FP2 - Final Exam Review Part 2

Carmella plans to put the qualifications of key managers in her business plan. Which section should she include them in?

• Appendices

• Management Plan

• Executive Summary

• Company Description

Which agency oversees the entire auditing industry?

• Securities and Exchange Commission (SEC)

• Financial Accounting Standards Board (FASB)

• Association of International Accountants (AIA)

• Public Company Accounting Oversight Board (PCAOB)

In which section of the business plan will Elena put a copy of her business blueprint?

• Appendix

• Table of Contents

• Executive Summary

• Company Description

What agency was created by the Sarbanes-Oxley Act to audit large publicly traded firms?

• Securities and Exchange Commission (SEC)

• Financial Accounting Standards Board (FASB)

• Association of International Accountants (AIA)

• Public Company Accounting Oversight Board (PCAOB)

The "Management Discussion and Analysis" section of the annual report:

• provides a ten-year summary of financial figures.

• reviews the results of company operations.

• explains what the company sells.

• includes a letter to shareholders.

Which document is least likely to be included in the financial plan component of a business plan?

• credit history

• balance sheet

• income statement

• cash flow statement

Which department maintains records of all business expenses?

• accounting

• communication

• marketing

• production

Which is excluded from the expense section of an income statement?

• FASB (Financial Accounting Standard Board)

• GAAP (General Accepted Accounting Principles)

• PCAOB (Public Company Accounting Oversight Board)

• SEC (Security and Exchange Commission)

The primary purpose of the accounting process in business is to track:

• warehousing needs.

• advertising activities.

• financial transactions.

• production equipment.

Sweet Suzie’s Bakery had yearly sales equal to $85,000 and expenses equal to $122,000. Using these numbers, her accountant determined that the bakery had a net:

• loss of $37,000.

• loss of $207,000.

• income of $37,000.

• income of $207,000.