1.

Which of the following situations should use financial accounting rather than managerial accounting ?

Preparing a cost variance report for a plant manager

Preparing a sales report for a regional manager

A report for the CEO with growth projections for a proposed new product

Preparing financial reports for a loan application with a bank

2.

Why were IFRS developed ?

To prepare financial reports for internal users.

To give investors confidence that financial reports for overseas companies were prepared properly

To establish standards for financial reports required by U.S. government regulators.

To be in compliance with new reporting standards under Sarbanes-Oxley.

3.

When accountants use the term 'internal controls', they are referring to procedures that are put in place to ensure that _____

the company is socially responsible.

they are in compliance with government regulations

business is operated in a way that maximizes revenue.

business is carried out in an orderly, effective, and accurate manner

4.

Which of these is an example of an internal control for D&C Builders Supply Co ?

All of these are correct

Establishing a procedure where all purchases over $50 must be approved by a company officer

Hiring a security firm to patrol the lumber yard at night

Establishing a procedure where company checks can only be signed by one of the owners

5.

Which of the following is a primary objective of internal controls?

Preventing and detecting fraud

Eliminating exposure to financial risk

Maximizing revenue

Eliminating exposure to business risk