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Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review

Explores financial reporting standards and internal control mechanisms.

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    Grade Details - All Questions Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review 1. Question : Internal controls are important because they Student Answer: prevent fraud and misleading financial statements. eliminate fraud. guarantee accurate financial statements. None of the above. Points Received: 0 of 1 Comments: 2. Question : Which of the following reflects a strong internal control system? Student Answer: All employees are well supervised. A single employee is responsible for comparing a receiving report to an invoice. All employees must take their vacations. All of the above would be part of a strong internal control system. Points Received: 0 of 1 Comments: 3. Question : The bank reconciliation Student Answer: should be prepared by an employee who records cash transactions. is sent to the bank for verification. is for information purposes only. none of the above.

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    Points Received: (not graded) Comments: 4. Question : A special cash fund used to make small payments that occur frequently is called a(n) Student Answer: operating expenses fund. change fund. market fund. petty cash fund. Points Received: (not graded) Comments: 5. Question : The organization responsible for expressing an opinion about the fair reporting (ie, in accordance with GAAP) of financial statements is: Student Answer: As independent (or external) auditors, CPAs are primarily responsible for the company’s internal auditor the DEO & CFO. the SEC. Points Received: (not graded) Comments: 6. Question : The following is one of the fundamental criteria for recognition? Student Answer: Reliability Measurability Relevance

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    All of the above. Points Received: (not graded) Comments: 7. Question : Which of the following is a purpose of the conceptual framework of accounting? Student Answer: To provide definitions of key terms and fundamental concepts To assist accountants in selecting among alternative accounting and reporting methods To assist the FASB in the standard - setting process All of the above. Points Received: (not graded) Comments: 8. Question : Which of the following statements concerning the objectives of financial reporting is NOT correct? Student Answer: The objectives are intended to be specific in nature. The objectives are primarily for the needs of internal users of accounting information. The objectives were the end result of the FASB's conceptual framework project. None of the above are correct.. Points Received: (not graded) Comments: 9. Question : Which of the following is NOT true? Student Answer: Form 10 - K is required under the FASB Conceptual Framework.

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    Form 10 - Q is a quarterly report of significant events required by the SEC. Form 8 - K is the annual report submitted by small businesses to the SEC. None of the above are true. Points Received: 1 of 1 Comments: 10. Question : Which of the following is included in the highest authoritative level of GAAP? Student Answer: FASB Statements APB Opinions FASB Staff Positions All of the above are included in the highest authoritative level of GAAP. Points Received: 0 of 1 Comments: 11. Question : Which of the following is NOT a characteristic of the Financial Accounting Standards Board? Student Answer: FASB members may retain their positions with previous employers. FASB members must come from CPA firms. FASB members are part - time. None of the above. Points Received: (not graded) Comments:

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    12. Question : Documents issued by the FASB include which of the following: Student Answer: Statements of Financial Accounting Standards. Interpretations of Statements of Financial Accounting Standards. Statements of Financial Accounting Concepts. All of the above.. Points Received: (not graded) Comments: 13. Question : Which of the following are included in gross income? Student Answer: Jury duty fees Gains from illegal activities Clergy fees and contributions All of the above Points Received: (not graded) Comments: 14. Question : Mr. Rogers has a membership at the University Club. He pays the following during the year: Membership dues $1,600 Business lunches 4,500 Personal dinners with his wife 250 How much may Mr. Rogers deduct as entertainment expenses? Student Answer: $6,100 $1,850 $6,350 $2,250

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