MANAGERIAL ACCOUNTING FOR DECISION
MAKERS HANLON PRACTICE QUESTIONS AND
DETAILED SOLUTIONS
◉ Financial Accounting Standards Board (FASB).
Answer: a private body established and supported by the joint
efforts of the U.S. business community, financial analysts, and
practicing accountants
◉ The Securities and Exchange Commission (SEC).
Answer: the organization that regulates U.S. stock exchanges and
seeks to create a fair information environment in which investors
can buy and sell stocks without fear that companies are hiding or
manipulating financial data
◉ American Institute of Certified Public Accountants (AICPA).
Answer: the professional organization of certified public
accountants (CPAs) in the United States
◉ Public Company Accounting Oversight Board (PCAOB).
Answer: the organization that inspects the audit practices of
registered audit firms and has statutory authority to investigate
, questionable audit practices and to impose sanctions such as
barring an audit firm from auditing SEC-registered companies
◉ Internal Revenue Service (IRS).
Answer: Gov't agency that establishes rules to define exactly when
income should be taxed. It has no role in setting financial accounting
rules; and a company's financial statements are not used in
determining how much tax the company must pay
◉ The International Accounting Standards Board (IASB).
Answer: Organization that was formed to develop a common set of
worldwide accounting standards. Its standards are increasingly
accepted worldwide, but FASB rules are still the standard in the
United States.
◉ 1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting
scandals.
Answer: Which 3 factors have combined to make right now a time of
significant change in accounting?
◉ Sarbanes-Oxley Act.
MAKERS HANLON PRACTICE QUESTIONS AND
DETAILED SOLUTIONS
◉ Financial Accounting Standards Board (FASB).
Answer: a private body established and supported by the joint
efforts of the U.S. business community, financial analysts, and
practicing accountants
◉ The Securities and Exchange Commission (SEC).
Answer: the organization that regulates U.S. stock exchanges and
seeks to create a fair information environment in which investors
can buy and sell stocks without fear that companies are hiding or
manipulating financial data
◉ American Institute of Certified Public Accountants (AICPA).
Answer: the professional organization of certified public
accountants (CPAs) in the United States
◉ Public Company Accounting Oversight Board (PCAOB).
Answer: the organization that inspects the audit practices of
registered audit firms and has statutory authority to investigate
, questionable audit practices and to impose sanctions such as
barring an audit firm from auditing SEC-registered companies
◉ Internal Revenue Service (IRS).
Answer: Gov't agency that establishes rules to define exactly when
income should be taxed. It has no role in setting financial accounting
rules; and a company's financial statements are not used in
determining how much tax the company must pay
◉ The International Accounting Standards Board (IASB).
Answer: Organization that was formed to develop a common set of
worldwide accounting standards. Its standards are increasingly
accepted worldwide, but FASB rules are still the standard in the
United States.
◉ 1. Rapid Advancements in the IT field
2. the international integration of worldwide business
3. Increased scrutiny associated with large corporate accounting
scandals.
Answer: Which 3 factors have combined to make right now a time of
significant change in accounting?
◉ Sarbanes-Oxley Act.
