Practice Exam #1 Multiple Choice
Questions AND ANSWERS GRADE A+
100% SOLUTIONS
1) Which of the following statements is true?
a. Sarbanes-Oxley provisions included increased personal
accountability of the CFO and CEO of public companies.
b. The requirement of public companies to attest to the effectiveness
of their internal controls was the least controversial provision of
Sarbanes-Oxley.
c. The stock market crash of 1929 led to the creation of the PCAOB.
d. The provisions of Sarbanes-Oxley can be seen within changes that
were required of public companies' financial statements, such as in
the presentation of the balance sheet and income statement.
a. Sarbanes-Oxley provisions included increased personal
accountability of the CFO and CEO of public companies.
d. The provisions of Sarbanes-Oxley can be seen within changes that
were required of public companies' financial statements, such as in
the presentation of the balance sheet and income statement.
2) Which of the following statements is false?
a. All members of the FASB are fully compensated, serve full time,
and are independent of any companies or other institutions.
b. An organization that has not published US accounting standards is
the Securities and Exchange Commission.
c. The current state of the two major sets of accounting standards,
US GAAP and IFRS, is referred to as convergence, which means that a
strict timeline has been finalized for US companies to switch over to
IFRS in 2015.
d. The funding of the IASB is voluntary whereas the funding of the
FASB for certain US companies is mandatory.
c. The current state of the two major sets of accounting standards,
US GAAP and IFRS, is referred to as convergence, which means that a
strict timeline has been finalized for US companies to switch over to
IFRS in 2015.
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3) The FASB Podcast discussed in class demonstrated which of the
following related to setting accounting standards?
i. The FASB's Due Process system in action (illustrating a current
Exposure Draft)
ii. Coordination between the FASB and the IASB
iii. FASB interaction with and request for feedback from the public
iv. Confirmation of a new, finalized GAAP accounting standard related
to lease accounting
a. i. only
b. ii. and iv.
c. i., ii., and iii.
d. i., ii., iii., and iv.
c. i., ii., and iii.
4) The existence of two sets of accounting standards in today's
globally competitive markets a negative implication on which
conceptual framework quality?
a. Consistency
b. Verifiability
c. Materiality
d. Comparability
d. Comparability
5) Which of the following accounting assumption or principle
justifies inventory not being expensed until revenue has been earned?
a. Going Concern
b. Relevance
c. Expense recognition
d. Economic Entity
c. Expense Recognition
6) ABC, a large, publicly-traded company, decides to expense the cost
of copy paper when the paper is acquired. This decision could be
justified by:
Questions AND ANSWERS GRADE A+
100% SOLUTIONS
1) Which of the following statements is true?
a. Sarbanes-Oxley provisions included increased personal
accountability of the CFO and CEO of public companies.
b. The requirement of public companies to attest to the effectiveness
of their internal controls was the least controversial provision of
Sarbanes-Oxley.
c. The stock market crash of 1929 led to the creation of the PCAOB.
d. The provisions of Sarbanes-Oxley can be seen within changes that
were required of public companies' financial statements, such as in
the presentation of the balance sheet and income statement.
a. Sarbanes-Oxley provisions included increased personal
accountability of the CFO and CEO of public companies.
d. The provisions of Sarbanes-Oxley can be seen within changes that
were required of public companies' financial statements, such as in
the presentation of the balance sheet and income statement.
2) Which of the following statements is false?
a. All members of the FASB are fully compensated, serve full time,
and are independent of any companies or other institutions.
b. An organization that has not published US accounting standards is
the Securities and Exchange Commission.
c. The current state of the two major sets of accounting standards,
US GAAP and IFRS, is referred to as convergence, which means that a
strict timeline has been finalized for US companies to switch over to
IFRS in 2015.
d. The funding of the IASB is voluntary whereas the funding of the
FASB for certain US companies is mandatory.
c. The current state of the two major sets of accounting standards,
US GAAP and IFRS, is referred to as convergence, which means that a
strict timeline has been finalized for US companies to switch over to
IFRS in 2015.
Previous
Play
, Next
Rewind 10 seconds
Move forward 10 seconds
Unmute
0:00
/
0:15
Full screen
Brainpower
Read More
3) The FASB Podcast discussed in class demonstrated which of the
following related to setting accounting standards?
i. The FASB's Due Process system in action (illustrating a current
Exposure Draft)
ii. Coordination between the FASB and the IASB
iii. FASB interaction with and request for feedback from the public
iv. Confirmation of a new, finalized GAAP accounting standard related
to lease accounting
a. i. only
b. ii. and iv.
c. i., ii., and iii.
d. i., ii., iii., and iv.
c. i., ii., and iii.
4) The existence of two sets of accounting standards in today's
globally competitive markets a negative implication on which
conceptual framework quality?
a. Consistency
b. Verifiability
c. Materiality
d. Comparability
d. Comparability
5) Which of the following accounting assumption or principle
justifies inventory not being expensed until revenue has been earned?
a. Going Concern
b. Relevance
c. Expense recognition
d. Economic Entity
c. Expense Recognition
6) ABC, a large, publicly-traded company, decides to expense the cost
of copy paper when the paper is acquired. This decision could be
justified by:
