95.Two of the steps in the accounting cycle are adjusting the accounts and closing the accounts.
96.Cash-basis accounting often fails to match expenses with revenues.
97.The matching concept leads accountants to select the recognition alternative that produces the lowest amount of net income.
98.Adjusting entries never affect a business's cash account.
99.Asset use transactions always involve the payment of cash.
100.The governance of a corporation includes the roles and responsibilities of the board of directors, managers, shareholders, and auditor.
101.The ethical standards for certified public accountants simply require that such accountants comply with applicable laws and regulations.
102.Certified public accountants are obligated to act in a way that serves the public interest.
103.The bankruptcies of Enron and WorldCom both indicated the occurrence of major audit failures.
104.The Sarbanes-Oxley Act includes several significant reforms that affect the auditing profession, but it did not reduce an audit firm's ability to provide non-audit services to its audit clients.
105.A business's internal controls are designed to reduce the probability of occurrence of fraud.
106.Providing services to customers on account is an asset source transaction.
107.An adjusting entry that decreases unearned revenue and increases service revenue is a claims exchange transaction.
108.Sometimes the recognition of revenue is accompanied by an increase in liabilities.
109.The collection of an account receivable is a claims exchange transaction.