... | | |b. auditing. | | |c. accounting. | | |d. economics. | | | | |2. |In the audit of historical financial statements, which of the following accounting bases is the most common? | |easy | | |c |a. Regulatory accounting principles. | | |b. Cash basis of accounting. | | |c. Generally accepted accounting principles. | | |d. Liquidation basis of accounting....
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...providing financial information for decision making is commonly called: c a. finance. b. auditing. c. accounting. d. economics. 2. easy In the audit of historical financial statements, which of the following accounting bases is the most common? c a. Regulatory accounting principles. b. Cash basis of accounting. c. Generally accepted accounting principles. d. Liquidation basis of accounting. 3. easy Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n): b a. accounting and bookkeeping service. b. attestation service. c. assurance service. d. tax service. 4. Three common types of attestation services are: easy a. audits, reviews, and “other” attestation services. a b. audits, verifications, and “other” attestation services. c. reviews, verifications, and “other” attestation services. d. audits, reviews, and verifications. 5. (SOX) easy The organization that is responsible for providing oversight for auditors of public companies is called the ________. d a. Auditing Standards Board. b. American Institute of Certified Public Accountants. c. Public Oversight Board. d. Public Company Accounting Oversight Board. 6. (SOX) The Sarbanes-Oxley Act applies to which of the following companies? easy a. All companies. c b. Privately held companies. c. Public companies. d. All public companies and privately held companies with assets greater than $500 million...
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...contract. A) True B) False 2. Stare decisis is typically of lesser importance to the Supreme Court in deciding constitutional issues than to trial courts in deciding specific controversies. A) True B) False 3. It is a violation of the separation of powers doctrine for State A to adopt a law identical to one adopted by State B. A) True B) False 4. Many areas of law important to businesses are governed by the Uniform Commercial Code. A) True B) False 5. A basic principle of statutory interpretation is that specific provisions in the statute are of greater weight than general provisions. A) True B) False 6. Only decisions by the United States Supreme Court can have the status of res judicata. A) True B) False 7. In deciding a case, a court will not use common law if there is a statute that applies to the dispute. A) True B) False 8. Criminal law is a subset of private law. A) True B) False 9. Tort law is a subset of private law that seeks to compensate the injured party for the loss caused by the actions of another. A) True B) False 10. The town of Somerset passed a law forbidding parking on Main Street between the hours of 9:00 a.m. and 4:00 p.m. This is an example of an ordinance. A) True B) False 11. The body of law that will be used to determine which state’s law will apply in a multi-state transaction is conflict of laws. A) True B) False 12. Dicta is another term for “controlling precedent.” A) True B) False 13....
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...in Political Economy True / False Questions 1. A country's political economy and culture are independent of each other. True False 2. It is not possible to have democratic societies that emphasize a mix of collectivism and individualism. True False 3. The communists believed that socialism could be achieved by democratic means, and turned their backs on violent revolution and dictatorship. True False 4. In an individualist society, the welfare of society is best served by letting people pursue their own economic self-interest. True False 5. The central message of collectivism is that individual economic and political freedoms are the ground rules on which a society should be based. True False 6. There is a global trend of societies shifting from individualism toward collectivism. True False 7. It is possible to have a democratic state where collective values predominate. True False 8. It is possible to have a totalitarian state that is hostile to collectivism and where some degree of individualism is encouraged. True False 9. The most practical form of democracy is direct democracy. True False 10. Most modern democratic states practice representative democracy. True False 11. In a market economy, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more. True False 12. The number of command...
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...responsible for providing information. True False 2. A financial statement audit is a systematic process of objectively obtaining and evaluating evidence. True False True False True False True False 3. Auditors should conduct their work with an attitude of professional skepticism. 4. A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to Milton is a good example of the need for unbiased reporting. 5. An integrated audit requires the auditor to assess the effectiveness of internal controls. 6. In all states, a CPA must have completed at least 150 hours of college semester hours to receive their license. True False 7. The Center for Audit Quality was started by the International Federation of Accountants. True False 8. The Center for Audit Quality has the primary authority to set auditing standards. True False 9. In an audit, management is considered the “client”. True False 10. Auditing is the process of attesting to assertions about economic actions and events. True False 11. Auditing is the process of verifying the accuracy of the financial statements. True False 12. Internal auditing only provides assurance about internal control effectiveness. True False 13. Auditing exists...
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...Here Question 1 True/False 0 points Modify Remove Question The need for assurance services arises because the interests of the users of information may be different from that of the interests of those responsible for providing information. Answer True False Add Question Here Question 2 True/False 0 points Modify Remove Question An audit of financial statements is a form of attestation service. Answer True False Add Question Here Question 3 True/False 0 points Modify Remove Question Independence is an attribute necessary to perform assurance services. Answer True False Add Question Here Question 4 True/False 0 points Modify Remove Question A bank using Milton Company's financial statements to determine the creditworthiness of a potential loan to Milton is a good example of the need for unbiased reporting. Answer True False Add Question Here Question 5 True/False 0 points Modify Remove Question Independence is only required for assurance service providers. Answer True False Add Question Here Question 6 True/False 0 points Modify Remove Question A CPA automatically qualifies as an assurance provider in all areas of business. Answer True False Add Question Here Question 7 True/False 0 points Modify Remove Question Attestation services are a subset of assurance services and always involve a report that goes to a third party. Answer True False Add Question Here Question 8 True/False 0 points Modify ...
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...True/False Questions 1. A Comprehensive Annual Financial Report (CAFR) would include an introductory section, management's discussion and analysis, basic financial statements, required supplementary information other than MD&A, combining and individual fund statements, narrative explanations, and statistical section. Answer: True 2. The three major sections of a CAFR are the Introductory, Financial, and Statistical sections. Answer: True 3. The introductory and statistical sections of a CAFR are required to be audited. Answer: False 4. State and local governments are not required to prepare a CAFR. Answer: True 5. Combining statements are required whenever a non-major column is used in one of the fund financial statements. Answer: True 6. A complete CAFR includes combining financial statements to reflect major funds. Answer: True 7. In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds. Answer: True 8. In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental funds only. Answer: False 9. The General Fund is not always considered to be a major fund when preparing fund basis financial statements. Answer: False 10. With respect to fund basis financial statements, governmental funds are considered to be...
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...1. The profit motive distinguishes "business" activities from "personal" activities. True False 2. All business expense deductions are claimed above the line. True False 3. All investment expenses are itemized deductions. True False 4. Rental or royalty expenses are deductible "for" AGI. True False 5. To be deductible, business expenses must be directly related to a business activity. True False 6. The phrase "ordinary and necessary" means that an expense must be appropriate and helpful for generating a profit. True False 7. All reasonable moving expenses are deductible if the move is a minimum of 35 miles in distance. True False 8. To deduct a moving expense, the taxpayer must be employed or self employed for a specific amount of time after the move. True False 9. Self employed taxpayers can deduct the cost of health insurance as long as they do not actually participate in their spouses' employer-provided health plan. True False 10. Self employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self employment taxes paid. True False 11. An individual who forfeits a penalty for prematurely withdrawing a certificate of deposit (CD) is allowed to net the penalty against the interest income from the CD. True False 12. Qualified education expenses for purposes of the deduction of interest on educational loans are expenses paid for the education of the taxpayer, the taxpayer's spouse, or a taxpayer's...
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...prior to the latest tax legislation dealing with a specific Code section are still effective to the extent they do not conflict with the provisions in the new legislation. 4) Final regulations have almost the same legislative weight as the IRC. 5) A revenue ruling is issued by the Internal Revenue Service only in response to a verbal inquiry by a taxpayer. 6) Taxpayers must pay the disputed tax prior to filing a case with the Tax Court. 7) Appeals from the U.S. Tax Court are to the Court of Appeals for the Federal Circuit. 8) Appeals from the Court of Appeals go to the Supreme Court under a writ of certiorari. The Supreme Court decides whether or not they will hear the case. 9) A citator enables tax researchers to locate authorities (e.g., cases and IRS pronouncements) that have cited a particular case. 10) According to the Statements on Standards for Tax Services, CPAs must verify all tax return information submitted by reviewing client documentation. 11) When a taxpayer contacts a tax advisor requesting advice as to the most advantageous way to dispose of a stock, the tax advisor is faced with A) a restricted-fact situation. B) a closed-fact situation. C) an open-fact situation. D) a recognized-fact situation. 12) Investigation of a tax problem that involves a closed-fact situation means that A) the client’s transactions have already occurred and the tax questions must now be resolved. B) the client’s tax return has yet to be filed. C) future events may be planned...
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...different users (stakeholders) of financial statement information. Shareholders Investors Government Agencies 2. Describe the main difference between Financial Accounting and Managerial Accounting. Reports to those outside the organization: 1. Owners 2. Lenders 3. Tax Authorities 4. Regulators Emphasize financial consequences of past activities Emphasize objectivity and verifiability Emphasizes precision Emphasize summary data concerning the entire organization Must follow GAAP Mandatory for external reports Managerial Accounting: Reports to those inside the organization for: a) Planning b) Directing and motivating c) Controlling d) Performance Evaluation Emphasize the decision affecting the future Emphasize relevance Emphasize the timeliness Emphasize detailed segment reports about departments, products, customers and employees. Need not follow GAAP Not mandatory 3. True or False - Accounting is not important to not-for-profit organizations. F 4. What does GAAP stand for? What is it? Generally accepted accounting principles (GAAP) refer to the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards or standard accounting practice. These include the standards, conventions, and rules that accountants follow in recording and summarizing and in the preparation of financial statements. 5. The ___________ ___________ ____________...
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...Assurance Services Learning Objective 1-1 1) The Sarbanes-Oxley Act applies to which of the following companies? A) All companies. B) Privately held companies. C) Public companies. D) All public companies and privately held companies with assets greater than $500 million. Answer Terms: Sarbanes-Oxley Act Diff: Easy Objective: LO 1-1 AACSB: Reflective thinking skills Topic: SOX 2) Which of the following is considered audit evidence? A) Oral statements Written Auditor made by management Communications Observation Y N N B) Oral statements made by management N C) Oral statements made by management Y Written Communications Y Auditor Observation Y Written Communications Y Auditor Observation Y D) Oral statements made by management N Answer Terms: Audit evidence Diff: Moderate Objective: LO 1-1 AACSB: Reflective thinking skills Written Communications N Auditor Observation Y 3) Evidence is paramount to audit and attestation engagements. List the four basic types of audit evidence. 4) The criteria by which an auditor evaluates the information under audit may vary with the information being audited. A) True B) False Terms: Criteria which an auditor evaluates information Diff: Easy Objective: LO 1-1 AACSB: Reflective thinking skills 5) The criteria used by an external auditor to evaluate published financial statements are known as generally accepted auditing standards. A) True B) False Answer Terms: Criteria used by external auditor to evaluate...
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...Test Bank to Accompany Microeconomics Seventh Edition by Pindyck / Rubinfeld Pearson Education © 2009 8/12/2008 Contents Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Preliminaries ........................................................................................................................1 The Basics of Supply and Demand..................................................................................16 Consumer Behavior...........................................................................................................55 Individual and Market Demand...................................................................................125 Uncertainty and Consumer Behavior ...........................................................................179 Production ........................................................................................................................236 The Cost of Production ...................................................................................................273 Profit Maximization and Competitive Supply ............................................................327 The Analysis of Competitive Markets ..........................................................................375 Chapter 10 Market Power: Monopoly and Monopsony.................................................................438 Chapter 11 Pricing with Market Power .....
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...Chapter 03 Professional Ethics True / False Questions 1. The Rules portion of the AICPA Code of Professional Conduct must be followed by only those members in private practice. True False 2. The AICPA Code of Professional Conduct derives its authority from the Bylaws of the AICPA. True False 3. An immaterial loan from the CPA to an officer of a client impairs the independence of the CPA. True False 4. Financial interests of a CPA's nondependent children are attributed directly to the CPA. True False 5. Statements on Accounting and Review Services are enforceable under the AICPA Code of Professional Conduct. True False 6. CPAs may not advertise as to any special expertise other than in accounting, auditing, and tax. True False 7. A CPA may receive a commission for recommending a particular computer system to an audit client. True False 8. The communications between CPAs and their clients are privileged under federal law. True False 9. CPAs can advertise the fees only for their nonattest services. True False 10. The American Institute of Certified Public Accountants has been the primary source for ethical rules for internal auditors. True False Multiple Choice Questions 11. ABC Company is audited by the Phoenix office of Willingham CPAs. Which of the following individuals would be least likely to be considered a "covered member"...
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...CHAPTER 1 Programs that make a computer useful for everyday tasks are known as ___. Application Software ****** Which of the following is not an example of operating system software? Microsoft Word ****** What function(s) does an interpreter perform with the instructions in a high-level programming language? Translates and Execute ****** The term used for a set of rules that must be strictly followed when writing a program is: Syntax ****** ____ was the first high-level programming language designed that could perform complex mathematical calculations. FORTRAN ****** Which computer language uses short words known as mnemonics for writing programs? Assembly ****** The process known as the ____ cycle is used by the CPU to execute instructions in a program. Fetch-decode-execute ****** Which of the following is not a microprocessor manufacturing company? Dell ****** The following is an example of an instruction written in which computer language? 10110000 Machine language ****** What is the encoding technique called that is used to store negative numbers in the computer’s memory? Twos complement ****** The ______ coding scheme contains a set of 128 numeric codes that are used to represent characters in a computer's memory. ASCII ****** What is the largest value that can be stored in one byte? 255 ****** The smallest storage location in a computer’s memory is known as a ______. bit ****** The disk drive is a secondary storage device that stores...
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...or transmission, or broadcast for distance learning. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOC/DOC 0 9 8 ISBN: 978-0-07-340737-1 MHID: 0-07-340737-2 Editor in Chief: Michael Ryan Editorial Director: Beth Mejia Sponsoring Editor: Mark Georgiev Marketing Manager: Pamela Cooper Editorial Coordinator: Briana Porco Production Editors: Melissa Williams/Melanie Field, Strawberry Field Publishing Cover Designer: Ashley Bedell Cover Photo: © Dan Trist/Corbis Media Project Manager: Thomas Brierly Production Supervisor: Louis Swaim Composition: This text was set in 10.5/12.5 Goudy by Aptara, Inc. Printing: Printed on 45# New Era Matte by R.R. Donnelley & Sons, Inc. Credits: The credits section for this book is on page 647, following the Answer Key in the back of the book, and is considered an extension of the copyright page. Library of Congress Cataloging-in-Publication Data Howard-Snyder, Frances The power of logic—/Frances Howard-Snyder, Daniel Howard-Snyder, Ryan Wasserman—4th ed. p. cm. Includes index. ISBN: 978-0-07-340737-1; ISBN: 0-07-340737-2 (alk. paper) 1. Logic I. Title. BC61.L28 2009 160—dc22 2008365431 www.mhhe.com About the Authors Frances Howard-Snyder is Professor of Philosophy at Western...
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