Explore BrainMass
Share

Accounting Questions Pertaining to the CPA

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

A. Which of the following is not a purpose of the Sarbanes-Oxley Act?
1. Regulate the auditors of public companies
2. Ensure the adherence of relevant laws and regulations
3. Enhance corporate reporting and disclosure
4. Clarify sound corporate governance
I would said that the answer here is 3 - corporate reporting and disclosure

B. In most jurisdictions, a corporation's principal officers are
1. Appointed by the board of directors
2. Appointed by the chief executive officer
3. Appointed by the company stakeholders
4. Elected by the company shareholders
I would said that the answer is 2 - chief executive officers

C.A database has three record types: 1) for supplier, a type that contains a unique supplier number, a supplier name, and a supplier address; 2) for parts, a type that contains a unique part number, a part name, a description, and a location; and 3) for purchases, a type that contains a unique supplier number referencing the supplier number in the supplier record, a part number referencing the part number in the part record, and a quantity. This database has a
1. Relational structure.
2. Network structure.
3. Hierarchical structure.
4. Single flat file structure.
The answer is 4 - hierarchical structure

D. Hardware controls usually are those built into the equipment by the manufacturer. One such control, an echo check, is best described as
1. A component that signals the control unit that an operation has been performed.
2. Two units that provide read-after-write and dual-read capabilities.
3. Double wiring of the CPU and peripheral equipment to prevent malfunctioning.
4. A device that prevents more than one peripheral unit from communicating with the CPU at the same time.
I would said the answer is 1

E. One of the measures economists and economic policy makers use to gauge a nation ' s economic growth is to calculate the change in the
1. Real per capita output.
2. Total wages.
3. General price level.
4. Money supply.
The answer is 1

F. The costs of the use of a resource for the production of one good rather than another are
1. Economic costs
2. Fixed costs
3. Historical costs
4. Opportunity costs
I would said the answer is D

G. Carlton Bank has an increase in reserves of $1,000,000. If the reserve ratio is 10%, by what amount may Carlton increase its demand deposits?
1.. $ 100,000
2. $ 900,000
3. $ 1,000,000
4. $ 10,000,000
Answer 4

© BrainMass Inc. brainmass.com October 25, 2018, 8:08 am ad1c9bdddf
https://brainmass.com/business/accounting/accounting-questions-pertaining-cpa-527782

Solution Preview

A. Which of the following is not a purpose of the Sarbanes-Oxley Act?
1. Regulate the auditors of public companies
2. Ensure the adherence of relevant laws and regulations
3. Enhance corporate reporting and disclosure
4. Clarify sound corporate governance
I would said that the answer here is 3 - corporate reporting and disclosure -- This is not correct. SOX was not designed to verify that companies are adhering to laws and regulations. That would be a primary objective of GAAP and provisions set forth by the FASB. SOX is designed to monitor corporate governance, auditor activity, and internal controls. It was never designed as a watchdog for accounting regulations.

B. In most jurisdictions, a corporation's principal officers are
1. Appointed by the board of directors
2. Appointed by the chief executive officer
3. Appointed by the company stakeholders
4. Elected by the company shareholders
I would said that the answer is 2 ...

Solution Summary

This solution provides the correct answers with explanations to the CPA exam practice questions listed. Includes 3 references.

$2.19
See Also This Related BrainMass Solution

Illinois Accounting Code

Code of Ethics Paper

Perform an Internet search for your state's accounting code of ethics. Prepare an evaluation of the code. Answer the following questions in your evaluation:

a. Does your state(Illinois) provide for accountant client privilege?
b. What is your state's position on accounting work product?
c. What are at least three code violations that may result in criminal and/or civil accountant liabilities?
d. How has the Sarbanes-Oxley Act impacted the professional and ethical standards of accountants? Explain.

View Full Posting Details