61. Ethical behavior requires:
A. That an auditor’s pay not depend on the figures in the client's reports.
B. Auditors to invest in businesses they audit.
C. Analysts to report information favorable to their companies.
D. Managers to use accounting information to benefit themselves.
E. That an auditor provides a favorable opinion.
62. Social responsibility:
A. Is a concern for the impact of one's actions on society as a whole.
B. Is a code that helps in dealing with confidential information.
C. Is required by the SEC.
D. Requires that all businesses conduct social audits.
E. Is mandated by the federal government.
63. Which of the following elements are found on the balance sheet?
A. Service revenue
B. Net income
C. Operating activities
D. Utilities expense
E. Retained earnings
64. The accounting guideline prescribing that financial statement information be supported by independent, unbiased evidence other than someone's belief or opinion is the:
A. Business entity principle
B. Monetary unit principle
C. Going-concern principle
D. Objectivity principle
E. Full disclosure principle
65. Businesses can take all of the following forms except:
A. Sole proprietorship
B. Common stock
C. Partnership
D. Corporation
E. Limited liability corporation
66. A corporation:
A. Is a legal entity separate and distinct from its owners.
B. Must have many owners.
C. Has shareholders who have unlimited liability for the acts of the corporation.
D. Is the same as a limited liability partnership.
E. Does not have to pay taxes.
67. Generally Accepted Accounting Principles:
A. Focus on the review of a situation.
B. Do not require financial statements.
C. Never change.
D. Intend to make information on the financial statements relevant, reliable, and comparable.
E. Oversees Security and Exchange Commission.
68. The organization that attempts to create more harmony among the accounting practices of different countries by identifying preferred practices and encouraging their worldwide acceptance is the:
A. AICPA
B. FASB
C. CAP
D. SEC
E. IASB
69. The private board that currently has the authority to establish U.S. generally accepted accounting principles is the:
A. APB
B. FASB
C. AAA
D. AICPA
E. SEC
70. Which of the following statements best describes the relationship of U.S. GAAP and IFRS?
A. They are identical.
B.
They are entirely different conceptual frameworks.
C. They are similar but not identical.
D. Neither has anything to do with accounting.
E. They both relate only to publicly traded companies.