d. all of these.

 

 

Managers are evaluated primarily on the business's

	a. tax collections.
	b. growth.
	c. economic performance.
	d. all of these.

 

 

When a business borrows money, it incurs a(n)

	a. tax.
	b. liability.
	c. receivable.
	d. additional equity.

 

 

When a product is sold, this cost is often called

	a. cost of goods sold.
	b. revenue.
	c. products.
	d. retained earnings.

 

 

A note payable requires payment of the amount borrowed plus

	a. interest.
	b. cash.
	c. accounts payable.
	d. investments.

 

 

The resources a business owns are called

	a. assets.
	b. liabilities.
	c. earnings.
	d. stockholders' equity.

 

	a. Financing
	b. Investing
	c. Operating
	d. All of these

 

The role of accounting in business is best defined as

	a. an information system that provides reports to stakeholders about the economic activities and condition of a business.
	b. a method of forecasting the future profitability of a company.
	c. the policies, procedures, and strategies used in a business.
	d. transaction analysis.