9) Accounting standards are formulated by the:
A) SEC.
B) AICPA.
C) FASB.
D) IRS.
10) The Sarbanes-Oxley Act ("SOX") made it a criminal offense to:
A) steal shareholders' money.
B) default on loans from creditors.
C) declare bankruptcy.
D) falsify financial information.
11) Which of the following organizations requires publicly owned companies to be audited by independent accountants (CPAs)?
A) SEC
B) PCAOB
C) FASB
D) AICPA
12) Which of the following organizations or groups issue an opinion on whether a company's financial statements are a fair representation of the company's financial situation?
A) SEC
B) Board of Directors
C) Shareholders
D) Independent Accountants (CPAs)
Learning Objective 1-4
1) A not-for-profit organization has owners just like other forms of business.
2) Board members of a not-for-profit organization have fiduciary responsibilities that constitute legal obligations to manage the organization in a trustworthy manner.
3) There are four major forms of business organizations.
4) Similar to partnerships, in a limited-liability company (LLC), the members are personally liable for the debts and obligations of the business.
5) The largest businesses are usually organized as:
A) corporations.
B) partnerships.
C) proprietorships.
D) LLCs.
6) Businesses can be organized in a variety of forms. The types of businesses commonly found in the U.S. include all of the following EXCEPT:
A) corporations.
B) state government-run companies.
C) partnerships.
D) proprietorships.