INTRODUCTION TO BUSINESS ACCOUNTING - D774
QUIZEZ QUESTIONS WITH VERIFIED ACCURATE
ANSWERS
What is the Sarbanes-Oxley Act?
An act of U.S. Congress passed in 1956, during the height of the Cold War, banning
exchange of financial information with Soviet companies
-A law passed in 2002 that imposed new regulations -on both businesses and
accounting firms
-A set of securities market regulations adopted in 1934 in response to the Great
Depression
-A federal regulation released in 2008 outlawing pump-and-dump schemes - Answers -
A law passed in 2002 that imposed new regulations on both businesses and accounting
firms
What led to the passage of the Dodd-Frank Act?
-Release of computerized computer packages for double-entry accounting
-Bursting of the dot-com bubble caused by investor overoptimism
-Excessive risk-taking by banks and other financial institutions
-Pump-and-dump schemes operated by Wall Street investment banks - Answers -
Excessive risk-taking by banks and other financial institutions
How did the Industrial Revolution lead to increased importance of reliable financial
statements?
-Through the creation of a greater need for investment capital
-Through the invention of computers for better information processing
-Through the legalization of banks and accounting firms
-Through the development of the internet and the need for rapid data transmission -
Answers - Through the creation of a greater need for investment capital
What contributed to the need for accounting in Egypt 5,000 years ago?
-Military defense
-Taxation
-Astronomy
-Architecture - Answers - Taxation
Which U.S. regulatory agency is tasked with making sure that investors have all
necessary information with respect to the risks and returns associated with an
investment in a publicly traded company?
-Sarbanes-Oxley Trading Union (SOTU)
-Federal Trade Commission (FTC)
-Financial Accounting Standards Board (FASB)
-Securities and Exchange Commission (SEC) - Answers - Securities and Exchange
Commission (SEC)
,An act that imposed new regulations on both businesses and accounting firms in 2002 -
Answers - Sarbanes-Oxley
Person who must personally attest to the accuracy and fairness of their company's
financial statements - Answers - CEO
An act that was passed in 2008 because of excessive risk-taking by banks - Answers -
Dodd-Frank
Nation/empire that used a taxation system 5,000 years ago - Answers - Egypt
Country of residence of the monk/mathematician who developed the double-entry
accounting system - Answers - Italy
Major economic event that followed soon after the Stock Market Crash of 1929 -
Answers - Depression
Father of Accounting - Answers - Luca Pacioli
Regulatory agency created to restore confidence in the financial markets after the Great
Stock Market Crash - Answers - SEC
What was significant about the years 2007 and 2008 that led to the passage of the
Dodd-Frank Act?
-They saw the invention of the internet and the initial use of corporate websites.
-They represented the worst financial crisis since the Great Depression.
-They saw record increases in corporate profits, especially in the financial sector.
-They represented the first years in which the Gross Domestic Product (GDP) of
Germany exceeded that of the United States. - Answers - They represented the worst
financial crisis since the Great Depression.
Why is financial reporting by companies highly regulated?
-To reduce the chances that those who use company financial statements are misled
-To make sure that all corporations are incorporated in the correct state
-To prevent companies from hiring employees or doing business with other people from
the same family
-To equalize the number of products and market shares of all companies operating in
the same industry - Answers - To reduce the chances that those who use company
financial statements are misled
Who is the top accounting person in a corporation?
-Chief financial officer (CFO)
-Chief technology officer (CTO)
-Chief sustainability officer (CSO)
-Chief information officer (CIO) - Answers - Chief financial officer (CFO)
, Which equation represents the accounting equation?
-Assets = Liabilities + Owners' Equity
-Liabilities = Assets + Owners' Equity
-Cash = Assets + Liabilities + Owners' Equity
-Owners' Equity = Assets + Liabilities - Answers - Assets = Liabilities + Owners' Equity
Which group establishes financial accounting rules in the United States?
-Public Company Accounting Oversight Board (PCAOB)
-American Institute of Certified Public Accountants (AICPA)
-Financial Accounting Standards Board (FASB)
-Internal Revenue Service (IRS) - Answers - Financial Accounting Standards Board
(FASB)
Who owns the vast majority of publicly traded shares on average in the United States?
-Retail investors
-City, state, and federal governments
-Corporate managers
-Institutional investors - Answers - Institutional investors
Which primary financial statement is based on the accounting equation?
-Statement of budget
-Statement of retained earnings
-Balance sheet
-Income statemen - Answers - Balance sheet
Which primary financial statement contains information about revenue, expenses, and
profitability?
-Balance sheet
-Statement of retained earnings
-Income statement
-Statement of cash flows - Answers - Income Statement
Which type of accounting should be revised based on the competitive needs of the
company?
-Financial accounting
-Compliance accounting
-Double-entry accounting
-Managerial accounting - Answers - Managerial accounting
Why are investors and creditors the two key groups of users of financial accounting
data?
-The financial statements contain information not available to workers, customers, or
suppliers.
-The financial statements aid in assessing future cash flows.
-The financial statements are a competitive tool.
QUIZEZ QUESTIONS WITH VERIFIED ACCURATE
ANSWERS
What is the Sarbanes-Oxley Act?
An act of U.S. Congress passed in 1956, during the height of the Cold War, banning
exchange of financial information with Soviet companies
-A law passed in 2002 that imposed new regulations -on both businesses and
accounting firms
-A set of securities market regulations adopted in 1934 in response to the Great
Depression
-A federal regulation released in 2008 outlawing pump-and-dump schemes - Answers -
A law passed in 2002 that imposed new regulations on both businesses and accounting
firms
What led to the passage of the Dodd-Frank Act?
-Release of computerized computer packages for double-entry accounting
-Bursting of the dot-com bubble caused by investor overoptimism
-Excessive risk-taking by banks and other financial institutions
-Pump-and-dump schemes operated by Wall Street investment banks - Answers -
Excessive risk-taking by banks and other financial institutions
How did the Industrial Revolution lead to increased importance of reliable financial
statements?
-Through the creation of a greater need for investment capital
-Through the invention of computers for better information processing
-Through the legalization of banks and accounting firms
-Through the development of the internet and the need for rapid data transmission -
Answers - Through the creation of a greater need for investment capital
What contributed to the need for accounting in Egypt 5,000 years ago?
-Military defense
-Taxation
-Astronomy
-Architecture - Answers - Taxation
Which U.S. regulatory agency is tasked with making sure that investors have all
necessary information with respect to the risks and returns associated with an
investment in a publicly traded company?
-Sarbanes-Oxley Trading Union (SOTU)
-Federal Trade Commission (FTC)
-Financial Accounting Standards Board (FASB)
-Securities and Exchange Commission (SEC) - Answers - Securities and Exchange
Commission (SEC)
,An act that imposed new regulations on both businesses and accounting firms in 2002 -
Answers - Sarbanes-Oxley
Person who must personally attest to the accuracy and fairness of their company's
financial statements - Answers - CEO
An act that was passed in 2008 because of excessive risk-taking by banks - Answers -
Dodd-Frank
Nation/empire that used a taxation system 5,000 years ago - Answers - Egypt
Country of residence of the monk/mathematician who developed the double-entry
accounting system - Answers - Italy
Major economic event that followed soon after the Stock Market Crash of 1929 -
Answers - Depression
Father of Accounting - Answers - Luca Pacioli
Regulatory agency created to restore confidence in the financial markets after the Great
Stock Market Crash - Answers - SEC
What was significant about the years 2007 and 2008 that led to the passage of the
Dodd-Frank Act?
-They saw the invention of the internet and the initial use of corporate websites.
-They represented the worst financial crisis since the Great Depression.
-They saw record increases in corporate profits, especially in the financial sector.
-They represented the first years in which the Gross Domestic Product (GDP) of
Germany exceeded that of the United States. - Answers - They represented the worst
financial crisis since the Great Depression.
Why is financial reporting by companies highly regulated?
-To reduce the chances that those who use company financial statements are misled
-To make sure that all corporations are incorporated in the correct state
-To prevent companies from hiring employees or doing business with other people from
the same family
-To equalize the number of products and market shares of all companies operating in
the same industry - Answers - To reduce the chances that those who use company
financial statements are misled
Who is the top accounting person in a corporation?
-Chief financial officer (CFO)
-Chief technology officer (CTO)
-Chief sustainability officer (CSO)
-Chief information officer (CIO) - Answers - Chief financial officer (CFO)
, Which equation represents the accounting equation?
-Assets = Liabilities + Owners' Equity
-Liabilities = Assets + Owners' Equity
-Cash = Assets + Liabilities + Owners' Equity
-Owners' Equity = Assets + Liabilities - Answers - Assets = Liabilities + Owners' Equity
Which group establishes financial accounting rules in the United States?
-Public Company Accounting Oversight Board (PCAOB)
-American Institute of Certified Public Accountants (AICPA)
-Financial Accounting Standards Board (FASB)
-Internal Revenue Service (IRS) - Answers - Financial Accounting Standards Board
(FASB)
Who owns the vast majority of publicly traded shares on average in the United States?
-Retail investors
-City, state, and federal governments
-Corporate managers
-Institutional investors - Answers - Institutional investors
Which primary financial statement is based on the accounting equation?
-Statement of budget
-Statement of retained earnings
-Balance sheet
-Income statemen - Answers - Balance sheet
Which primary financial statement contains information about revenue, expenses, and
profitability?
-Balance sheet
-Statement of retained earnings
-Income statement
-Statement of cash flows - Answers - Income Statement
Which type of accounting should be revised based on the competitive needs of the
company?
-Financial accounting
-Compliance accounting
-Double-entry accounting
-Managerial accounting - Answers - Managerial accounting
Why are investors and creditors the two key groups of users of financial accounting
data?
-The financial statements contain information not available to workers, customers, or
suppliers.
-The financial statements aid in assessing future cash flows.
-The financial statements are a competitive tool.
