Ferg Acctg Quiz 2 (9/20/19) 50 Q (BR 7, 9, 10, 11, 12)

What has technology done to the accounting process?

• Simplified it

• Eliminated it

• Made it harder

• Had no effect

Dan's organization stores their software applications and other information on a group of external computers known as virtual network servers. Employees often refer to this storage space as the _____.

• cloud

• hub

• virtual private network

• virtual machine

Ethics are defined as _____.

• the discipline dealing with what is good and bad and with moral duty and obligation

• established legal code for particular business practices

• the ability to define legal guidelines for your company

• the discipline that deals with decision making

Bob is the CEO of ABC Hydraulics. Bob is committed to ethical business practices. He ensures that his investors are kept well-informed of the state of the company. As part of his commitment to transparency and ethical practices, he prefers that the top level executives don't see the inner workings of the company's financials so that they aren't tempted to try to defraud the company by embezzling. Is this complying with SOX (Sarbanes-Oxley Act)?

• No, SOX mandates that top level executives must certify that financial information is accurate.

• Yes, SOX doesn't regulate anything mentioned in the above scenario.

• Yes, SOX is only concerned with the penalties for noncompliance.

• No, SOX demands that the CEO outsource the financials to a trusted confidant.

Which law was enacted as a direct result of the unethical financial practices of both Enron and Arthur Andersen?

• SOX (Sarbanes-Oxley Act)

• FASB (Financial Administration Systems Board)

• IFSB (International Financial Systems Board)

• SEC (Securities & Exchange Commission)

Who investigated Arthur Andersen and Enron?

• SEC (Securities & Exchange Commission)

• FASB (Financial Administration Systems Board)

• GAAP (Government Administrative Action Protocol)

• IFSB (International Financial Systems Board)

When preparing a financial statement, which document must be completed first?

• Income statement

• Statement of retained earnings

• Balance sheet

• Statement of cash flow

What are the entries called that close temporary accounts?

• Closing entries

• Adjusting entries

• Ledgers

• Journals

How many steps are in the accounting cycle?

• 10

• 3

• 7

• 9

How many basic accounting principles make up GAAP?

• 10

• 4

• 7

• 18