Question :
58. In comparison with a financial statement prepared in conformity with : 1229338
58. In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a management accounting report is more likely to:
A. Be used by decision makers outside of the business organization.
B. Focus upon the operation results of the most recently completed accounting period.
C. View the entire organization as the reporting entity.
D. Be tailored to the specific needs of an individual decision maker.
59. Which of the following decision makers is least likely to be among the users of management accounting reports developed by Sears Roebuck and Co.?
A. The chief executive officer of Sears.
B. The manager of the Automotive Department in a Sears’ store.
C. The manager of a mutual fund considering investing in Sears’ common stock.
D. Internal auditors within the Sears organization.
60. Which financial statement is primarily concerned with reporting the financial position of a business at a particular time?
A. The balance sheet.
B. The income statement.
C. The statement of cash flows.
D. All three statements are concerned with the financial position of a business at a particular time.
61. The measures used by an organization to provide reasonable assurance that the organization produces reliable financial reports, complies with applicable laws and regulations, and conducts its operations in an efficient and effective manner are collectively referred to as:
A. Generally accepted accounting principles.
B. Financial accounting standards.
C. Securities and exchange regulations.
D. The internal control structure.
62. A strong internal control structure:
A. Contributes to the accuracy and reliability of the accounting records.
B. Will prevent a business from operating at a loss.
C. Assures that a business will remain solvent.
D. Will prevent fraud, theft, and embezzlement.
63. Which of the following is considered a return “on” investment?
A. Dividends.
B. Repayment of a loan.
C. Purchase of an asset.
D. Securing a loan.
64. The basic purpose of audited financial statements is to:
A. Provide the reporting company with assurance that all assets are protected from theft or embezzlement.
B. Prepare financial statements for companies that do not have their own accounting departments.
C. Provide users of the financial statements with assurance that the statements are reliable and are presented in conformity with generally accepted accounting principles.
D. Provide both the reporting company and the users of the statements with a written guarantee that the statements are error-free.
65. Audits of financial statements are performed by:
A. The controller of the reporting company.
B. The Financial Accounting Standards Board (FASB).
C. The management of the reporting company.
D. Independent certified public accountants (CPAs).
66. The auditor’s report on the published financial statements of a large corporation should be viewed as:
A. The opinion of independent experts as to the overall fairness of the statements.
B. The opinion of the corporation’s chief accountant as to the overall fairness of the statements.
C. A guarantee by a firm of certified public accountants that the statements are accurate.
D. A guarantee by the Financial Statements Insurance Board that the statements do not overstate assets or net income.
67. The set of standards, assumptions, and concepts that form the “ground rules” for financial reporting in the United States is termed:
A. The conceptual framework.
B. Generally accepted accounting principles.
C. Statements of Financial Accounting Concepts.
D. American standards for certified public accountants.
