68.Which of the following is
not
a user of internal accounting information?
A. Store manager
B. Chief executive officer
C. Creditor
D. Chief financial officer
69.Characteristics of internal accounting information include all of the following
except:
A. It is audited by a CPA.
B. It must be timely.
C. It is oriented toward the future.
D. It measures efficiency and effectiveness.
70.Which of the following is
not
an important factor in ensuring the integrity of accounting information?
A. Institutional factors, such as standards for preparing information.
B. Professional organizations, such as the American Institute of CPAs.
C. Competence, judgment, and ethical behavior of individual accountants.
D. The cost of preparing the financial information.
71.Generally accepted accounting principles:
A. Are based on official decrees only.
B. Are based on tradition only.
C. Are based on an accountant's experience only.
D. May change over time.
72.The Sarbanes-Oxley Act of 2002 created:
A. The Security and Exchange Commission.
B. The Financial Accounting Standards Board.
C. The Public Company Accounting Oversight Board.
D. The Income Tax Return Overview Board.
73.Overseeing a company's affairs to ensure that the company is managed with the best interest of shareholders in mind is called:
A. Internal control.
B. Financial integrity.
C. Corporate governance.
D. The audit function.
74.The basic purpose of an audit is to:
A. Assure financial statements are in conformity with GAAP.
B. Provide as much useful information to decision makers as possible, regardless of cost.
C. Record changes in the financial position of an organization by applying the concepts of double entry accounting.
D. Meet an organization's need for accounting information as efficiently as possible.
75.Audits of financial statements are performed by:
A. The controller of the reporting company.
B. The Financial Accounting Standards Board (FASB).
C. The management of the reporting company.
D. Independent certified public accountants (CPAs).
76.The auditor's report on the published financial statements of a large corporation should be viewed as:
A. The opinion of independent experts as to the overall fairness of the statements.
B. The opinion of the corporation's chief accountant as to the overall fairness of the statements.
C. A guarantee by a firm of certified public accountants that the statements are accurate.
D. A guarantee by the Financial Statements Insurance Board that the statements do not overstate assets or net income.
77.The set of standards, assumptions, and concepts that form the "ground rules" for financial reporting in the United States is termed:
A. The conceptual framework.
B. Generally accepted accounting principles.
C. Statements of Financial Accounting Concepts.
D. American standards for certified public accountants.