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.
42.Shareholders
a.and employees are the owners of a company.
b.receive repayment of the cash they have invested in a business.
c.receive payment from a company regardless if the company is profitable or not.
d.may benefit from increases in the value of their investment of a company.
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.
44.Generally accepted accounting principles
a.are laws created and enacted by Congress.
b.define the standards for internal management reporting.
c.increase the level of credibility in financial statements.
d.are created by the Securities and Exchange Commission.
45.Financial accounting practices and standards used in other countries
a.are the same as practices used by United States companies.
b.have different systems of financial accounting.
c.are more progressive than those used by United States companies.
d.will often have common practices similar to U.S. GAAP.
46.International Financial Reporting Standards (IFRS) are recognized as acceptable by major stock exchanges throughout the world
except
in
a.England.
b.Japan.
c.The United States.
d.France.
47.International Financial Reporting Standards (IFRS) are promulgated by
a.the United Nations.
b.the World Bank.
c.the Big Four accounting firms.
d.the IASB.
48.Which one of the following is true concerning the International Accounting Standards Board?
a.It is the international accounting standards setting body that is attempting to bring greater uniformity to worldwide accounting practices.
b.It approves all financial statements before they are distributed to users.
c.It consistently disagrees with the FASB on its rulemaking.
d.It requires both national and international companies around the world apply the same accounting principles.
49.The auditors are charged with responsibility
a.to detect financial fraud committed by employees during the course of their audit
b.to conduct a thorough and independent audit
c.to correct all errors in the financial statements
d.for the accuracy and completeness of the financial statements
50.Select the name that doesn’t fit with the others on the list.
a. PricewaterhouseCoopers
b. Sarbanes-Oxley
c. Deloitte & Touche
d. KPMG Peat Marwick