Business Organization and Financial Data

16. A guiding force behind a managerial decision is called the ___________.

a. operating plan

b. customer satisfaction ratings

c. mission statement

d. shareholders

17. A business venture that is owned by a single individual who personally receives all profits and

assumes all responsibility for the debts and losses is considered what type of business?

a. a proprietorship

b. a partnership

c. a corporation

d. a limited liability company

18. _________ is a set of guidelines that reflect the form and manner in which accounting

information should be presented.

a. GAAP

b. FASB

c. CRSC

d. FSCA

19. Under__________, revenues and their associated expenses are recognized when a sale occurs,

regardless of when cash revenues or expenses really occur.

a. IASC accounting

b. accrual accounting

c. GAAP accounting

d. FASB accounting

20. What should be the financial goal of any firm?

a. maximization of the owners