Accounting 1 Final Review

Front

While auditing a company, you find that several of its employees are not satisfied with their jobs. You decide not to write this in the report because of which of the following reasons?

Back

It is not material information to describe the financial health of the company

Front

Accountants record expenses in the same time period in which they occurred. This is called:

Back

The matching principle

Front

Which of the following pieces of legislation is the result of the Enron scandal? Family Leave Act, Truth in Advertising, Sarbanes-Oxly Act, Fair Trade Act

Back

Sarbanes-Oxly Act

Front

While creating a disaster plan, Accounting decides that it needs off-site data storage. Which of the following would they use to store the information? Encryption, Investors, Flashdrive, Cloud storage

Back

Cloud storage

Front

Where will you find the total amount that is owed to your business by customers?

Back

Under accounts receivable on the balance sheet

Front

You have invested $30,000 of your money into your company. In what part of the financial statements would you find this information?

Back

On the balance sheet under equity

Front

Who is LEAST likely to use accounting reports for decision making? Options: Investors, Senior management, Banks, Customers

Back

Customers

Front

Which of the following is part of the accounting process? Organizing data, Interpreting data, Collecting information, All are part of the accounting process

Back

All are part of the accounting process

Front

Who investigated Arthur Andersen and Enron?

Back

SEC (Securities & Exchange Commission)

Front

Ethics are defined as:

Back

The discipline dealing with what is good and bad and with moral duty and obligation