WGU D196 PRINCIPLES OF FINANCIAL AND
MANAGERIAL ACCOUNTING: MODULE 1 |PA|PRE-
ASSESSMENT
Correct 16
Incorrect
1 of 16
Term
You read in the newspaper that a local company you are familiar
with has been found guilty in court of publishing financial statements
that are false and misleading to users of those financial statements.
In this situation, what could the American Institute of Certified Public
Accountants (AICPA) do in response to the accountants who were
found guilty of unethical conduct in accounting practices?
A: Implement professional sanctions
B: Report the business to the FASB
,C: Cover up the unethical conduct with flattering news reports
D: Enforce legal punishments
Give this one a try later!
D: The company has not filed its taxes in accordance with the law.
The role of the IRS is to ensure that tax filing complies with financial accounting
standards.
D: Financial reports
Financial reports are used by individuals and organizations that have an
economic interest in the business. They provide information about the financial
performance of a company
C: There is flexibility inherent in the assumptions underlying the preparation of
financial statements.
The flexibility inherent in the assumptions underlying the preparation of financial
statements means that an accountant can intentionally deceive financial
statement users and yet still technically be in compliance with GAAP.
A: Implement professional sanctions
The AICPA can enforce professional sanctions by taking away the CPA
designation from an accountant who has acted unethically.
Don't know?
2 of 16
, Term
Which group uses financial information to evaluate whether a
company will be able to repay a loan?
A: Employees
B: Management
C: Lenders
D: Investors
Give this one a try later!
C: People from a variety of business-related backgrounds
Historically, FASB members have represented a broad business constituency
including auditors, corporate accountants, analysts, and accounting academics.
The FASB is not directly controlled by the SEC, although SEC input is extremely
important to the FASB in its deliberations.
C: Lenders
Lenders are interested in whether or not a company will be able to repay a
loan, so they use financial information to analyze the company's financial
ability to do so.
C: Balance sheet
The balance sheet reports the resources of a company (the assets), the
company's obligations (the liabilities), and the owners' equity, which represents
the difference between what is owned (assets) and what is owed (liabilities).
C: The GASB is a private-sector organization that establishes accounting and
financial reporting standards for U.S. state and local governments.
MANAGERIAL ACCOUNTING: MODULE 1 |PA|PRE-
ASSESSMENT
Correct 16
Incorrect
1 of 16
Term
You read in the newspaper that a local company you are familiar
with has been found guilty in court of publishing financial statements
that are false and misleading to users of those financial statements.
In this situation, what could the American Institute of Certified Public
Accountants (AICPA) do in response to the accountants who were
found guilty of unethical conduct in accounting practices?
A: Implement professional sanctions
B: Report the business to the FASB
,C: Cover up the unethical conduct with flattering news reports
D: Enforce legal punishments
Give this one a try later!
D: The company has not filed its taxes in accordance with the law.
The role of the IRS is to ensure that tax filing complies with financial accounting
standards.
D: Financial reports
Financial reports are used by individuals and organizations that have an
economic interest in the business. They provide information about the financial
performance of a company
C: There is flexibility inherent in the assumptions underlying the preparation of
financial statements.
The flexibility inherent in the assumptions underlying the preparation of financial
statements means that an accountant can intentionally deceive financial
statement users and yet still technically be in compliance with GAAP.
A: Implement professional sanctions
The AICPA can enforce professional sanctions by taking away the CPA
designation from an accountant who has acted unethically.
Don't know?
2 of 16
, Term
Which group uses financial information to evaluate whether a
company will be able to repay a loan?
A: Employees
B: Management
C: Lenders
D: Investors
Give this one a try later!
C: People from a variety of business-related backgrounds
Historically, FASB members have represented a broad business constituency
including auditors, corporate accountants, analysts, and accounting academics.
The FASB is not directly controlled by the SEC, although SEC input is extremely
important to the FASB in its deliberations.
C: Lenders
Lenders are interested in whether or not a company will be able to repay a
loan, so they use financial information to analyze the company's financial
ability to do so.
C: Balance sheet
The balance sheet reports the resources of a company (the assets), the
company's obligations (the liabilities), and the owners' equity, which represents
the difference between what is owned (assets) and what is owed (liabilities).
C: The GASB is a private-sector organization that establishes accounting and
financial reporting standards for U.S. state and local governments.
