WALL STREET PREP- ACCOUNTING CRASH
COURSE EXAM QUESTIONS & ANSWERS RATED
100% CORRECT
1. What is
Accounting is the language of business; it is a standard set of rules for
Account- ing?
measuring a company's financial performance.
Assessing a company's financial performance is important
for: The firm's officers (managers and employees)
Investors
Lenders
General public
Standard financial statements serve as a "yardstick" of communicating
financial performance to the general public.
2. Why is
Account- ing Enables managers to make corporate decisions
Important? Enables the general public to make investment decisions
3. Who Uses Used by a variety of organizations - from the federal government to non-
Ac- profit organizations to small businesses to corporations
counting? We will discuss accounting rules as they pertain to publicly-traded compan
4. Accounting
Reg- ulations 5. An Overview of the SEC
1/
92
,WALL STREET PREP- ACCOUNTING CRASH
COURSE EXAM QUESTIONS & ANSWERS RATED
100% CORRECT
Accounting attempts to
standardize financial
information and follows rules
and regulations
These rules are called
Generally Accepted Accounting
Principles (GAAP)
In the US, the Securities and
Exchange Commission (SEC)
authorizes the Financial
Accounting Standards Board
(FASB) to determine
accounting rules
GAAP comes from the
Statements of Financial
Accounting Standards
(SFAS) issued by the
FASB
A US federal agency
established by the US
Congress in 1934
Primary mission is "to protect
investors and maintain the
integrity of the securities
2/
92
,WALL STREET PREP- ACCOUNTING CRASH
COURSE EXAM QUESTIONS & ANSWERS RATED
100% CORRECT
markets"
Division of Corporate Finance oversees FASB
6. An Overview Established in 1973 as an independent body to carry out the function
of FASB of codifying accounting standards on the behalf of the SEC
Composed of seven full-time members appointed for five years by the
Financial Account Foundation (FAF)
Decisions are influenced by:
7. International Over 100 countries, including the EU, UK, Canada, Australia, and Russia,
Fi- nancial have adopted a unified set of international accounting standards
Report- ing (IFRS)
Standards
Although we have seen unprecedented convergence over the last few
(IFRS)
years between US GAAP and IFRS, some differences remain
3/
92
,WALL STREET PREP- ACCOUNTING CRASH
COURSE EXAM QUESTIONS & ANSWERS RATED
100% CORRECT
8. A company is considered a separate "living" enterprise, apart from
its owners In other words, a corporation is a "fictional" being
4/
92
COURSE EXAM QUESTIONS & ANSWERS RATED
100% CORRECT
1. What is
Accounting is the language of business; it is a standard set of rules for
Account- ing?
measuring a company's financial performance.
Assessing a company's financial performance is important
for: The firm's officers (managers and employees)
Investors
Lenders
General public
Standard financial statements serve as a "yardstick" of communicating
financial performance to the general public.
2. Why is
Account- ing Enables managers to make corporate decisions
Important? Enables the general public to make investment decisions
3. Who Uses Used by a variety of organizations - from the federal government to non-
Ac- profit organizations to small businesses to corporations
counting? We will discuss accounting rules as they pertain to publicly-traded compan
4. Accounting
Reg- ulations 5. An Overview of the SEC
1/
92
,WALL STREET PREP- ACCOUNTING CRASH
COURSE EXAM QUESTIONS & ANSWERS RATED
100% CORRECT
Accounting attempts to
standardize financial
information and follows rules
and regulations
These rules are called
Generally Accepted Accounting
Principles (GAAP)
In the US, the Securities and
Exchange Commission (SEC)
authorizes the Financial
Accounting Standards Board
(FASB) to determine
accounting rules
GAAP comes from the
Statements of Financial
Accounting Standards
(SFAS) issued by the
FASB
A US federal agency
established by the US
Congress in 1934
Primary mission is "to protect
investors and maintain the
integrity of the securities
2/
92
,WALL STREET PREP- ACCOUNTING CRASH
COURSE EXAM QUESTIONS & ANSWERS RATED
100% CORRECT
markets"
Division of Corporate Finance oversees FASB
6. An Overview Established in 1973 as an independent body to carry out the function
of FASB of codifying accounting standards on the behalf of the SEC
Composed of seven full-time members appointed for five years by the
Financial Account Foundation (FAF)
Decisions are influenced by:
7. International Over 100 countries, including the EU, UK, Canada, Australia, and Russia,
Fi- nancial have adopted a unified set of international accounting standards
Report- ing (IFRS)
Standards
Although we have seen unprecedented convergence over the last few
(IFRS)
years between US GAAP and IFRS, some differences remain
3/
92
,WALL STREET PREP- ACCOUNTING CRASH
COURSE EXAM QUESTIONS & ANSWERS RATED
100% CORRECT
8. A company is considered a separate "living" enterprise, apart from
its owners In other words, a corporation is a "fictional" being
4/
92
