Accounting > A-Level Question Paper > Accounting_Unit_1_Challenges_Sophia_Answers.docx (All)

Accounting_Unit_1_Challenges_Sophia_Answers.docx

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Unit 1 Challenge 1 Which of the following statements is true regarding the regulation of ethics in accounting?  a.) The Sarbanes-Oxley Act determines the standards of financial reporting for st... ate and local government.  b.) The private sector proposed the Sarbanes-Oxley Act as a way to regulate competition within industries.  c.) The IRS created the Sarbanes-Oxley Act in order to prosecute companies who did not pay taxes.  d.) Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act?  a.) The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct.  b.) The Sarbanes-Oxley Act standardizes accounting practices across all nations.  c.) The Sarbanes-Oxley Act develops and enforces securities laws.  d.) The Sarbanes-Oxley Act requires financial statements to be relevant, reliable and comparable. Which of the following was created by the government in response to unethical behavior by companies such as Enron and WorldCom?  a.) Generally Accepted Accounting Principles  b.) International Financial Reporting Standards  c.) The Sarbanes-Oxley Act  d.) The Financial Accounting Standards Board Financial reporting standards for state and local government are determined by the governing body known as __________, while international standards are compiled in the governing principles known as __________.  a.) FASB; GAO  b.) SEC; GAAP  c.) AICPA; IRS  d.) GASB; IFRS The governing body __________ is responsible for developing the US governing principles known as __________. [Show More]

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