SLO-5.2. The act enacted to improve corporate accountability and financial reporting is the OFinancial Services Modernization Act OSecurities Investor Protection Act OSarbanes-Oxley Act OSecurities Exchange Act
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- Explain the impact of accounting standards suchas GAAP and the Sarbanes-Oxley Act on corporateaccounting."To maintain public confidence and trust in the financial reporting of companies" is the purpose of Oa. Sarbanes-Oxley Юв. GAAP Oc. the IRS Od. the FASBThis is the independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements. A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework
- The independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) in the United States is which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkThese are used by the FASB, and it is a set of concepts that guide financial reporting. A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkWhich of the following is the federal, independent agency that provides oversight of public companies to maintain fair representation of company financial activities for investors to make informed decisions? A. IRS (Internal Revenue Service) B. SEC (Securities and Exchange Commission) C. FASB (Financial Accounting Standards Board) D. FDIC (Federal Deposit Insurance Corporation)
- Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by the FASB, which is a set of concepts that guide financial reporting B. generally accepted accounting principles (GAAP) ii. independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) here in the United States C. Securities and Exchange Commission SEC) iii. standards, procedures, and principles companies must follow when preparing their financial statements D. conceptual framework iv. assumes a business will continue to operate in the foreseeable future E. going concern assumption v. independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements F. time period assumption vi. companies can present useful information in shorter time periods such as years, quarters, or monthsDescribe todays financial services marketplace, both depository and nondepository financial institutions.Describe the roles of the following organizations in establishing generally accepted accountingprinciples:a. The FASB b. The AICPA c. The SECFrom which of these organizations can you most easily obtain financial information about publiclyowned companies?
- 11 Which of the following organizations issue standards that focus on both internal and external financial reporting? Multiple Choice Federal Accounting Standards Advisory Board. Governmental Accounting Standards Board. Financial Accounting Standards Board. American Institute of CPAs.E10B. BUSINESS APPLICATION Match the items with the related statements that follow. 1. Safeguards the firm's assets and ensure the reliability of its accounting records. 2. Holds that the chief executive officer, the chief financial officer, and the audi- tors of a public company responsible for fully documenting and certifying the company's system of internal controls. 3. States that it is responsible for estab- lishing and maintaining adequate inter- nal control over financial reporting. a. Management's responsibility b. Section 404 of Sarbanes-Oxley Act c. Independent accountant's audit d. Internal control 4. Includes an examination of internal controls.Please answer the following question and read the discussion question rubric: What is the primary objective of financial accounting, and explain the role of the SEC and FASB?