ACCOUNTING EXAM #2 CH.10
1. The most powerful corporate governance legislation to date has been
Answer the Sarbanes-Oxley Act (SOX) of 2002.
2. The independent auditors' report usually
Answer includes an opinion that the financial statements present fairly, in all material respects, financial information
about the company.
3. Management's statement of responsibility
Answer aflrms that management is responsible for assur- ing adherence to internal control policies and procedures
4. Which of the following is not a topic that is likely to be discussed as a significant
accounting policy?
Answer Method of estimating uncollectible accounts receivable.
5. Business segment information is included in the notes to financial statements because
Answer current and potential investors can make more informed judgments about the company.
6. Which is the following descriptions is not one of the "Thirteen Financial Shenanigans"
identified by Schilit and Perler, and listed in Exhibit 10-1
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1. The most powerful corporate governance legislation to date has been
Answer the Sarbanes-Oxley Act (SOX) of 2002.
2. The independent auditors' report usually
Answer includes an opinion that the financial statements present fairly, in all material respects, financial information
about the company.
3. Management's statement of responsibility
Answer aflrms that management is responsible for assur- ing adherence to internal control policies and procedures
4. Which of the following is not a topic that is likely to be discussed as a significant
accounting policy?
Answer Method of estimating uncollectible accounts receivable.
5. Business segment information is included in the notes to financial statements because
Answer current and potential investors can make more informed judgments about the company.
6. Which is the following descriptions is not one of the "Thirteen Financial Shenanigans"
identified by Schilit and Perler, and listed in Exhibit 10-1
1/4
