Question 1

Under the Code of Ethics for CPAs,what should a CPA do in regards to their responsibilities as a professional?

Accepted Answer

A)   The CPA should demonstrate commitment to the profession by respecting and maintaining the public trust.
B)   The CPA should perform all professional activities with highest regards for profitability.
C)   The CPA should exercise "due care," through professional improvement.
D)   The CPA should identify conflicts of interest and the appearance of conflicts of interest in performing their professional responsibilities.
E)   The CPA should use a high level of morality that is sensitive to bringing credit to their profession. E

Question 2

In which accounting standard did the FASB and the IASB jointly propose new standards designed to improve the comparability of disclosures in financial statements?

Accepted Answer

A)   In devaluing financial assets
B)   In revenue recognition
C)   In valuing assets
D)   In expected loss modeling
E)   In fair value discloser E

Question 3

Which of the following terms refers to the amount of money that owners would receive if they sold all of a company's assets and paid all of its liabilities?

Accepted Answer

A)   Asset
B)   Owners' equity
C)   Inventory
D)   Profit
E)   Credit B

Question 4

What is the International Accounting Standards Board?

Accepted Answer

The answer of What is the International Accounting Standards Board?...

Question 5

The most commonly used liquidity ratio is found by calculating current assets to current liabilities.

Accepted Answer

A) True 
 B)False

Question 6

How does the lack of global accounting standards affect U.S.-based companies?

Accepted Answer

A)   Unethical U.S. companies will use whichever standard creates the most benefit for them.
B)   Using standards in countries where they do business allows for greater opportunity in the international market.
C)   Reporting performance in a variety of consolidated statements for global affiliates will minimize understanding, thereby minimizing attempted leveraged buyouts.
D)   There may be inconsistent and conflicting information that creates confusion for stakeholders.
E)   Assets can be values according to one standard, revenue and debt according to other standards, in an overall goal of presenting positive performance levels.

Question 7

An audit examines whether a firm's financial statement conforms to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 8

For what types of organizations do forensic accountants work?

Accepted Answer

The answer of For what types of organizations do forensic...

Question 9

Which of the following describes assets such as patents and trademarks?

Accepted Answer

A)   Liquid assets
B)   Fixed assets
C)   Intangible assets
D)   Current assets
E)   Limited assets

Question 10

What does a statement of cash flow describe?

Accepted Answer

A)   Gross profit compared to operating expenses
B)   Value of revenues compared to cost of revenues
C)   Yearly cash receipts and cash payments
D)   Cost of obtaining materials needed to produce products
E)   Funds that flow into the business from the sale of the goods or services provided

Question 11

Which organization provides guidelines for ethical conduct for public accountants?

Accepted Answer

A)   AICPA
B)   SEC
C)   GAAP
D)   FASB
E)   CMA

Question 12

Discuss the role of a private accountant within large and small firms.

Accepted Answer

The answer of Discuss the role of a private accountant...

Question 13

Demonstrating a commitment to the profession by respecting and maintaining the public trust and serving the public honorably is an example of what type of obligation under the code of Ethics for CPAs?

Accepted Answer

A)   Responsibilities as a professional
B)   Being objective and independent
C)   Maintaining technical and ethical standards through due care
D)   Serving the public interest
E)   Increasing profitability

Question 14

What is the accounting equation?

Accepted Answer

The answer of What is the accounting equation?...

Question 15

Identify the potential users of accounting information.

Accepted Answer

The answer of Identify the potential users of accounting information....

Question 16

Give three examples of management advisory services.

Accepted Answer

The answer of Give three examples of management advisory services....

Question 17

Which of the following is the difference between revenues and the cost of revenues?

Accepted Answer

A)   Net income
B)   Gross profit
C)   Accounts payable
D)   Interest expense
E)   Cash flow

Question 18

A firm's controller is often the firm's chief accounting officer.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following terms refers to the recording of financial transactions?

Accepted Answer

A)   Bookkeeping
B)   Finance
C)   Controlling
D)   Budgeting
E)   Auditing

Question 20

Which of the following is a designation for those who have passed the IMA's experience and examination requirements?

Accepted Answer

A)   Certified management accountant (CM
A)  
B)   Certified public accountant (CP
A)  
C)   Controller
D)   Private accountant
E)   Forensic accountant

Exam 15: The Role of Accountants and Accounting Information

Under the Code of Ethics for CPAs,what should a CPA do in regards to their responsibilities as a professional?

In which accounting standard did the FASB and the IASB jointly propose new standards designed to improve the comparability of disclosures in financial statements?

Which of the following terms refers to the amount of money that owners would receive if they sold all of a company's assets and paid all of its liabilities?

What is the International Accounting Standards Board?

The most commonly used liquidity ratio is found by calculating current assets to current liabilities.

How does the lack of global accounting standards affect U.S.-based companies?

An audit examines whether a firm's financial statement conforms to generally accepted accounting principles.

For what types of organizations do forensic accountants work?

Which of the following describes assets such as patents and trademarks?

What does a statement of cash flow describe?

Which organization provides guidelines for ethical conduct for public accountants?

Discuss the role of a private accountant within large and small firms.

Demonstrating a commitment to the profession by respecting and maintaining the public trust and serving the public honorably is an example of what type of obligation under the code of Ethics for CPAs?

What is the accounting equation?

Identify the potential users of accounting information.

Give three examples of management advisory services.

Which of the following is the difference between revenues and the cost of revenues?

A firm's controller is often the firm's chief accounting officer.

Which of the following terms refers to the recording of financial transactions?

Which of the following is a designation for those who have passed the IMA's experience and examination requirements?