Question

Match each of the descriptions with the term or phrase it best reflects Description 1. An assessment of whether financial statements follow GAAP 2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues. 3. A group that sets accounting principles in the United States 4. Accounting professionals who provide services to many clients | 5. Principles that determine whether an action is right or wrong.

Answer 1

1.

An assessment of whether financial statements follow GAAP	Audit
Amount a business earns in excess of all expenses and costs associated with its sales and revenues	Net Income
A group that sets accounting principles in the United States	FASB
Accounting professionals who provide services to many clients	Public Accountants
Principles that determine whether an action is right or wrong	Ethics

2.

	Description	Business Organization
a.	Micah and Nancy own Financial Services......	Corporation
b.	Riley and Kay own Speedy Packages.....	Partnership
c.	IBC Services does not have .....	Sole Proprietorship
d.	Trent Company is owned by Trent Malone......	Sole Proprietorship
e.	Ownership of Zander Company is divided into 1,000 shares ...........	Corporation
f.	Physio Products does not pay income taxes....	Sole Proprietorship
g.	AJ Company pays a business income tax.............	Corporation
h.	Jeffy Auto is a separate legal entity...........	S Corporation