ACC 460 Final Exam
ACC 460 Final Exam
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1) Determining whether amounts are in conformity with generally accepted accounting principles addresses the proper measurement of assets, liabilities, revenues, and expenses, which includes all of the following EXCEPT the
A. consistency in applying accounting principles.
B. reasonableness of management’s accounting estimates.
C. proper application of valuation principles, such as cost, net reliable value, market value, and present value.
D. reasonableness of management’s accounting policies.
2) The completeness assertion would be violated if
A. unbilled shipments occurred during the period.
B. fictitious sales transactions were included in accounts receivable.
C. the allowance for doubtful accounts was understated.
D. disclosure in the statements of pledged receivables was inadequate.
3) The concept of materiality is defined by the Financial Accounting Standards Board (FASB) in terms of the judgment of the
A. FASB members.
B. auditor.
C. preparer.
D. users.
4) Section 11 of the Securities Act of 1933 uses the term material fact to limit the amount of information required. Under the Act, the standard used to determine an item’s materiality
A. may be found in FASB pronouncements.
B. is the auditor’s professional judgment.
C. has been established by the SEC as a percent of net income or of total assets.
D. is the average prudent investor.
5) Anyone identified to the auditor by name prior to the audit who is the principal recipient of the auditor’s report is a
A. primary beneficiary.
B. third party.
C. foreseen beneficiary.
D. foreseeable party.
6) Individuals or entities the auditor knew or should have known and would rely on the audit report in making business and investment decisions are
A. primary beneficiaries.
B. foreseeable parties.
C. foreseen beneficiaries.
D. third parties.
7) Statements
Copy this link to your browser and download
http://www.finalexamguide.com/ACC-460-Final-Exam-198.htm
1) Determining whether amounts are in conformity with generally accepted accounting principles addresses the proper measurement of assets, liabilities, revenues, and expenses, which includes all of the following EXCEPT the
A. consistency in applying accounting principles.
B. reasonableness of management’s accounting estimates.
C. proper application of valuation principles, such as cost, net reliable value, market value, and present value.
D. reasonableness of management’s accounting policies.
2) The completeness assertion would be violated if
A. unbilled shipments occurred during the period.
B. fictitious sales transactions were included in accounts receivable.
C. the allowance for doubtful accounts was understated.
D. disclosure in the statements of pledged receivables was inadequate.
3) The concept of materiality is defined by the Financial Accounting Standards Board (FASB) in terms of the judgment of the
A. FASB members.
B. auditor.
C. preparer.
D. users.
4) Section 11 of the Securities Act of 1933 uses the term material fact to limit the amount of information required. Under the Act, the standard used to determine an item’s materiality
A. may be found in FASB pronouncements.
B. is the auditor’s professional judgment.
C. has been established by the SEC as a percent of net income or of total assets.
D. is the average prudent investor.
5) Anyone identified to the auditor by name prior to the audit who is the principal recipient of the auditor’s report is a
A. primary beneficiary.
B. third party.
C. foreseen beneficiary.
D. foreseeable party.
6) Individuals or entities the auditor knew or should have known and would rely on the audit report in making business and investment decisions are
A. primary beneficiaries.
B. foreseeable parties.
C. foreseen beneficiaries.
D. third parties.
7) Statements