1. Required management to establish adequate internal control structure and annually assess the effectiveness of the control structure.
   1. AICPA
   2. FASB
   3. SOX
   4. IFRS
2. Requires all public companies to register annual financial statements.
   1. FASB
   2. PCAOB
   3. IRS
   4. SEC
3. Information that is capable of making a difference in the decisions of users in their capacity as capital providers is based on
   1. Completeness
   2. Comparability
   3. Relevance
   4. Neutrality
4. All of the following accounts are expenses except for:
   1. Dividends
   2. Depreciation
   3. Insurance
   4. Misc Supplies
5. What determines whether the added value for analysis will be implemented?
   1. Full disclosure principle
   2. Measurement principle
   3. Revenue recognition principle
   4. Cost constraint principle
6. The current value of the AFDA is $2,000. It was determined the estimate of uncollectible accounts is $4,000. What account must you Credit in the adjusting journal entry?
   1. $2,000 to Bad Debt Expense
   2. $2,000 to AFDA
   3. $4,000 to Bad Debt Expense
   4. $4,000 to AFDA
7. Tardis, Co routinely records supply purchases directly to the income statement account. On 12/31 a physical count was performed and a total of $1,000 was estimated to be in storage. Assume all previous closing entries had been appropriately reversed. What account is DR?
   1. Supplies Expense
   2. Supplies
   3. Inventory
   4. PY Accounting Error
8. An insurance was purchased on 1/1 for $1,200 for the year. Assume all monthly entries were posted as required. What is the CR on 6/30?
   1. $200 to Prepaid Insurance
   2. $200 to Insurance Expense
   3. $100 to Prepaid Insurance
   4. $100 to Insurance Expense
9. Bad Wolf Productions purchased property for $100,000. $20,000 of value was assigned to the land. The buildings were assigned a 20-year useful life. Using straight line depreciation. After year 4, assuming all entries were properly recorded, what is the value of Accumulated Depreciation?
   1. 4,000
   2. 5,000
   3. 16,000
   4. 20,000
10. Changing from LIFO to FIFO will result in
    1. Restatement of prior period
    2. Recast of prior period
    3. No change in reporting
    4. Additional disclosures only
11. Rose Tyler recently took over the monthly reporting for David and noticed that the Company has omitted amortizing prepaid insurance for the last 6 months. This will require
    1. Restatement of prior period
    2. Recast of prior period
    3. No change in reporting
    4. Additional disclosures only
12. Calculate EPS given Net Income of $200,000, Preferred Dividend of $40,000, Common Stock Dividend of $30,000. Number of Preferred Shares is 100,000. Number of Common Shares is 200,000.
    1. $1.00
    2. $0.65
    3. $0.80
    4. $1.60
13. The following would be represented as positive cashflow for Operating Activity using the indirect method
    1. Issuance of Debt
    2. Sale of Property
    3. Increase of Accounts Receivable
    4. Depreciation Expense
14. The following would be represented as a negative cashflow for Operating Activity
    1. Loan to subsidiary
    2. Payment of dividend
    3. Increase in Accounts Payable
    4. Increase in Inventories
15. To determine which company has stronger liquidity, you would use the
    1. EPS
    2. Debt to assets
    3. Free Cash Flow
    4. Current Ratio
16. Captain Jacks Cracker Jack has awarded you the $1M prize. You have the option of receiving $750,000 now or $50,000 a year for the next 20 years, starting today. Your financial advisor has guaranteed a 3% rate of return.
    1. Take the $1M
    2. Take the $50,000/year
17. If the Coupon Rate is 10% and the required rate of return on the investment is 5%, this is considered a
    1. Discount
    2. Premium
    3. Par Value
    4. Annuity Due
18. A 5%, semiannual, $1M bond will make the following payments
    1. $50,000/year
    2. $25,000/6 months
    3. $100,000/2years
    4. None
19. Printing Plus, Inc purchases equipment on account for $3,500. The net impact to assets is:
    1. No Change
    2. Increase
    3. Decrease
    4. Not enough information provided
20. On February 23^rd Printing Plus, Inc received cash from a customer for services rendered on January 2nd. The net impact to assets is:
    1. No Change
    2. Increase
    3. Decrease
    4. Not enough information provided
21. On January 23^rd Printing Plus, Inc received cash from a customer when services would be rendered on February 2nd. The net impact to liabilities is:
    1. No Change
    2. Increase
    3. Decrease
    4. Not enough information provided
22. On February 2^nd Printing Plus, Inc paid cash in salaries expense to employees for work performed in January. The net impact to incomes is:
    1. No Change
    2. Increase
    3. Decrease
    4. Not enough information provided
23. All of the following describe the usefulness of the income statement except:
    1. Evaluate past performance
    2. Help asses the risk of uncertainty of achieving future cash flows
    3. Provides information about resources, obligations and equity
    4. Predicting future performance
24. All of the following are limitations of the balance sheet except:
    1. Most assets and liabilities are reported at historical costs
    2. The values cannot be reliably verified
    3. Use of judgements and estimates
    4. Many items of financial value are omitted
25. The Matching Principle states that
    1. The debit must match the credit
    2. The journal entry must match the cash recorded
    3. The revenue must match the period it was earned
    4. The cost must match the period in which revenue was earned