Exam 11: Quality of Earnings, corporate Governance, and Ifrs

Wall Street refers to earnings per share as "the number" because of the importance analysts give it in assessing the financial health of a company.

(True/False)

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Question 21

Match each responsibilities required by the SOX Act with each group(item).

must establish an avenue for reporting fraudulent activities anonymously

external auditors

must establish an audit committee

management

must oversee the auditing profession

PCAOB

Correct Answer:

Verified

must establish an avenue for reporting fraudulent activities anonymously

must establish an audit committee

must oversee the auditing profession

must maintain independence and assess the company's internal control system

(Matching)

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Question 22

Who must attest to the accuracy of a company's report on its internal controls?

(Multiple Choice)

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Question 23

Which of the following is evidence of a company's positive ethical climate?

(Multiple Choice)

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Question 24

The Sarbanes-Oxley Act of 2002 includes stronger rules regarding auditor independence.

(True/False)

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Question 25

Using a shorter useful life to depreciate long-term assets ________.

(Multiple Choice)

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Question 26

A good place to find out about a company's corporate governance is the company's Web site.

(True/False)

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Question 27

Who is ultimately responsible for the accuracy of a company's financial statements?

(Multiple Choice)

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Question 28

Tastee Bakery donated its used delivery truck to the local Health Right Clinic,which provides free healthcare for people with no medical insurance.The bakery will record the donation as an operating expense.Since Tastee Bakery uses double-declining-balance depreciation,the book value of the truck is only $1,500,but the "blue book" market value of the truck is $2,500.If Tastee Bakery records a charity expense of $1,500,this accounting choice would be considered ________.

(Multiple Choice)

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Question 29

As a result of the Sarbanes-Oxley Act (SOX)________.

(Multiple Choice)

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Question 30

Which of the following is an indication of good corporate governance?

(Multiple Choice)

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Question 31

What may be the effect on a company's financial statements in the year a company sets up a cookie jar reserve?

(Multiple Choice)

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Question 32

What is considered by analysts to be the most important number on Wall Street? How is this number calculated?

(Essay)

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Question 33

What is a difference between U.S.GAAP and IFRS?

(Multiple Choice)

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Question 34

Which of the following may indicate a company is manipulating earnings using cookie jar reserves?

(Multiple Choice)

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Question 35

Who are elected by the shareholders to represent the interest of the shareholders?

(Multiple Choice)

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Question 36

Who created the PCAOB?

(Multiple Choice)

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Question 37

Out of Africa,a multi-national corporation,had a very bad year.Management decided to write off a large amount of its long-term assets because they might lose value in future years.Management is ________.

(Multiple Choice)

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Question 38

Ken's Candy has been selling to Art's Quik Mart for thirty years.Lately Art's has been paying its bills increasingly slowly.Right now,Ken's Candy has $10,000 in accounts receivable on its books from Art's Quik Mart for candy sold to Art's over the last six months.Art's Quik Mart says it will pay the bill as soon as it can.Ken's Candy is trying to decide whether it should increase its allowance for uncollectible accounts to cover the amount owed by Art's.If Ken's Candy does not increase the allowance,this accounting choice would be considered ________.

(Multiple Choice)

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Question 39

The most widely used indicator of a company's overall performance is ________.

(Multiple Choice)

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Question 40

Showing 21 - 40 of 159

Wall Street refers to earnings per share as "the number" because of the importance analysts give it in assessing the financial health of a company.

Who must attest to the accuracy of a company's report on its internal controls?

Which of the following is evidence of a company's positive ethical climate?

The Sarbanes-Oxley Act of 2002 includes stronger rules regarding auditor independence.

Using a shorter useful life to depreciate long-term assets ________.

A good place to find out about a company's corporate governance is the company's Web site.

Who is ultimately responsible for the accuracy of a company's financial statements?

As a result of the Sarbanes-Oxley Act (SOX)________.

Which of the following is an indication of good corporate governance?

What may be the effect on a company's financial statements in the year a company sets up a cookie jar reserve?

What is considered by analysts to be the most important number on Wall Street? How is this number calculated?

What is a difference between U.S.GAAP and IFRS?

Which of the following may indicate a company is manipulating earnings using cookie jar reserves?

Who are elected by the shareholders to represent the interest of the shareholders?

Who created the PCAOB?

Out of Africa,a multi-national corporation,had a very bad year.Management decided to write off a large amount of its long-term assets because they might lose value in future years.Management is ________.

The most widely used indicator of a company's overall performance is ________.

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

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