Question 1

What does the success of the AICPA code depend on?

Accepted Answer

A)  Understanding of the code by its users 
B)  The exercising of moral judgement in all things 
C)  The acceptance and use by the professionals governed by the code 
D)  Lack of misleading statements that destroys public confidence in the accounting profession 
E)  Supporting the public interest in accounting practices 
A)  Understanding of the code by its users 
B)  The exercising of moral judgement in all things 
C)  The acceptance and use by the professionals governed by the code 
D)  Lack of misleading statements that destroys public confidence in the accounting profession 
E)  Supporting the public interest in accounting practices

Question 2

The percentage of liabilities in a company's assets plus the percentage of owners' equity in its assets is always equal to 100.

Accepted Answer

A) True 
 B)False

Question 3

Which type of accountant uses audits to assist in the investigation of companies and as litigation support in crimes against companies?

Accepted Answer

A)  Management accountants 
B)  Private accountants 
C)  Forensic accountants 
D)  Financial accountants 
E)  Controllers 
A)  Management accountants 
B)  Private accountants 
C)  Forensic accountants 
D)  Financial accountants 
E)  Controllers

Question 4

Which of the following is an indication of how efficiently a firm is using its resources?

Accepted Answer

A)  Earnings per share 
B)  Debt 
C)  Activity ratio 
D)  Leverage 
E)  Profitability 
A)  Earnings per share 
B)  Debt 
C)  Activity ratio 
D)  Leverage 
E)  Profitability

Question 5

What is the term for the amount a firm will pay shareholders based on the size of their investment in the company?

Accepted Answer

A)  Leverage per share 
B)  Earnings per share 
C)  Solvency return 
D)  Current ration return 
E)  Profitability ratio 
A)  Leverage per share 
B)  Earnings per share 
C)  Solvency return 
D)  Current ration return 
E)  Profitability ratio

Question 6

Major projects,such as corporate mergers or buyouts,can adversely affect the long-term solvency ratio of a company.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is considered to be the most important internal financial statement for planning,controlling,and decision making?

Accepted Answer

A)  Income statement 
B)  Flow of cash statement 
C)  Balance sheet 
D)  Budget 
E)  Statement of projected earnings 
A)  Income statement 
B)  Flow of cash statement 
C)  Balance sheet 
D)  Budget 
E)  Statement of projected earnings

Question 8

Which are the two major fields of accounting?

Accepted Answer

A)  Managerial and forensic 
B)  Financial and managerial 
C)  Bookkeeping and advisory 
D)  Corporate and individual 
E)  Public and private 
A)  Managerial and forensic 
B)  Financial and managerial 
C)  Bookkeeping and advisory 
D)  Corporate and individual 
E)  Public and private

Question 9

Which of the following BEST describes a certified fraud examiner?

Accepted Answer

A)  A specialized managerial accountant concerned with issues of fraud 
B)  A specialized certified public accountant concerned with issues of fraud 
C)  A specialized forensic accountant concerned with issues of fraud 
D)  An accounting agent for the Securities and Exchange Commission concerned with issues of fraud 
E)  An accounting agent provided by the Sarbanes-Oxley Act of 2002 concerned with issues of fraud 
A)  A specialized managerial accountant concerned with issues of fraud 
B)  A specialized certified public accountant concerned with issues of fraud 
C)  A specialized forensic accountant concerned with issues of fraud 
D)  An accounting agent for the Securities and Exchange Commission concerned with issues of fraud 
E)  An accounting agent provided by the Sarbanes-Oxley Act of 2002 concerned with issues of fraud

Question 10

Why is a company's owners' equity important for investors and lenders?

Accepted Answer

A)  Owners' equity indicates potential profit. 
B)  Owners' equity determines how quickly liabilities will increase. 
C)  Owners' equity determines how much will be paid out as dividends. 
D)  Owners' equity indicates how much the owner has invested in the company. 
E)  Owners' equity indicates the level of security. 
A)  Owners' equity indicates potential profit. 
B)  Owners' equity determines how quickly liabilities will increase. 
C)  Owners' equity determines how much will be paid out as dividends. 
D)  Owners' equity indicates how much the owner has invested in the company. 
E)  Owners' equity indicates the level of security.

Question 11

Which of the following terms refers to the examination of a company's accounting system to determine whether its financial reports fairly represent its operations?

Accepted Answer

A)  Financial analysis 
B)  Forensic accounting 
C)  Portfolio analysis 
D)  Audit 
E)  Preliminary investigation 
A)  Financial analysis 
B)  Forensic accounting 
C)  Portfolio analysis 
D)  Audit 
E)  Preliminary investigation

Question 12

Which of the following refers to the financial statement detailing a firm's assets,liabilities,and owners' equity?

Accepted Answer

A)  Income statement 
B)  Statement of cash flow 
C)  Balance sheet 
D)  Expense report 
E)  Annual budget 
A)  Income statement 
B)  Statement of cash flow 
C)  Balance sheet 
D)  Expense report 
E)  Annual budget

Question 13

What is the statement of cash flow required by the SEC and why is it required?

Accepted Answer

Some companies prepare only balance shee

Question 14

Who is responsible for ensuring the accounting information system provides the reports and statements needed for management planning and decision making?

Accepted Answer

A)  Auditor 
B)  Controller 
C)  Fraud examiner 
D)  Managerial accountant 
E)  Bookkeeper 
A)  Auditor 
B)  Controller 
C)  Fraud examiner 
D)  Managerial accountant 
E)  Bookkeeper

Question 15

Ethical behavior requires that a CPA give precedence to public trust in the profession over the directions of her or his employer.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following ratios measures a firm's potential earnings?

Accepted Answer

A)  Short-term solvency ratio 
B)  Long-term solvency ratio 
C)  Profitability ratio 
D)  Activity ratio 
E)  Equity ratio 
A)  Short-term solvency ratio 
B)  Long-term solvency ratio 
C)  Profitability ratio 
D)  Activity ratio 
E)  Equity ratio

Question 17

Why are efforts to standardize global accounting practices important?

Accepted Answer

Although more than 138 countries have ad

Question 18

What can a CPA do to maintain technical and ethical standards through due care?

Accepted Answer

A)  Update competence through continuing accounting education and improving the quality of services. 
B)  Abide by the meaning and intent of the Code when determining the type of services offered to clients. 
C)  Be independent from clients when certifying that statements are true and genuine. 
D)  Promote the public's confidence in the profession at every opportunity. 
E)  Serve the public honorably. 
A)  Update competence through continuing accounting education and improving the quality of services. 
B)  Abide by the meaning and intent of the Code when determining the type of services offered to clients. 
C)  Be independent from clients when certifying that statements are true and genuine. 
D)  Promote the public's confidence in the profession at every opportunity. 
E)  Serve the public honorably.

Question 19

What do businesses use to identify,record,and retain financial information and includes the people,reports,procedures and other resources needed to compile transactions?

Accepted Answer

A)  Accounting information systems 
B)  Financial accounting 
C)  Bookkeeping 
D)  Accounting 
E)  Managerial accounting 
A)  Accounting information systems 
B)  Financial accounting 
C)  Bookkeeping 
D)  Accounting 
E)  Managerial accounting

Question 20

Which of the following statements BEST describes the need for global accounting standards?

Accepted Answer

A)  The complexity of the global market increases the risk of unethical accounting behavior by allowing accountants to choose which national GAAP standards are best for their clients. 
B)  The rise of the global market increases the risk of money laundering and offshore accounting. 
C)  The rise of the global market increases the risk of fraudulent business transactions across borders. 
D)  The rise of the global market increases the risk of international dumping and profit-skimming. 
E)  The rise of the global market increases the risk of the creation of dummy companies and accounts for the purpose of dumping toxic assets. 
A)  The complexity of the global market increases the risk of unethical accounting behavior by allowing accountants to choose which national GAAP standards are best for their clients. 
B)  The rise of the global market increases the risk of money laundering and offshore accounting. 
C)  The rise of the global market increases the risk of fraudulent business transactions across borders. 
D)  The rise of the global market increases the risk of international dumping and profit-skimming. 
E)  The rise of the global market increases the risk of the creation of dummy companies and accounts for the purpose of dumping toxic assets.

What does the success of the AICPA code depend on?

The percentage of liabilities in a company's assets plus the percentage of owners' equity in its assets is always equal to 100.

Which type of accountant uses audits to assist in the investigation of companies and as litigation support in crimes against companies?

Which of the following is an indication of how efficiently a firm is using its resources?

What is the term for the amount a firm will pay shareholders based on the size of their investment in the company?

Major projects,such as corporate mergers or buyouts,can adversely affect the long-term solvency ratio of a company.

Which of the following is considered to be the most important internal financial statement for planning,controlling,and decision making?

Which are the two major fields of accounting?

Which of the following BEST describes a certified fraud examiner?

Why is a company's owners' equity important for investors and lenders?

Which of the following terms refers to the examination of a company's accounting system to determine whether its financial reports fairly represent its operations?

Which of the following refers to the financial statement detailing a firm's assets,liabilities,and owners' equity?

What is the statement of cash flow required by the SEC and why is it required?

Who is responsible for ensuring the accounting information system provides the reports and statements needed for management planning and decision making?

Ethical behavior requires that a CPA give precedence to public trust in the profession over the directions of her or his employer.

Which of the following ratios measures a firm's potential earnings?

Why are efforts to standardize global accounting practices important?

What can a CPA do to maintain technical and ethical standards through due care?

What do businesses use to identify,record,and retain financial information and includes the people,reports,procedures and other resources needed to compile transactions?

Which of the following statements BEST describes the need for global accounting standards?

The US Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 15: The Role of Accountants and Accounting Information

What does the success of the AICPA code depend on?

The percentage of liabilities in a company's assets plus the percentage of owners' equity in its assets is always equal to 100.

Which type of accountant uses audits to assist in the investigation of companies and as litigation support in crimes against companies?

Which of the following is an indication of how efficiently a firm is using its resources?

What is the term for the amount a firm will pay shareholders based on the size of their investment in the company?

Major projects,such as corporate mergers or buyouts,can adversely affect the long-term solvency ratio of a company.

Which of the following is considered to be the most important internal financial statement for planning,controlling,and decision making?

Which are the two major fields of accounting?

Which of the following BEST describes a certified fraud examiner?

Why is a company's owners' equity important for investors and lenders?

Which of the following terms refers to the examination of a company's accounting system to determine whether its financial reports fairly represent its operations?

Which of the following refers to the financial statement detailing a firm's assets,liabilities,and owners' equity?

What is the statement of cash flow required by the SEC and why is it required?

Who is responsible for ensuring the accounting information system provides the reports and statements needed for management planning and decision making?

Ethical behavior requires that a CPA give precedence to public trust in the profession over the directions of her or his employer.

Which of the following ratios measures a firm's potential earnings?

Why are efforts to standardize global accounting practices important?

What can a CPA do to maintain technical and ethical standards through due care?

What do businesses use to identify,record,and retain financial information and includes the people,reports,procedures and other resources needed to compile transactions?

Which of the following statements BEST describes the need for global accounting standards?

The US Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology Itfor Business

Understanding Money and the Role of Banking

Managing Business Finances

Filters