GAAP is the accounting profession's rule-setting body. - <<ANSWER>>False
Generally accepted accounting principles are authorized by the Financial Accounting Standards Board
(FASB). - <<ANSWER>>True
The Sarbanes-Oxley Act of 2002 established the Public Company Accounting Oversight Board (PCAOB)
which is a not-for-profit corporation that oversees auditors of public corporations. -
<<ANSWER>>True
The Sarbanes-Oxley Act of 2002 was passed to eliminate many of the disclosure and conflict-of-interest
problems of corporations. - <<ANSWER>>True
,The Sarbanes-Oxley Act of 2002 established the Private Company Accounting Oversight Board (PCAOB)
which is a for-profit corporation that oversees CEOs of public corporations. -
<< ANSWER>>False
The McCain-Feingold Act of 2002 was passed to eliminate many of the disclosure and conflict-of-interest
problems of corporations. - <<ANSWER>>False
Publicly owned corporations are those which are financed by the proceeds from the treasury securities. -
<<ANSWER >>False
Publicly owned corporations with more than $5 million assets are required by the Securities and
Exchange Commission (SEC) and individual state securities commissions to provide their stockholders
with an annual stockholders' report. - <<ANSWER>>True
The president's letter, the first component of the stockholders' report, is the primary communication
from management to a firm's employees. - <<ANSWER>>False
Common stock dividends paid to stockholders is equal to the earnings available for common
stockholders divided by the number of shares of common stock outstanding. -
<<ANSWER>>False
The income statement is a financial summary of a firm's operating results during a specified period while
the balance sheet is a summary statement of a firm's financial position at a given point in time. -
<<ANSWER>>True
, The common stock entry in balance sheet is the par value of common stock .-
<<ANSWER>>True
Paid-in capital in excess of par represents a firm's book value received from the original sale of common
stock. - << ANSWER>>False
Earnings per share represents amount earned during the period on each outstanding share of common
stock. - <<ANSWER>>True
Net fixed assets represent the difference between gross fixed assets and accumulated depreciation of
fixed assets. - <<ANSWER>>True
Earnings per share results from dividing earnings available for common stockholders by the number of
shares of common stock authorized. - <<ANSWER>>False
Retained earnings represent the cumulative total of all earnings, net of dividends, that have been
retained and reinvested in the firm since its inception. - <<ANSWER>>True
The balance sheet is a statement which balances a firm's assets (what it owns) against its debt (what it
owes) or its equity (what is provided by owners). - <<ANSWER>>True
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nurseking. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
