WorksheetsRegulation and Ethics in Accounting 3.3.3
Total questions: 20
Worksheet time: 10mins
Understanding accounting regulations is difficult because _____.
regulations can be set by local, state, or federal government
accounting regulations are purposely vague
all organizations use different accounting standards
every industry has its own set of regulations
What is the purpose of a financial audit?
to define the accounting practices a company should follow
to ensure that a company's accounting records are accurate
to punish accountants for making mistakes
to determine if a company is profitable or not
Which of the following did the Sarbanes-Oxley Act create?
generally accepted accounting principles
the Securities and Exchange Commission
rules for how managers and auditors control and report company finances
rules for appointing CFOs in public companies
What did WorldCom do to try to keep its stock price from falling?
It forced employees to buy company stock.
It created innovative energy trading methods to increase revenue.
It took out loans but did not report them on the company's books.
It falsified accounting entries to make the company appear profitable.
Enron and Tyco failed primarily because they _____.
manipulated accounting procedures
did not follow GAAP
did not provide reports to the SEC
obstructed justice
Susan is an accountant who always makes sure to keep up-to-date on changes in technology, best practices, and regulations. This practice demonstrates which core ethic of accounting?
professional behavior
professional competence
integrity
confidentiality
What can result from a failure to provide accurate financial statements to a bank?
The bank may lose trust in the government.
The bank may fail due to poor planning.
The bank may experience an increase in defaulted loans.
The bank may appear more attractive than it should.
_____ can help protect clients' confidential information.
Identity theft
piracy
licensing infringement
anti-virus software
The practice of _____ is harmful because it can reduce and divert revenues and also threaten the security of accounting systems.
piracy
a code of ethics
firewalls
competitive advantage
In which situation would it be acceptable to disclose a client's confidential information without their permission?
The client's trade association requests the information for a survey of its members.
The Internal Revenue Service requests the information for an audit of the client's tax records.
A close relative of the client requests the information because the client is behaving suspiciously
The client has passed away and his or her will cannot be located.
Publicly held corporations must follow regulations created by the _____.
GAO
GAAP
SEC
GAAS
Which of the following entities creates an annual handbook of accounting principles for governmental entities?
GAAP
SEC
GAO
FASAB
Where would an accountant find an annual handbook of accounting principles for governmental entities?
on the FASAB website
on the GAAS website
on the FASB website
on the SEC website
Which of the following statements is true?
States must require smaller districts and municipalities to follow GAAP.
Some states do not require smaller districts and municipalities to follow GAAP.
States are not allowed to require smaller districts and municipalities to follow GAAP.
States require smaller districts and municipalities to follow local versions of GAAP.
Which of the following is a nickname for the GAO?
regulatory watchdog
public watchdog
congressional watchdog
SEC watchdog
Which of the following actions would be most likely to violate a business code of ethics?
taking a day off from work for a reason that is not an emergency
having a personal conversation with a fellow employee at work
offering to do some of an employee's work for them
using a computer at work to check one's social media accounts
On her way to her cubicle, Penny hears her manager scolding an intern for making a mistake. Penny knows that she was the one who made the mistake, so she goes to the manager and tells the truth. This action shows Penny's _____.
accountability
punctuality
respect for diversity
time management
Alex shows up for a meeting at 9:50, even though the meeting does not begin until 10:00. The first of his co-workers to make it to the meeting does not show up until 10:05. This action shows Alex's _____.
honesty
punctuality
respect for diversity
accountability
David's firm has a high school internship program. In the past, most if its applicants have been from affluent local high schools. David decides to do a presentation at a school in a low-income area to encourage more applicants from that school. This action shows David's _____
accountability
work ethic
respect for diversity
punctuality
Which of the following would most likely be inappropriate to wear to work?
hats or head coverings of any type
clothing in non-neutral colors
shoes with rubber soles
clothing with holes or tears
