MBA 700 EXAM 1 EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
What is an unqualified opinion? - ANSWERS-An unqualified
opinion is being issued meaning that no problems worthy of
note were discovered.
Why would an auditor include an explanatory paragraph in
an audit report? - ANSWERS-The auditor feels some
additional explanation is warranted.
Why would an auditor not give an unqualified opinion? -
ANSWERS-Either the auditor was not able to obtain
sufficient evidence during the audit to justify an unqualified
opinion or the auditor discovers the existence of a material
misstatement that does not conform to US GAAP.
, Why is GAAP so important to the capital market system in
the US? - ANSWERS-
Who creates US GAAP? - ANSWERS-the Financial Accounting
Standards Board (FASB)
Define "asset" and give an example of one - ANSWERS-
Future economic benefits owned or controlled by an
organization.
Example: Cash, inventory, land, buildings, and equipment.
Define "liability" and give an example of one - ANSWERS-
Debts of the reporting entity
Example: Salary payable, rent payable, and notes payable
Define "revenue" - ANSWERS-Inflow of cash or receivables
that comes from generating sales.
"The lifeblood of any organization"
ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
What is an unqualified opinion? - ANSWERS-An unqualified
opinion is being issued meaning that no problems worthy of
note were discovered.
Why would an auditor include an explanatory paragraph in
an audit report? - ANSWERS-The auditor feels some
additional explanation is warranted.
Why would an auditor not give an unqualified opinion? -
ANSWERS-Either the auditor was not able to obtain
sufficient evidence during the audit to justify an unqualified
opinion or the auditor discovers the existence of a material
misstatement that does not conform to US GAAP.
, Why is GAAP so important to the capital market system in
the US? - ANSWERS-
Who creates US GAAP? - ANSWERS-the Financial Accounting
Standards Board (FASB)
Define "asset" and give an example of one - ANSWERS-
Future economic benefits owned or controlled by an
organization.
Example: Cash, inventory, land, buildings, and equipment.
Define "liability" and give an example of one - ANSWERS-
Debts of the reporting entity
Example: Salary payable, rent payable, and notes payable
Define "revenue" - ANSWERS-Inflow of cash or receivables
that comes from generating sales.
"The lifeblood of any organization"
