Kaplan University ACC499 Auditing Midterm Project/Kaplan University ACC499 Auditing Midterm Project

Question 

1. Question : An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

Student Answer: proprietorship.

corporation.

partnership.

governmental unit.

2. Question : When a product is sold, this cost is often called

Student Answer: cost of goods sold.

revenue.

products.

retained earnings.

3. Question : Which of the following are business stakeholders?

Student Answer: Stockholders

Suppliers

Customers

All of these

4. Question : The role of accounting in business is best defined as

Student Answer: an information system that provides reports to stakeholders about the economic activities and condition of a business.
a method of forecasting the future profitability of a company.

the policies, procedures, and strategies used in a business.

transaction analysis.

5. Question : The following are examples of internal stakeholders EXCEPT:

Student Answer: managers.

creditors.

employees.

All of these are internal stakeholders.