Chapter 08 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

Chapter 08 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

Complete Chapter Questions With Answers

Sample Questions Are Posted Below

1. The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges.
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.08-01 – 08-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.10 – Internal Control

ACCT.AICPA.BB.03 – Legal

ACCT.AICPA.FN.03 – Measurement BUSPROG: Ethics

2. Sarbanes­Oxley’s purpose is to maintain public confidence and trust in the financial reporting of companies.
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.08-01 – 08-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.10 – Internal Control

ACCT.AICPA.BB.03 – Legal

ACCT.AICPA.FN.03 – Measurement BUSPROG: Ethics

3. There are three internal control objectives and they are to safeguard the company’s reputation, ensure accurate financial reports, and ensure compliance with applicable laws.
   1. True
   2. False

ANSWER:                                  False

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.08-01 – 08-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.10 – Internal Control

ACCT.AICPA.BB.03 – Legal

ACCT.AICPA.FN.03 – Measurement BUSPROG: Ethics

4. The Sarbanes-Oxley Act requires that financial statements of all public companies report on management’s conclusions about the effectiveness of the company’s internal control procedures.
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Moderate

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.08-01 – 08-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.10 – Internal Control

ACCT.AICPA.BB.03 – Legal

ACCT.AICPA.FN.03 – Measurement BUSPROG: Ethics

5. Sarbanes-Oxley requires companies to maintain strong and effective internal controls and thus deter fraud and prevent misleading financial statements.
   1. True
   2. False

ANSWER:                                  False

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.08-01 – 08-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.10 – Internal Control

ACCT.AICPA.BB.03 – Legal

ACCT.AICPA.FN.03 – Measurement BUSPROG: Ethics