Exam 13: Financial Reporting Processes

Which of the following statements is TRUE with respect to financial data characteristics?

Melody Corporation, which owns 51% of A+, uses a different AIS than A+ with different account numbers and names for many accounts. Which of the following methods could allow Melody to consolidate financial statements?

Which type of journal would be most appropriate for recording a sale on account to a customer?

Which of the following best describes a balanced scorecard?

What type of accounting provides managers with accounting information that helps them make decisions within the organization?

With respect to internal controls over financial reporting, what accounting role should be the control owner for general ledger reconciliation?

Which of the following statements is TRUE?

External auditors for a firm found errors in the recent financial statements. After further investigation into the issue, the auditors discovered a strong control environment that should have prevented the financial statement errors. Based on the information provided by the auditors, who do you suggest would be responsible for the errors?

Match the list journal entry test analytics with most appropriate description of how the test is used. -Unauthorized users

Financial statements for The Pastry Mom use the recommended chart of accounts from the AIS. Several investors in The Pastry Mom are individuals rather than institutional investors. How could The Pastry Mom's accounting team enhance the understandability of the financial statements and increase decision usefulness for the aforementioned investors?

The accounting equation, Assets = Liabilities + Owner's Equity, represents the

Which of the following statements is FALSE?

When an audit team performs a trial balance roll forward, the team uses a calculation to verify completeness by re-creating the ending balance by

What type of audit technique involves using a calculation to verify the completeness of the journal entry by adding a journal entry to the beginning balance and comparing it to the ending balance?

The success of using a balanced scorecard is the

The cost effectiveness of accounting information is determined by evaluating the cost of providing the information versus the

Overtime Fitness recently opened in a large northern city. Overtime gears its workout facility to athletes who are serious about cross-fit training with applicable equipment and trainers. Overtime's owners build much of the training equipment, leased and renovated the facility in a lower-rent part of town, and seeks to keeps membership fees lower than comparable facilities. What type of strategy has Overtime Fitness chosen to employ?

Which of the following statements is TRUE?

Melody Corporation owns 51% of a subsidiary, A-Plus Realty (A+), which maintains its own legal public entity and financial information. Considering the ownership stake of Melody in A+, which of the following statement is TRUE?

Match the list journal entry test analytics with most appropriate description of how the test is used. -Field analysis