AICPA BB: Critical Thinking AICPA FN: Reporting 40. Equity investments are bought and sold only on the first day of each year. in stock exchanges such as the NASDAQ. by a independent auditors. company’s from and to the SEC. Ans: B KP 4 BT: K Difficulty: Easy TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 41. Generally accepted accounting principles are determined by a. annual voting by all certified public accountants. b. a privately financed body known as the FASB. c. the SEC. d. a congressional committee that passes laws governing accounting practice. Ans: B KP 5 BT: K Difficulty: Moderate TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 42. Shareholders and employees are the owners of a company. receive repayment of the cash they have invested in a business. receive payment from a company regardless if the company is profitable or not. may benefit from increases in the value of their investment of a company. Ans: D KP 4 BT: K Difficulty: Easy TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 43. When management goes beyond ethical boundaries in its attempt to make financial statements appear attractive, management a. should be commended for its creativity. b. will not need an annual audit. c. should pay its employees larger bonuses. d. is perpetrating fraud or possible criminal activity. Ans: D KP 5 BT: C Difficulty: Easy TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 44. Generally accepted accounting principles are laws created and enacted by Congress. define the standards for internal management reporting. increase the level of credibility in financial statements. are created by the Securities and Exchange Commission. Ans: C KP 5 BT: K Difficulty: Easy TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting
AICPA BB: Critical Thinking AICPA FN: Reporting 40. Equity investments are bought and sold only on the first day of each year. in stock exchanges such as the NASDAQ. by a company’s independent auditors. from and to the SEC. Ans: B KP 4 BT: K Difficulty: Easy TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 41. Generally accepted accounting principles are determined by a. annual voting by all certified public accountants. b. a privately financed body known as the FASB. c. the SEC. d. a congressional committee that passes laws governing accounting practice. Ans: B KP 5 BT: K Difficulty: Moderate TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 42. Shareholders and employees are the owners of a company. receive repayment of the cash they have invested in a business. receive payment from a company regardless if the company is profitable or not. may benefit from increases in the value of their investment of a company. Ans: D KP 4 BT: K Difficulty: Easy TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 43. When management goes beyond ethical boundaries in its attempt to make financial statements appear attractive, management a. should be commended for its creativity. b. will not need an annual audit. c. should pay its employees larger bonuses. d. is perpetrating fraud or possible criminal activity. Ans: D KP 5 BT: C Difficulty: Easy TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 44. Generally accepted accounting principles are laws created and enacted by Congress. define the standards for internal management reporting. increase the level of credibility in financial statements. are created by the Securities and Exchange Commission. Ans: C KP 5 BT: K Difficulty: Easy TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting
Pratt--Financial%20Accounting%20in%20an%20Economic%20Context%208e.docx