Exam 7: Accounting: Decision Making by the Numbers

According to Arthur Levitt,a former chair of the U.S.Securities and Exchange Commission (SEC),what has resulted from the degree of flexibility that currently exists within GAAP?

Internal auditors are also known as chartered accountants.

As a result of the accounting scandals of the late 1990s and early 21st century,many countries have imposed new ethics-related requirements on accountants.

Triple bottom line is a broader set of performance measures focusing on people,planet,and profits.

Which of the following would be listed in the owners' equity section of a balance sheet?

Which statement describes the accounting profession during the first few years of the 21st century?

Which of the following is concerned with preparing financial statements for external stakeholders according to a fixed schedule?

Identify the four goals of generally accepted accounting principles (GAAP).

A college student registers for classes and pays the tuition with a credit card.Because it uses accrual-basis accounting,the college will recognize the payment as revenue as soon as the transaction turns into cash in the school's bank account.

A company's balance sheet will "balance" even if it is on the verge of bankruptcy.

What is the body of principles that guides the financial accounting process used to create financial statements?

In order for accounting firms to perform external audits that meet the needs of stakeholders,what must the firms do?

The owners' equity section of the balance sheet indicates the claims a firm's owners have against their company's assets.

Which of the following would provide stakeholders with information about how a firm obtained and used cash in the most recent accounting period,as well as its cash balance at the end of the accounting period?

Through additional preparation,accountants may become a certified management accountant (CMA),chartered accountant (CA),and/or certified internal auditor.These certifications signify advanced preparation in their field.

Many of today's leading accountants are using TBL performance measures,TBL stands for True Bottom Line.

Mason owns stock in Munnymacher Inc.and wants to see if he can identify any trends in its financial performance over the past few years.What would he therefore want to perform?

Arvid's Moving and Storage has a fleet of 37 trucks.Arvid currently has two of his own mechanics who perform all of the routine maintenance as well as other minor repairs on all of the trucks.However,he wonders whether outsourcing this work would be more cost-effective and asks his accountant to work with two managers to analyze such a change.What type of analysis would the accountant be most likely to use?

Business expenses are available resources that stakeholders control.

Key users of a corporation's accounting information include managers,government agencies,and shareholders.