Which statement is false?
a. Evidence does not have to prove an issue directly.
b. Evidence of habit may be admissible.
c. Evidence of liability insurance is admissible in federal court.
d. Once it has been determined that a privilege applies, this information may be used in discovery.
e. None of the above is false.
Which one of the following is not a characteristic of the Public Company Accounting Oversight Board?
a. Minimizes self-regulation in the accounting profession
b. Has the authority to amend, modify, repeal, or reject any audit standard of the ASB
c. Only one member can be an accountant, past or present
d. SEC has oversight and enforcement authority over the Board
e. Enforces auditing, quality control, and independence standards and rules
Which of the following non-financial data would be excluded from management evaluation in making a decision?
A. Employee turnover
B. Contribution margin
C. The environment
D. The corporate profile in the community
Which of the following applies to publicly traded corporations?
A. There is an organized market for buying and selling the company’s shares.
B. The company must prepare and issue its financial statements in conformity with generally adopted accounting principles.
C. The company must have its financial statements audited by an independent firm of CPA.
D. The company’s financial information must be submitted to the Securities and Exchange Commission.
E. All of the above.
Diverse accounting practices resulting from cultural, political, and regulatory differences across different countries result in:
a. A lack of comparability among financial statements which are consolidated.
b. Greater consistency in the application of accounting principles when preparing consolidated statements.
c. A decreased need for accountants with expertise in foreign accounting principles and consolidations.
d. Fewer accounting records.
Managerial accounting applies to each of the following types of businesses except
A) service firms.
B) merchandising firms.
C) manufacturing firms.
D) Managerial accounting applies to all types of firms
Using a list of corporate characteristics, the student will indicate whether the characteristic is an advantage or a disadvantage for the corporate form.
Options or term examples are:
1. Ownership and management are separated.
2. The entity has a continuous life.
3. Transfer of ownership is easy.
4. Stockholder’s liability is limited.
5. Exposure to double taxation is evident.
6. An entity can raise MORE money than a partnership or sole proprietorship.
7. Government regulation is expensive.
Which of the following does not describe accounting?
a. Language of business.
b. Is an end rather than a means to an end.
c. Useful for decision making.
d. Used by businesses, governments, nonprofit organizations, and individuals.
