Accounting - Present and Past Quiz

<p>The entity’s financial position, operational results, cash flows, and other related information (D)</p> Signup and view all the answers

<p>Public accounting firms (A)</p> Signup and view all the answers

<p>Consulting firms (B)</p> Signup and view all the answers

<p>External stakeholders (B)</p> Signup and view all the answers

<p>Past financial activities (D)</p> Signup and view all the answers

<p>Because of varying interpretations and applications of accepted accounting principles. (C)</p> Signup and view all the answers

<p>He published the first comprehensive description of double-entry bookkeeping. (D)</p> Signup and view all the answers

<p>It created a need for reporting to absentee owners, or investors, of corporations. (A)</p> Signup and view all the answers

<p>It made financial statements appear to be more reliable. (D)</p> Signup and view all the answers

<p>Because there was no legal authority to establish financial reporting standards. (B)</p> Signup and view all the answers

<p>To establish certification laws and standardized audit procedures. (B)</p> Signup and view all the answers

<p>The need to record tax receipts. (B)</p> Signup and view all the answers

<p>Italian mercantile trading practices in that period. (A)</p> Signup and view all the answers

<p>Internal use by company management (A)</p> Signup and view all the answers

<p>Companies are generally allowed to self-regulate. (A)</p> Signup and view all the answers

<p>To establish standards applicable to government contracts. (A)</p> Signup and view all the answers

<p>1981 (D)</p> Signup and view all the answers

<p>1988 (A)</p> Signup and view all the answers

<p>For contracts exceeding $750,000, provided the contractor performs total contracts of $7.5 million+ (A)</p> Signup and view all the answers

<p>Managerial/cost accounting is primarily focused on internal uses, other types are not. (B)</p> Signup and view all the answers

<p>To house the CASB as an independent body. (D)</p> Signup and view all the answers

<p>The 1929 stock market crash and the associated accounting and auditing issues. (A)</p> Signup and view all the answers

<p>The Securities and Exchange Commission (SEC). (D)</p> Signup and view all the answers

<p>They addressed a specific issue within a narrow context. (B)</p> Signup and view all the answers

<p>Alternative methods for reporting similar transactions remained. (B)</p> Signup and view all the answers

<p>Empowering the SEC to establish accounting principles for SEC-registered companies. (A)</p> Signup and view all the answers

<p>To illustrate theoretical concepts with real-world examples. (A)</p> Signup and view all the answers

<p>The standards were developed without a common conceptual framework. (A)</p> Signup and view all the answers

<p>From financial accounting to managerial accounting. (D)</p> Signup and view all the answers

<p>The Accounting Principles Board (B)</p> Signup and view all the answers

<p>The American Institute of Accountants and the New York Stock Exchange. (A)</p> Signup and view all the answers

<p>Cost-volume-profit analysis including breakeven point. (D)</p> Signup and view all the answers

<p>Cost accumulation and assignment activities. (B)</p> Signup and view all the answers

<p>Development of the operating budget, including sales forecasts and cash budgets. (A)</p> Signup and view all the answers

<p>Cost analysis for control and performance reporting. (C)</p> Signup and view all the answers

<p>Payback, Net Present Value, and Internal Rate of Return. (C)</p> Signup and view all the answers

<p>To emphasize the adaptability of accounting and its unexplored potential. (A)</p> Signup and view all the answers

<p>To maintain the public's trust in the profession by ensuring reliable information. (C)</p> Signup and view all the answers

<p>Being honest and forthright in all dealings and communications. (A)</p> Signup and view all the answers

<p>Maintaining impartiality and freedom from conflicts of interest. (A)</p> Signup and view all the answers

<p>The member may be subject to disciplinary action by the AICPA. (B)</p> Signup and view all the answers

<p>Being able to operate autonomously and free of bias both in reality and appearance. (A)</p> Signup and view all the answers

<p>To call on management accountants to maintain high standards of ethical conduct. (D)</p> Signup and view all the answers

<p>Both codes highlight integrity and objectivity as essential elements of ethical behavior. (B)</p> Signup and view all the answers

<p>To serve the best interests of the public. (D)</p> Signup and view all the answers

A sector where accountants work as auditors and tax professionals before moving to industry.

Field of accounting focused on managing and reporting financial information for governmental entities.

Accounting practices tailored for non-profit organizations and charities managing donations and funds.

The process of preparing financial statements that show an entity's financial position and performance.

Documents summarizing the financial performance and position of an entity at a given time.

Individuals or groups not involved in day-to-day operations who use financial statements to make decisions.

Financial information reflecting past performance of an entity rather than current operations.

Accountants who examine financial statements for accuracy and adherence to regulations.

A system where every financial transaction affects at least two accounts.

A Franciscan monk who published the first comprehensive text on double-entry bookkeeping.

Shifted accounting needs toward corporate structures needing financial reporting.

A review process that enhances the credibility of financial reports by external auditors.

Guidelines governing how financial statements are prepared and presented.

Contains records dating back to 3000 B.C., such as Mesopotamian tax receipts.

Early 1900s organization of accountants to establish standards and certification.

Brought accounting methods and practices to the U.S. during late 19th century investment.

American Institute of Certified Public Accountants, a key accounting organization.

The process of establishing guidelines for financial reporting practices.

A law that regulates the offer and sale of securities to protect investors.

Legislation that governs securities transactions and grants SEC authority.

The Securities and Exchange Commission's power to set accounting principles.

Documents issued by the Committee on Accounting Procedure addressing specific accounting issues.

The early standard-setting body that issued accounting bulletins until replaced in 1959.

Replaced the Committee on Accounting Procedure as the main standard-setting body in 1959.

Efforts by these two standard-setting bodies to harmonize accounting standards.

A set of guidelines ensuring accountants uphold ethical standards in their work.

AICPA's code that sets rules for ethical behavior among CPAs, subject to disciplinary action.

The quality of being honest and straightforward in accounting practices.

The ability to remain impartial and free from conflicts of interest in accounting.

The auditor's ability to remain unbiased in their examination of financial statements.

Key characteristics like integrity, objectivity, competence, and independence expected from accountants.

Consequences for AICPA members failing to adhere to the Code of Professional Conduct.

The field of accounting focused on providing internal management with information for decision-making.

A method to understand how changes in cost and volume affect a company's operating income and net income.

The level of sales where total revenues equal total costs, resulting in zero profit.

Systems used for tracking and allocating costs associated with production and services.

A financial plan that outlines expected revenues and expenses for a specific period.

Methods used to analyze and report on the efficiency and effectiveness of operations.

The process of planning for investments in long-term assets, considering costs and benefits.

The time it takes for an investment to generate cash flows to recover its initial cost.

The practice where companies create their own internal reporting standards.

A body that establishes accounting standards for government contracts.

Accounting practices specifically required for work done under government contracts.

Originally established in the 1970s, abolished in 1981, and reestablished in 1988 as independent.

Contracts exceeding $750,000 require CASB standards if overall contracts exceed $7.5 million.

Guidelines for accounting practices used internally by a company's management.

The office that oversees standards for contract accounting established by CASB.