1. Generally accepted accounting principles (GAAP) are designed to provide guidance for?

- financial accounting

-managerial accounting

-tax accounting

-auditing service accounting

2. Which of the following types of businesses require financial information to operate effectively?

-for profit businesses

-governmental entities

-non profit businesses

- all of the above

3.public accountants perform which of the following functions to ensure that financial information provided by a company to investors is in accordance with GAAP?

- prepare a budget

-conduct an audit

-tax return preparation

-none of the above

4.paul savage purchased a restaurant named burger haven from Larry Jones. The purchase would cause the number of reporting entities to?

- increase

- decrease

- remain constant

-the answer can not be determined by the information provided

5. John Hamilton narrowed $500.000 from stone creek bank to open a new restaurant called sauce it up. John transferred $450,000 of the cash he narrowed to the restaurant the first day of the year. How many reporting entities exist in this scenario?

- one reporting entity

-two reporting entities

- three reporting entities

-four reporting entities

6. Is in photo below.

Options are

-A

-B

-C

-D

John Hamilton borrowed $500,000 from Stone Creek Bank to open a new restaurant called Sauce-lt-Up John transferred $450,000 of the cash he borrowed to the Company on the first day of the year. Which of the following appropriately reflects the cash transactions between these reporting entities? n Hamilton Stone A. 58,000 increase $450,0 increase 500,eee decrease B $50e,ee0 increase $45,e80 increase $ 5ee,000 decrease c. $5e0,eee decrease 5ee,e00 increase $see,e00 decrease D. 450,eee increase 5e,eee increase $5ee,000 decrease Multiple Choice Prev 6-7 ,of 71 Hl