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1. Which of the following statements is MOST ACCURATE regarding financial reporting practices and accounting frameworks, such as U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS)?
A) Organizations that conduct business internationally must adopt IFRS as their accounting framework for financial reporting.
B) The financial reporting practices that a publicly traded company must follow are determined by the company's jurisdiction.
C) U.S. GAAP is a principle-based accounting framework, and IFRS is a rules-based accounting framework.
D) All publicly traded companies are required to adopt either U.S. GAAP or IFRS as their accounting framework.
2. _____________ involves purposeful misreporting of financial information about the organization that is intended to mislead those who read it.
A) Asset misappropriations
B) None of the above
C) Corruption
D) Fraudulent statement
3. Jonathan, a Certified Fraud Examiner (CFE), is tasked with identifying potential indicators of intrusion into his employer's computer network. Which of the following might indicate that the organization's network has been compromised or accessed without authorization?
A) The network is receiving data from a country where one of the organization's suppliers is located.
B) When logging into the computer network, employees receive a reminder to change their log-in passwords before they expire.
C) Users are denied access to network files they do not typically use in their organizational role.
D) Network users are prompted to install unfamiliar software onto their computers.
4. "Anticipate possible losses and omit potential profits", this results in:
A) Asymmetrical accounting
B) Symmetrical accounting
C) Bearing accounting
D) Playing accounting
5. The excess credits (or debits) on the income statement are used to decrease (or increase) the equity account.
A) False
B) True
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: B |
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