Accounting 1B - Unit 7 Test Review Flashcards


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1

Represent the difference between what is right and wrong

Ethics

2

Attempting to influence a person of authority by offering something of value is considered a

Bribe

3

The Financial Accounting Standards Board oversees

GAAP

4

Ethical obligations to society and the environment

Social responsibility

5

The Securities and Exchange Commission is the ____ authority requiring publicly traded companies to submit accurate financials.

ultimate

6

Which organization represents the main authority to promote investor confidence by ensuring that publicly traded companies provide accurate financial information?

SEC

7

Buying and selling securities also means to

trade

8

State and local governments are also considered

municipalities

9

Municipalities are allowed to sell _____ to fund projects.

bonds

10

The shareholder’s equity and retained earnings statement include information about a company’s

stock

11

_____ is the trading of securities based on non-public information. This is illegal.

Insider trading

12

_____ is a plan to reorganize debt by eliminating or reducing the amount owed to creditors and shareholders.

Bankruptcy

13

Auditing firms have a duty to independently review financials to prevent and minimize

fraud

14

Which entity has a duty to independently review financials to prevent and minimize fraud?

auditing firms

15

Refers to interfering with an investigation

Obstruction of justice

16

The SEC can bring _____ charges against the entities who commit fraud.

criminal

17

The Sarbanes-Oxley Act of 2002 provided additional laws and regulations for ________ traded U.S. companies

publicly

18

The Sarbanes-Oxley Act of 2002 provided

additional laws and regulations for publicly traded U.S. companies

19

The balance sheet for governmental agencies _____ corporate balance sheets.

is similar to

20

IFRS is _____ across the world.

widely used