1. Managers believe it is important to meet earnings benchmarks. When a number of executives were asked-within the parameters of GAAP-which choices your company might make to hit an earnings target, the most popular choice was to:

Multiple Choice

A. decrease discretionary spending.

B. alter accrual assumptions (such as allowances).

C. postpone taking an accounting charge.

D. draw down on reserves previously set aside.

3. IRS regulations govern the:

Multiple Choice

A. computation of net income for GAAP.

B. computation of net income for tax purposes.

C. computation of gross profit for GAAP.

D. computation of net income for the SEC.

2. With respect to executive compensation, the Dodd-Frank Act requires that shareholders:

Multiple Choice

A. vote on executive compensation at least once every three years.

B. vote on executive compensation every fiscal period.

C. determine the annual executive compensation package for key executives.

D. not discuss any aspects of executive compensation with-non shareholders.