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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

The Language of Business

True/False Questions


1	The Securities and Exchange Commission has a great deal of power to dictate accounting methods used by companies whose stock is traded on the stock exchanges.
		A)	True
		B)	False


2	The Securities and Exchange Commission often relies on pronouncements of the Financial Accounting Standards Board.
		A)	True
		B)	False


3	The Canadian Accounting Standards Board is an agency of the federal government
		A)	True
		B)	False


4	Because of the separate entity assumption, the personal financial activities of the owner of a sole proprietorship are combined with the financial affairs of his or her business in the accounting records of the business.
		A)	True
		B)	False


5	All accounting principles are established by law.
		A)	True
		B)	False


6	Because of the differences in the structures of the three types of business entities, certain aspects of their financial affairs are accounted for in different ways.
		A)	True
		B)	False


7	A sole proprietorship is a form of business entity owned by two or more people.
		A)	True
		B)	False


8	There is little difference between a corporation and other forms of business entities.
		A)	True
		B)	False


9	Shares of stock represent ownership in a corporation
		A)	True
		B)	False


10	Employees should have no particular interest in the financial information about the business for which they work.
		A)	True
		B)	False


11	The Canadian Institute of Accountants is a governmental agency.
		A)	True
		B)	False


12	In a large company, the auditing process is completed by bookkeepers.
		A)	True
		B)	False


13	Passing a test called the Uniform CPA Examination is required for one to become a chartered accountant.
		A)	True
		B)	False

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