D774 - Section 1 with
correct questions and
answers
usr
[COMPANY NAME] [Company address]
, 1. Securities and Exchange Commission (SEC) Answer: Gov organization created as
result of Stock Market Crash of 1929 and the resulting Great Depression
2. Sarbanes-Oxley Act of 2002 Answer: requires corporate execs to implement risk
managment procedures, est and maintain internal controls, requires both mgmt and external
auditors to certify adequacy of company's internal controls
3. Securities Act of 1933 Answer: Ensure investors have financial and other critical information
about securities that are being issued to the public for the first time. Requires companies to disclose
info such as assets, financial health, who board members and sr. execs are
4. Securities Act of 1934 Answer: Created Securities and Exchange Commission and
authorized SEC to govern secondary markets and the trading of corporate securities sold in the
US
5. Sarbanes-Oxley Act of 2002 Answer: Mandate strict reforms to improve financial
disclosures, prevent fraudu- lent financial practices, ensures every company's board of directors has
a financial expert as a board member
6. Dodd-Frank Act Answer: Passed in 2008. Improve financial market stability and curb risky
financial industry activitie (risky mortgages)
7. Financial Accounting Standards Board (FASB) Answer: The primary accounting
standard-setting body in the United States.
8. Generally Accepted Accounting Principles (GAAP) Answer: Authoritative
guidelines that define accounting practice at a particular time in the United States.
9. How did the Industrial Revolution lead to increased importance
of reliable financial statements? Answer: through the creation of a greater need for
investmentn capital
10. What contributed to the need for accounting in Egypt 5,000
years ago? Answer: Taxation
11. External User Answer: Investors, Lenders, Taxing authorities, Regulators who monitor
compliance, the Financial Press, Stock Exchanges, Suppliers, Customers
12. Internal User Answer: Management Team, Purchasers, Internal Decision makers
13. Financial Accounting Answer: The type of accounting that focuses on reporting
information to external users for compliance, performance or other stewardship reasons
14. Managerial Accounting Answer: a type of accounting focused primarily on providing
2/
9
correct questions and
answers
usr
[COMPANY NAME] [Company address]
, 1. Securities and Exchange Commission (SEC) Answer: Gov organization created as
result of Stock Market Crash of 1929 and the resulting Great Depression
2. Sarbanes-Oxley Act of 2002 Answer: requires corporate execs to implement risk
managment procedures, est and maintain internal controls, requires both mgmt and external
auditors to certify adequacy of company's internal controls
3. Securities Act of 1933 Answer: Ensure investors have financial and other critical information
about securities that are being issued to the public for the first time. Requires companies to disclose
info such as assets, financial health, who board members and sr. execs are
4. Securities Act of 1934 Answer: Created Securities and Exchange Commission and
authorized SEC to govern secondary markets and the trading of corporate securities sold in the
US
5. Sarbanes-Oxley Act of 2002 Answer: Mandate strict reforms to improve financial
disclosures, prevent fraudu- lent financial practices, ensures every company's board of directors has
a financial expert as a board member
6. Dodd-Frank Act Answer: Passed in 2008. Improve financial market stability and curb risky
financial industry activitie (risky mortgages)
7. Financial Accounting Standards Board (FASB) Answer: The primary accounting
standard-setting body in the United States.
8. Generally Accepted Accounting Principles (GAAP) Answer: Authoritative
guidelines that define accounting practice at a particular time in the United States.
9. How did the Industrial Revolution lead to increased importance
of reliable financial statements? Answer: through the creation of a greater need for
investmentn capital
10. What contributed to the need for accounting in Egypt 5,000
years ago? Answer: Taxation
11. External User Answer: Investors, Lenders, Taxing authorities, Regulators who monitor
compliance, the Financial Press, Stock Exchanges, Suppliers, Customers
12. Internal User Answer: Management Team, Purchasers, Internal Decision makers
13. Financial Accounting Answer: The type of accounting that focuses on reporting
information to external users for compliance, performance or other stewardship reasons
14. Managerial Accounting Answer: a type of accounting focused primarily on providing
2/
9
