E 1.6, E 1.7, E 1.8
conflicts of Ameriberin LOI-3 EXERCISE 1.6 Investment Return You recently invested 515,000 of your savings in a security issued by a large company. The security agreement pays you 8 percent per year and has a maturity three years from the day you purchased it. What is the total cash flow you expect to receive from this investment, separated into the return on your investment and the return of your investment? pearance y that LOI-3 through LOI-5, LOI-7 EXERCISE 1.7 Accounting Terminology Match the terms on the left with the descriptions on the right. Each description should be used only once nd members Term ments in nd Bence Financial accounting Management accounting Financial reporting Financial statements General-purpose assumption Integrity Internal control Public accounting Bookkeeping Description a Statement of financial position (balance sheet), income statement, statement of cash flows. b. The segment of the accounting profession that relates to providing audit, tax, and consulting services to clients. C. The area of accounting that refers to providing information to support external investment and credit decisions d. The procedural aspect of accounting that involves keeping detailed records of business transactions, much of which is done today by computers. e. Procedures and processes within an organization that ensure the integrity of accounting information. 1. A broad term that describes all information provided to external users, including but not limited to financial statements The area of accounting that refers to providing information to support internal management decisions. h. The fact that the same information is provided to various external users, including investors and creditors I. An important quality of accounting information that allows Investors, creditors, management, and other users to rely on the information. hect student quired to and is a ands LOT-6 EXERCISE 1.8 Accounting Organizations Match the organizations on the left with the functions on the right. Each function should be used only one Organization repre Institute of Internal Auditors Securities and Exchange Commission American Institute of CPAS Institute of Management Accountants Financial Accounting Standards Board American Accounting Association Public Company Accounting Oversight Board International Accounting Standards Board Function a. The group that creates and promotes International Financial Reporting Standards (IFRSs). b. Professional association of Certified Public Accountants. c. Organization consisting primarily of accounting educators that encourages improvements in teaching and research d. International organization dedicated to the advancement of internal auditing. e. Private-sector organization that establishes accounting standards. f. The body charged with setting auditing standards for audits of public companies. 9. Organization dedicated to providing members personal and professional development opportunities in the area of management accounting. h. Government agency responsible for financial reporting by publicly held companies
