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Accounting I HN 2.02

Total questions: 22

Worksheet time: 11mins

Name
Class
Date
1.

Lisa is applying for a position in a small insurance agency. The company wants to hire an individual that can convert its manual accounting system to a computerized system. She listed on her application that she has an accounting degree as well as an emphasis in computerized systems. These qualifications represent which type of skills?

a)

basic skills

b)

workplace skills

c)

foundation skills

d)

communication skills

2.

Jason demonstrates accuracy and truthfulness when he works with his accounting clients. This is an example of which key principle for ethics in accounting?

a)

competence

b)

confidentiality

c)

independence

d)

integrity

3.

Mary has applied for a position as an accounting clerk for a local company. She listed as her qualifications that she is a problem-solver and needs little direction to complete assigned tasks. These are classified as which type of skills?

a)

21st Century skills

b)

workplace skills

c)

foundation skills

d)

communication skills

4.

John has applied for a position as chief financial officer for a Fortune 500 company. He listed as his qualifications that he is a problem-solver, has the ability to plan, and can resolve issues. These are classified as which skills?

a)

21st Century skills

b)

workplace skills

c)

foundation skills

d)

communication skills

5.

Jamie is an accountant. She knows that she is expected to produce accurate financial reports from her audit. She knows when she submits her report to her superiors, her friend will suffer consequences for misappropriation of funds. Jamie submits an accurate report and follows which key principle for ethics in accounting?

a)

competence

b)

confidentiality

c)

materiality

d)

objectivity

6.

Brian is an accountant in a local firm. He submits an accounting report to his manager that suggests an action that will ultimately benefit him monetarily. Which key principle for ethics in accounting has Brian violated?

a)

competence

b)

confidentiality

c)

independence

d)

materiality

7.

Bob Martin, CPA, delivers training workshops for CPA exam candidates. In acquiring resources for his workshops, he offers each candidate $100 to provide him information on questions from the exam. Which specific rule of conduct is Martin violating?

a)

Advertising and Other Forms of Solicitation

b)

Acts Discreditable

c)

Contingent Fees

d)

Independence

8.

Daniel Davis, CPA, only prepares tax returns in his business. He is asked to prepare an audit for Watauga Medical Center. Davis refuses to accept the engagement based on his past experience. Which general standard is being followed?

a)

Due Professional Care

b)

Sufficient Relevant Data

c)

Professional Competence

d)

Planning and Supervision

9.

Grace Associates, a CPA firm, is preparing an audit for GWM Corporation. Grace discovers that the financial statements have been intentionally altered to reflect a higher net income. To complete the audit quickly, Grace decides to leave this matter out of the audit report. Which specific rule of conduct does Grace violate?

a)

Confidential Client Information

b)

Contingent Fees

c)

Dependent

d)

Integrity and Objectivity

10.

Steven demonstrated his ability to work with everyone in the department at Zapps Bank, including a very shy clerk, an annoying CPA, and a very temperamental supervisor. This is an example of which twenty-first-century skill?

a)

interpersonal

b)

resources

c)

systems

d)

technology

11.

Victoria prepared a presentation to accurately share data and pertinent information regarding her company's financial situation for a stockholders' annual meeting. She demonstrated which type of 21st Century skill?

a)

communication

b)

interpersonal

c)

self - directional

d)

problem - solving

12.

Johnson Associates, a CPA firm, has received an order from a judge to provide copies of Mark Tate's tax return. The firm sends the copies to the court without contacting Mr. Tate for permission to release the information. Which specific rule of conduct is Johnson Associates following?

a)

Acts Discreditable

b)

Confidential Client Information

c)

Contingent Fees

d)

Independence

13.

Joseph Miller, CPA, is preparing an audit for LRK Merchandising. During the audit year, the finance officer for LRK was terminated and charged with embezzlement. Because the court has yet to hear the case and the finance officer is a close friend of Miller, he chooses to exclude information regarding the case in the audit report. Which specific rule of conduct does Miller violate?

a)

Confidential Client Information

b)

Contingent Fees

c)

Dependent

d)

Integrity and Objectivity

14.

Maria is careful to avoid discussing her accounting clients’ information with other people. This is an example of which key principle for ethics in accounting?

a)

competence

b)

confidentiality

c)

independence

d)

objectivity

15.

Aneshia prepared an electronic spreadsheet, a flyer, and developed a web page. Which workplace skill did she exhibit?

a)

information

b)

interpersonal

c)

systems

d)

technology

16.

Buck Dollar recently completed his CPA certification and is opening an office. He wants the business to be known as $AV-U-BUCK$. Which specific rule of conduct does this violate?

a)

Independence

b)

Commissions and Referral Fees

c)

Contingent Fees

d)

Form of Organization and Name

17.

Smith CPA Firm has accepted Tough Tire Company as an audit client. Tom Smith, owner of Smith CPA Firm, is the son of Michael Smith, owner of Tough Tire Company. Which specific rule of conduct has Smith CPA Firm most likely violated?

a)

Acts Discreditable

b)

Confidential Client Agreement

c)

Contingent Fees

d)

Independence

18.

Susie is a CPA and her brother, Todd, is an accounting software developer for Balance Your Books Software. Susie receives 10% of the sales every time one of her audit clients purchases the software. Which category of conduct is being violated?

a)

Independence

b)

Confidential Client Information

c)

Commissions and Referral Fees

d)

Advertising and Other Forms of Solicitation

19.

Bill Carpenter, a CPA, is the Western region board member for NC FBLA. Bill's firm, Carpenter Associates, has been asked to prepare the audit for NC FBLA, and has asked that Bill be the lead auditor for the job. What specific rule of conduct will prevent Bill from accepting the offer?

a)

Advertising and Other Forms of Solicitation

b)

Commission and Referral Fees

c)

Confidential Client Information

d)

Independence

20.

Jackson Company, a CPA firm, prepares the audit for Home Fashions, Inc. Home Fashions failed to pay Jackson Company for the prior year’s audit. Jackson Company refuses to begin the current year audit until the balance due is paid. Which category of conduct is Jackson Company following?

a)

Independence

b)

Contingent

c)

Scope and Nature of Services

d)

Confidential Client Information

21.

Slim Stanley, CPA, has failed to complete his personal income tax returns for the past five years. Which specific rule of conduct has Slim violated?

a)

Acts Discreditable

b)

Confidential Client Agreement

c)

Independence

d)

Scope and Nature of Services

22.

Northwest CPAs placed a sign containing the following text outside of its office: “ALWAYS A REFUND WITH US! NEVER PAY TAXES AGAIN!” Which category of conduct did Northwest CPAs violate?

a)

Contingent Fees

b)

Commissions and Referral Fees

c)

Forms of Organization and Name

d)

Advertising and Other Forms of Solicitation