Essay about Sample Question

5059 Words Mar 17th, 2013 21 Pages
Sample Question 5312 Fall 2009

1. Corporate governance include concerns about:
A. business ethics and social responsibility.
B. the responsibilities of the board of directors.
C. equitable treatment of stakeholders.
D. disclosures and transparency.
E. all of the above.

2. The most powerful corporate governance legislation to date has been:
A. the Sarbanes-Oxley Act (SOX) of 2002.
B. the creation of the American Institute of Certified Public Accountants.
C. Corporate Ethics Code of 2005.
D. the regulation of inventory management practices by the SEC.

3. The Sarbanes-Oxley Act (SOX) of 2002 does not specifically prohibit an
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C. net income from various geographic areas can be clearly determined.
D. by combining these amounts for each segment, ROI and funds flows for the company as a whole can be determined.

16. For 2006, Skresso Co. reported $3.64 of earnings per share of common stock. During 2007 the firm had a 4% common stock dividend. 2006 earnings per share to be reported in the annual report for 2007 are:
A. $3.79
B. $3.64
C. $3.50
D. $3.49

17. Management's statement of responsibility:
A. usually refers to the company's system of internal controls.
B. emphasizes that the auditors are responsible for the financial statements.
C. includes a disclaimer of responsibility for the level of the P/E ratio of the company's common stock.
D. gives the president of the company an opportunity to explain why profits changed.

18. Which of the following is the proper paragraph sequence for an independent Auditor's Report?
A. Scope, introduction, opinion.
B. Introduction, scope, opinion.
C. Opinion, scope, summary.
D. Introduction, opinion, scope.

19. A firm's independent auditors have the responsibility to:
A. assess the firm's accounting policies.
B. ascertain the firm's profit potential.
C. uncover all fraudulent activities.
D. assess management's discussion and analysis.

20. The independent auditors' report usually:
A. presents a "clean bill of health" for the company.

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