Reference no: EM132552694

Question 1. Which two actions do external auditors perform to assist in maintaining the integrity of financial statements?

a. They issue opinions about the reliability of an organizations internal controls

b. They approve significant financial transactions to ensure that they are consistent with the company's code of ethics

c. They examine an organizations financial statements to determine if they are prepared in accordance with generally accepted Accounting principles (GAAP)

d. They perform the initial accounting for various transactions

Question 2. What are two stipulations the U.S. Securities and Exchange Commission (SEC) requires to ensure the integrity of financial information?

a. All accounting personnel of public companies must meet certain accreditation and training requirements

b. Public companies must meet certain financial performance requirements in order to sell stock through securities exchange

c. All public companies must file detailed periodic financial reports that include audited financial statements

d. Companies that issue new debt or stock securities must submit a registration statement for approval

Question 3. What is a significant benefit of management accounting?

a. It permits the management of a company to spend less time and attention on detailed data generated by the businesses

b. It presents a view for outside stakeholders of how a company performs in relations to its competitors

c. It presents the management of a company with detailed data that allows them to make better decisions.

d. It permits a company's competitors to have access to detailed data about another company's business strategies

Question 4. How do financial accounting and management accounting differ?

a. Financial accounting focusses on providing financial and nonfinancial information to users inside the business whereas management accounting focuses on providing financial information to users outside the business.

b. Financial accounting focusses on providing nonfinancial information to users outside the business whereas management accounting focuses on providing financial information to users inside the business.

c. Financial accounting focusses on providing nonfinancial information to users inside the business whereas management accounting focuses on providing nonfinancial information to users inside and outside of the business.

d. Financial accounting focusses on providing financial information to users inside and outside the business whereas management accounting focuses on providing financial and non-financial information to users inside the business.

Question 5. What cost-volume profit analysis used to evaluate?

a. Supplier volume

b. Consumer confidence

c. Stock price

d. Revenue and profits