WorksheetsAccounting Laws and Regulations
Total questions: 10
Worksheet time: 5mins
Which of the following is a standard that defines how accountants record financial transactions?
generally accepted accounting principles
government applied accounting practices
general accounting and auditing procedures
government allowed accounting practices
What organization is responsible for maintaining GAAP?
United States Congress
Financial Accounting Standards Board
Internal Revenue Service
Sarbanes-Oxley Board
After the stock market crash, the government created the _____ to regulate businesses.
Internal Revenue Service
Business Administration Commission
Securities and Exchange Commission
Stock Market Oversight Board
Which of the following is a responsibility of the Securities and Exchange Commission?
collecting taxes from businesses
providing advice on how to run companies more effectively
approving the salaries of CEOs in public companies
enforcing accounting laws and regulations
Which of the following companies was involved in energy and other resource trading?
Enron
WorldCom
Adelphia
Arthur Andersen
How did Enron's management hide the company's debts and losses?
by not following GAAP
by transferring them to subsidiary companies
by issuing company stock shares
by declaring bankruptcy
What was the CEO of Tyco accused of doing?
hiding debt by transferring it to subsidiaries
hiding debt by transferring it to subsidiaries
using company funds to pay for his lavish lifestyle
engaging in insider trading
Why was Arthur Andersen accused of obstructing justice when the SEC started to investigate Enron?
Why was Arthur Andersen accused of obstructing justice when the SEC started to investigate Enron?
They used poor practices to audit Enron's accounting records.
They approved Enron's financial reports
They shredded documents related to their auditing of Enron.
What organization was created by the Sarbanes-Oxley Act?
Public Company Accounting Oversight Board
Securities and Exchange Commission
the auditing review board
Financial Accounting Standards Board
According to most large company CFOs, SOX has _____.
increased fraud
increased investor confidence
decreased company profits
decreased stock prices
