Exam 1: Environment and Theoretical Structure of Financial Accounting

What provisions did the Public Company Accounting Reform and Investor Protection (Sarbanes-Oxley)Act of 2002 make for performance of nonaudit services by an audit firm?

CPAs are licensed by:

The primary focus for financial accounting information is to provide information useful for:

Which of the following is not a provision of the Public Company Accounting Reform and Investor Protection Act of 2002?

The FASB's due process invites various interested parties to indicate their opinions about whether financial accounting standards should be changed.

Use the following to answer questions The following information ($ in millions)comes from a recent annual report of Amazon.com,Inc.: -Compare net income (loss)for the year to net cash flow from operating activities.Why are these amounts different? Briefly explain.

Materiality can be affected by the dollar amount of an item,the nature of the item,or both.

Independent auditors express an opinion on the:

The primary objective of financial accounting information is to provide useful information to:

The primary historical reason for the FASB reversing its positions when political pressures occur is:

What are the key provisions of the Public Company Accounting Reform and Investor Protection (Sarbanes-Oxley)Act of 2002?

Corporations issue their shares to the investing public in the:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Enhancing qualitative characteristics of accounting information include:

Which of the following was the first private-sector entity that set accounting standards in the United States?

Which of the following is typically characterized as a principle,rather than an assumption?

Auditors play an important role in the resource allocation process by adding credibility to financial statements.

Comprehensive income is another term for net income.

Recognizing expected losses immediately,but deferring expected gains,is an example of:

Which of the following best demonstrates the full disclosure principle?