Financial reporting skousen

CAPITAL LETTERS ONLY in ALL THE ITEMS OKAY.

The overall objective of financial reporting is to provide information

a. that is useful for decision making.

b. about an enterprise's assets, liabilities, and owners' equity.

c. about an enterprise's financial performance during a period.

d. that allows owners to assess management's performance.

Which of the following statements is not normally an objective of financial reporting?

a. To provide information about an entity's assets and claims against those assets.

b. To provide information that is useful in assessing an entity's sources and uses of cash.

c. To provide information that is useful in lending and investing decisions.

d. To provide information about an entity's liquidation value.

Financial accounting is the area of accounting that emphasizes reporting to

a. management.

b. regulatory bodies.

c. internal auditors.

d. creditors and investors.

Management accounting is the area of accounting that emphasizes

a. reporting financial information to external users.

b. reporting to the SEC.

c. combining accounting knowledge with an expertise in data processing.

d. developing accounting information for use within a company.

The responsibility to review the work of the accountants and issue opinions as to the fairness of the financial

statements rests with

a. the external auditor.

b. the board of directors.

c. the internal auditors.

d. management.

As independent (or external) auditors, CPAs are primarily responsible for

a. preparing financial statements in conformity with GAAP.

b. certifying the accuracy of financial statements.

c. expressing an opinion as to the fairness of financial

Which of the following is an internal user of a company's financial information?

a. Board of directors.

b. Stockholders in the company.

c. Holders of the company's bonds.

d. Creditors with long-term contracts with the company.

Prior to 1973, generally accepted accounting principles were established

a. by the Financial Accounting Foundation.

b. by the Securities and Exchange Commission.

c. under the direction of the American Institute of Certified Public Accountants.

d. by the individual states.

Members of the Financial Accounting Standards Board are appointed by the

a. American Accounting Association.

b. Financial Accounting Foundation.

c. Securities and Exchange Commission.

d. American Institute of Certified Public Accountants.

The Financial Accounting Foundation

a. oversees the operations of the AICPA.

b. oversees the operations of the FASB.

c. oversees the AAA.

d. oversees the financial reporting arm of the SEC.