FAR — Financial Accounting & Reporting — Quiz 88

Questions in this quiz (10)

1. Which of the following best describes fraud in accounting?

   • Unintentional accounting mistake
   • Intentional manipulation of financial information
   • Accurate financial reporting
   • Routine accounting adjustments

2. Which type of fraud involves theft of company assets by employees?

   • Financial statement fraud
   • Asset misappropriation
   • Revenue fraud
   • Expense fraud

3. Which type of fraud involves deliberately misstating financial statements?

   • Asset misappropriation
   • Financial statement fraud
   • Inventory fraud
   • Payroll fraud

4. Which statement best explains the purpose of auditing?

   • Replace accounting records
   • Provide independent assurance of financial accuracy
   • Eliminate all errors
   • Increase profits

5. Which of the following best describes corporate governance?

   • Rules and processes used to direct a company
   • Recording accounting transactions
   • Preparing financial reports
   • Calculating profits

6. Which group oversees management activities?

   • Board of directors
   • Employees
   • Customers
   • Vendors

7. Which of the following best describes audit committee responsibilities?

   • Preparing financial statements
   • Monitoring financial reporting and controls
   • Managing payroll
   • Recording transactions

8. Which law strengthened corporate governance in the U. S.?

   • Sarbanes-Oxley Act
   • Securities Exchange Act
   • Revenue Act
   • Federal Trade Act

9. Which SOX section requires management to evaluate internal controls?

   • Section 201
   • Section 302
   • Section 404
   • Section 501

10. Which of the following best describes ethical behavior in accounting?

    • Following professional standards and integrity
    • Maximizing profits regardless of rules
    • Ignoring regulations
    • Manipulating financial reports