Answer the following statements true (T) or false (F)
1. General accounting principles stem from long-used accounting practices.
2. A sole proprietorship is a business owned by one or more persons.
3. Unlimited liability and separate taxation of the business are advantages of a sole
proprietorship.
4. Understanding generally accepted accounting principles is not necessary to effectively use
and interpret financial statements.
5. The International Accounting Standards board (IASB) has the authority to impose its
standards on companies around the world.
1. TRUE
2. FALSE
3. FALSE
4. FALSE
5. FALSE
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Which of the following is least likely to represent a material weakness in internal control for Flynt Corporation?
A. Flynt Corporation's computer systems were not working properly for two days; consequently, employees needed to do all reconciliations manually. B. Flynt Corporation's CFO was arrested last year for embezzling money from the entity. C. Flynt's audit committee is deemed to be ineffective. D. For the current year, the auditor found a material misstatement in Flynt's sales recognition that was undetected by the internal controls.
The board of directors of Lark Corporation declared a cash dividend of $3.50 per share on 57,000 shares of common stock on June 14, 20x5. The dividend is to be paid on July 15, 20x5, to shareholders of record on July 1, 20x5. The proper entry to be recorded on June 14, 20x5 is, A) Dividends 199,500 Dividends Payable 199,500 B) No journal entry is necessary on this date
C) Dividends 199,500 Retained Earnings 199,500 D) Dividends payable 199,500 Dividends 199,500
Which of the following bodies oversees audits and auditors, and sanctions firms and individuals for violations of laws and regulations?
A. American Accounting Association (AAA). B. Financial Accounting Standards Board (FASB). C. Accounting Principles Board (APB). D. American Institute of Certified Public Accountants (AICPA). E. Public Company Accounting Oversight Board (PCAOB).
What are the four forms of organizational justice?
a. procedural, informational, interactional, and distributive b. distributive, organizational, relational, absolute c. relational, procedural, collegial, managerial d. managerial, interactional, informational, citizen