1-10

Question 1

True or False: Managerial Accounting does not need to follow GAAP standards.

Answer 1

TRUE

Question 2

True or False: Financial Accounting is primarily used by the internal parties of a business

Answer 2

FALSE ;

Financial = External

Managerial = Internal

Question 3

Unqualified Opinion

Answer 3

Financial statements are prepared in accordance with GAAP

Question 4

Qualified Opinion

Answer 4

Company did not meet GAAP standards

Question 5

Adverse Opinion

Answer 5

The Financial Info. is Misrepresented

Question 6

SOX Act

Answer 6

Created for accountants to follow to prevent fraud

Question 7

International Accounting Standards Board (IASB)

Answer 7

One global accounting set of regulations

Question 8

Income Statement

Answer 8

Shows profitability over a period of time

Question 9

Statement of Stockholder’s Equity

Answer 9

Shows changes to equity over a period of time (Due to investments and distributions)

Question 10

Balance Sheet

Answer 10

Summary of the Company’s Assets, Liabilities, and Equity at a specific point in time