Test Your Knowledge Every Week!


Accounting Quiz

Accountants are lifelong students. The weekly quizzes are open
to everyone in the wonderful field of accounting, business
and the study of accounting. Good luck!

This week's quiz brought to you by:
Professor Charlene Abendroth
California State University East Bay
Hayward, California



Visit Quiz Archives/See Past Winners


1 - An accountant's primary responsibility is to the:
Securities and Exchange Commission
Internal Revenue Service
management
investing public

2 - The SEC requires:
all companies to be audited.
all publicly traded companies to be audited.
all privately held companies to be audited.
all not-for-profit entities to be audited.

3 - Formalized rules and standards that describe what a company expects of its employees are referred to as a(an):
operational audit
external audit
code of ethics
strategic plan

4 - What is the most important factor in encouraging employees to observe ethical guidelines?
Management example
Internal controls
External audit
Internal audit

5 - What is the primary fiduciary obligation of the board of directors?
maximize profits for the company
provide high executive compensation
safeguard the interests of the company’s stakeholders
meet Wall Street’s expectations

6 - Who determines if a person can practice as a CPA?
AICPA
SEC
PCAOB
State Board of Accountancy

7 - To whom do the codes of professional conduct apply?
Only CPAs that audit.
"CPAs in public accounting, doing auditing and taxation."
"CPAs in industry, government, and education."
"CPAs in public accounting, industry, government, and education."

8 - Auditors cannot audit financial statements they have prepared because:
it would reduce jobs in accounting.
it would be a conflict of interest and violates ethical standards.
it would not eliminate errors in the financial statements.
the IRS prohibits it.

9 - Earnings management is:
acceptable if the auditor doesn't know about it.
acceptable if the SEC doesn't know about it.
acceptable as long as GAAP has not been violated.
never acceptable.

10 - "When an accounting student is interviewing for a job,"
acceptance is not effective until a contract is signed.
students should accept all offers and then decide which firm to join.
students should demand as much money as possible.
"once a job offer is accepted in any manner, the student should not consider other job offers."

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