ACCT 320 KU Exam 1 questions with
verified answers A+ passed
Balance Sheet - correct answer ✔✔Resources and claims to those resources at a specific time.
Income Statement - correct answer ✔✔Revenues, expenses, gains, and losses over a period of
time
Statement of Cash Flows - correct answer ✔✔Sources and uses of cash over a period of time
Statement of Comprehensive Income - correct answer ✔✔Net income +/- other comprehensive
income
Parties Involved in Financial Reporting - correct answer ✔✔1. SEC
2. American Institute of Certified Public Accountants (AICPA)
3. Financial Accounting Standards Board (FASB)
Issues in Financial Reporting - correct answer ✔✔1. GAAP in political environment
2. The expectations gap
3. Sarbanes-Oxley Act (SOX)
4. Financial Reporting challenges
5. International Accounting Standards
6. Ethics in the environment of financial accounting
Sarbanes-Oxley Act (SOX) - correct answer ✔✔a. Increased financial resources to the SEC to
combat fraud.
, b. Established the Public Accounting Oversight Board.
c. Established stronger independence rules for auditors
d. Required CEO's and CFO's to personally certify financial statements and disclosures
e. Required that audit committees have independent memebers including ones with financial
expertise
f. established a code of ethics for senior financial officers
Fundamental Qualities - correct answer ✔✔1. Relevance
2. Faithful Representation
Enhancing Qualities - correct answer ✔✔1. Comparability
2. Verifiability
3. Timeliness
4. Understandability
Relevance - correct answer ✔✔A fundamental quality that pertains to the decision at hand.
Capable of making a difference in a decision.
Faithful Representation - correct answer ✔✔A fundamental quality whose information can be
relied upon to reflect what really happened or existed.
Comparablility - correct answer ✔✔An enhancing quality whose accounting
methods/measurements are similar from company to company and from period to period
within a company.
Verifiability - correct answer ✔✔An enhancing quality where others can reach the same
conclusions or observe the same results; role of the external auditors
verified answers A+ passed
Balance Sheet - correct answer ✔✔Resources and claims to those resources at a specific time.
Income Statement - correct answer ✔✔Revenues, expenses, gains, and losses over a period of
time
Statement of Cash Flows - correct answer ✔✔Sources and uses of cash over a period of time
Statement of Comprehensive Income - correct answer ✔✔Net income +/- other comprehensive
income
Parties Involved in Financial Reporting - correct answer ✔✔1. SEC
2. American Institute of Certified Public Accountants (AICPA)
3. Financial Accounting Standards Board (FASB)
Issues in Financial Reporting - correct answer ✔✔1. GAAP in political environment
2. The expectations gap
3. Sarbanes-Oxley Act (SOX)
4. Financial Reporting challenges
5. International Accounting Standards
6. Ethics in the environment of financial accounting
Sarbanes-Oxley Act (SOX) - correct answer ✔✔a. Increased financial resources to the SEC to
combat fraud.
, b. Established the Public Accounting Oversight Board.
c. Established stronger independence rules for auditors
d. Required CEO's and CFO's to personally certify financial statements and disclosures
e. Required that audit committees have independent memebers including ones with financial
expertise
f. established a code of ethics for senior financial officers
Fundamental Qualities - correct answer ✔✔1. Relevance
2. Faithful Representation
Enhancing Qualities - correct answer ✔✔1. Comparability
2. Verifiability
3. Timeliness
4. Understandability
Relevance - correct answer ✔✔A fundamental quality that pertains to the decision at hand.
Capable of making a difference in a decision.
Faithful Representation - correct answer ✔✔A fundamental quality whose information can be
relied upon to reflect what really happened or existed.
Comparablility - correct answer ✔✔An enhancing quality whose accounting
methods/measurements are similar from company to company and from period to period
within a company.
Verifiability - correct answer ✔✔An enhancing quality where others can reach the same
conclusions or observe the same results; role of the external auditors
