Exam 1: Accounting: Information for Decision Making

The tailoring of an accounting report to meet the needs of a specific decision maker is more characteristic of financial accounting reports than of management accounting reports.

In the phrase "generally accepted accounting principles," the words accounting principles refers to:

The Financial Accounting Standards Board is:

The annual financial statements of large corporations such as Microsoft or PepsiCo need not be audited by independent certified public accountants,since these firms maintain large accounting departments as part of their organizations.

The Sarbanes-Oxley Act places responsibility on CEOs and CFOs of companies to certify the fairness of a company's financial statements.The Act also created the Public Company Accounting Oversight Board,which oversees the public accounting profession.

The Code of Ethics of the AICPA calls for a commitment to ethical behavior but not at the sacrifice of personal advantage.

Which organization best serves the professional needs of a CPA?

The American Institute of Certified Public Accountants has the legal authority over publicly held corporations to enforce compliance with generally accepted accounting principles.

The measures used by an organization to provide reasonable assurance that the organization produces reliable financial reports,complies with applicable laws and regulations,and conducts its operations in an efficient and effective manner are collectively referred to as:

Which of the following is generally not considered one of the general purpose financial statements issued by a corporation?

The American Institute of Certified Public Accountants has a code of professional conduct that expresses the accounting profession's recognition of its responsibilities to all of the following except:

In 2012 the SEC issued an extensive report regarding the use of IFRS by U.S.public companies and listed which of the following as a major obstacle to adopting IASB standards?

The Public Company Accounting Oversight Board is responsible for creating and promoting International Financial Reporting Standards.

Accounting terminology Listed below are nine accounting terms introduced in this chapter: Each of the following statements may (or may not)describe one of these terms.In the space provided below each statement,indicate the accounting term described,or answer "None" if the statement does not correctly describe any of the terms.More than one statement may describe a single term. (A. )The repayment to an investor of the amount originally invested in an enterprise. (B. )An examination of financial statements designed to determine their fairness in relation to generally accepted accounting principles. (C. )The accounting standards and concepts used in the preparation of financial statements. (D. )A system of measures designed to assure management that all aspects of the business are operating according to plan. (E. )A listing of assets,liabilities,and stockholders' equity as of a specific date. (F. )The payment of an amount for using another's money. (G. )An activity statement that shows the details of the company's activities involving cash during a period of time.

Which of the following is true?

Management accounting information is oriented toward the future while financial accounting information is historical in nature.

The field of accounting may best be described as:

The designation of CPA is given by:

Financial accounting information is characterized by all of the following except:

Which of the following is not recognized as a source of generally accepted accounting principles?