Acct 505 Quiz Notes Essay

CH 1 | 1 CORRECT | |
Managerial accounting is concerned with: | | | A) | reporting financial information to stockholders. | | | B) | reporting financial information to regulators. | | | C) | providing information for use within the organization. | | | D) | the financial consequences of past activities. | | | | | | Feedback:The correct answer is C:
Managerial accounting is concerned with providing information to managers for use within the organization. | | 2 CORRECT | |
Which of the following statements is not correct? | | | A) | A plan is always expressed in formal quantitative terms. | | | B) | Planning involves establishing goals and specifying how to achieve them. | | | C) | …show more content…
| | | B) | The Act requires that a company's annual report contain an internal control report. | | | C) | The Act establishes severe penalties of as many as 20 years in prison for altering or destroying any documents that may eventually be used in an official proceeding and as many as 10 years in prison for managers who retaliate against a whistle-blower who goes outside the chain of command to report misconduct. | | | D) | The Act places the power to hire, compensate, and terminate the public accounting firm that audits a company's financial reports in the hands of the audit committee. | | | | | | Feedback:The correct answer is A:
The Sarbanes-Oxley Act of 2002 requires that the Chief Executive Officer (CEO) and CFO (rather than the CFO and the Controller) certify in writing that their company's financial statements and accompanying disclosures fairly represent the results of operations. | | 9 CORRECT | |
Which of the following statements about the internal control is not correct? | | | A) | A company uses internal control to provide absolute assurance that its financial reports are reliable, to achieve efficient and effective operations, and to ensure compliance with applicable laws and regulations. | | | B) | The Sarbanes-Oxley Act of 2002 requires that a company's annual report contain an assessment by management of the effectiveness of the company's internal control structure. | | | C) | A preventative internal control

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