WITH QUESTIONS AND ANSWERS
WRITTEN CORRECTLY
Effect of Sarbanes-Oxley Act of 2002 - correct answer.💖💖💖💖✔<<<<<It increased corporate
responsibility.
Using corporate credit card for personal expenses - correct answer.💖💖💖💖✔<<<<<Fraud
Purpose of financial accounting - correct answer.💖💖💖💖✔<<<<<Provides historical financial data
in standardized reports for external stakeholders
Feature of managerial accounting reports - correct answer.💖💖💖💖✔<<<<<Tailored to meet
internal decision-makers' needs
Statement describing managerial accounting reports - correct answer.💖💖💖💖✔<<<<<Prepared
for internal decision-making needs of management
SEC role in accounting standards - correct answer.💖💖💖💖✔<<<<<Enforces financial reporting
rules established by the FASB
Certification to offer auditing/tax services - correct answer.💖💖💖💖✔<<<<<CPA
Who oversees and maintains internal controls - correct answer.💖💖💖💖✔<<<<<Management
, Interpretation of net income - correct answer.💖💖💖💖✔<<<<<Revenues are greater than
expenses
Limitation of accrual accounting - correct answer.💖💖💖💖✔<<<<<May not reflect actual cash
flow
Effect of favorable volume variance - correct answer.💖💖💖💖✔<<<<<Increases revenue and cost
of goods sold
Category for wages of store employees - correct answer.💖💖💖💖✔<<<<<Cost of goods sold
Which statement tracks actual cash movement - correct answer.💖💖💖💖✔<<<<<Statement of
cash flows
How to report flea market finds on balance sheet - correct answer.💖💖💖💖✔<<<<<Assets
Trend shown by comparative income statements - correct answer.💖💖💖💖✔<<<<<Changes in
profitability over time
Why is net income lower than revenue - correct answer.💖💖💖💖✔<<<<<Expenses reduce total
amount earned
Why positive net income but low cash - correct answer.💖💖💖💖✔<<<<<Non-cash expenses &
accrual accounting impact cash flow
Limitation of the balance sheet - correct answer.💖💖💖💖✔<<<<<Does not include future
performance