Question : 78. Which of the following not recognized as a source of : 1229324

78. Which of the following is not recognized as a source of generally accepted accounting principles? 
A. Widespread and long-term use of a particular practice.
B. The Financial Accounting Standards Board (FASB).
C. The American Institute of Certified Public Accountants (AICPA).
D. Statements of the Committee of Sponsoring Organizations (COSO).

79. In the phrase “generally accepted accounting principles,” the words generally accepted mean that the principles: 
A. Have been adopted by Congress or approved by the voters in a general election.
B. Are acceptable to the Internal Revenue Service.
C. Are understood and observed by all the participants in the financial reporting process.
D. Have been approved by a majority of the members of the Financial Accounting Standards Board.

80. An accounting principle must receive substantial authoritative support to qualify as generally accepted. Among the organizations and agencies that have been influential in the development of generally accepted accounting principles, which of the following has provided the most influential leadership? 
A. Internal Revenue Service.
B. Institute of Management Accountants.
C. Financial Accounting Standards Board.
D. New York Stock Exchange.

81. Which of the following has the least impact upon the reliability of financial statements issued by publicly owned corporations? 
A. Federal securities laws.
B. Professional judgment of the accountants who prepare the financial statements.
C. Audits of the financial statements by the Internal Revenue Service.
D. Competence and integrity of the CPAs who perform audits.

82. Which of the following is true? 
A. The existence of generally accepted accounting principles (GAAP) virtually eliminates the need for professional judgment except in very unusual circumstances.
B. Federal securities laws regarding the issuance of misleading financial statements apply not only to the independent auditors, but to management of the company as well.
C. Attaining a passing score on the part of the Uniform CPA Examination that covers professional ethics is evidence of integrity and commitment to ethical conduct.
D. A professional accountant should resign his position rather than become involved in the distribution of financial statements indicating insolvency.

83. The work of accountants practicing in public accounting may best be described as: 
A. Providing various types of accounting services to a wide variety of clients.
B. Preparing income tax returns for individuals and small businesses.
C. Developing and interpreting information tailored to the needs of business managers.
D. Helping governmental agencies carry out their various regulatory responsibilities.

84. The primary function of external auditors is to: 
A. Express an opinion on the fairness and reliability of the company’s financial statements.
B. Determine the accuracy of the management reports.
C. Evaluate the efficiency of operations and the degree of compliance with management’s policies in all departments within a large organization.
D. Determine that financial statements and all special reports to management are prepared in conformity with generally accepted accounting principles.

85. Management accountants primarily are concerned with developing information: 
A. For use in income tax returns.
B. Suited to the needs of stockholders, creditors, and other external decision makers.
C. In conformity with generally accepted accounting principles.
D. Suited to the needs of decision makers within the organization.

86. The principal function of CPAs is to: 
A. Audit income tax returns to determine if taxpayers have underpaid their income taxes.
B. Conduct audits to determine whether the employees of a business are performing their jobs honestly and efficiently.
C. Advise individual investors on stock market investments.
D. Perform audits to determine the fairness and reliability of a company’s financial statements.

87. The best definition of an accounting system is: 
A. Journals, ledgers, and worksheets.
B. Manual or computer-based records used in developing information about an entity for use by managers and also persons outside the organization.
C. The personnel, procedures, devices, and records used by an entity to develop accounting information and communicate this information to decision makers.
D. The concepts, principles, and standards specifying the information which should be included in financial statements, and how that information should be presented.