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Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review - Document preview page 1

Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review - Page 1

Document preview content for Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review

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

Explores financial reporting standards and internal control mechanisms.

Olivia Smith
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12 months ago
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Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review - Page 1 preview imageGrade Details-All QuestionsUnderstanding Internal Controls, Financial Reporting, and GAAP: AComprehensive Review1.Question :Internal controls are important because theyStudent Answer:prevent fraud and misleading financialstatements.eliminate fraud.guarantee accurate financial statements.None of the above.Points Received:0 of 1Comments: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 receivingreport to an invoice.All employees must take their vacations.All of the above would be part of a stronginternal control system.Points Received:0 of 1Comments:3.Question :The bank reconciliationStudent Answer:should be prepared by an employee who records cashtransactions.is sent to the bank forverification.is for information purposes only.none of the above.
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Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review - Page 2 preview image
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Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review - Page 3 preview imagePoints Received:(not graded)Comments:4.Question :A special cash fund used to make small payments that occurfrequently 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 fairreporting (ie, in accordance with GAAP) of financial statements is:Student Answer:As independent (or external) auditors, CPAs are primarilyresponsible forthe company’s internal auditorthe DEO & CFO.the SEC.Points Received:(not graded)Comments:6.Question :The following is one of the fundamental criteria for recognition?Student Answer:ReliabilityMeasurabilityRelevance
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Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review - Page 4 preview imageAll of the above.PointsReceived:(not graded)Comments:7.Question :Which of the following is a purpose of the conceptual framework ofaccounting?Student Answer:To provide definitions of key terms and fundamental conceptsTo assistaccountants in selecting among alternative accountingand reporting methodsTo assist the FASB in the standard-setting processAll of the above.Points Received:(not graded)Comments:8.Question :Which of thefollowing statements concerning the objectives offinancial 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 ofaccountinginformation.The objectives were the end result of the FASB's conceptualframework 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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Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review - Page 5 preview imageForm 10-Q is a quarterly report of significant events required bythe SEC.Form 8-K is the annual report submitted by small businesses tothe SEC.None ofthe above are true.Points Received:1 of 1Comments:10.Question :Which of the following is included in the highest authoritative levelof GAAP?Student Answer:FASB StatementsAPB OpinionsFASB StaffPositionsAll of the above are included in the highest authoritative level ofGAAP.Points Received:0 of 1Comments:11.Question :Which of the following is NOT a characteristic of the FinancialAccounting Standards Board?Student Answer:FASB members may retain their positions with previousemployers.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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Understanding Internal Controls, Financial Reporting, and GAAP: A Comprehensive Review - Page 6 preview image12.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 ofFinancial 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 feesGains from illegalactivitiesClergy fees and contributionsAll of the abovePoints Received:(not graded)Comments:14.Question :Mr. Rogers has a membership at the University Club. He pays thefollowing during the year:Membership dues$1,600Business lunches4,500Personal dinners with his wife 250How much may Mr. Rogers deduct as entertainment expenses?Student Answer:$6,100$1,850$6,350$2,250
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Accounting

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