The section of Sarbanes Oxley that requires each annual report filed with the SEC to include an internal control report is:
a. Title I Public Company Accounting Oversight Board
b. Title II Auditor Independence
c. Title III Corporate Responsibility
d. Title IV Enhanced Financial Disclosures
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Q. 2) The bank statement for a checking account normally shows the
a. amounts of deposits to be made.
b. amount of deposits and other credits added during the period.
c. checks written but not yet cashed.
d. amounts to be collected by the bank for the depositor's account.
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Q. 3) Net income flows from ________.
A) the income statement to the statement of changes in shareholders' equity
B) the income statement to the balance sheet
C) the balance sheet to the statement of cash flows
D) the statement of cash flows to the income statement
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Q. 4) Under a perpetual inventory system
a. accounting records continuously disclose the amount of inventory
b. increases in inventory resulting from purchases are debited to Purchases
c. there is no need for a year-end physical count
d. the purchase returns and allowances account is credited when goods are returned to vendors
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Q. 5) Jem's Jewelers reported the following items on its financial statements. Determine the amount of net income. Then calculate the ending balance for retained earnings.
Sales 250,000
Cost of goods sold 57,500
Operating expenses 25,000
Net income ??
Dividends 4,000
Beginning retained earnings 55,500
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Q. 6) The section of Sarbanes Oxley that requires a company's CEO and CFO to certify quarterly and annual reports is:
a. Title I Public Company Accounting Oversight Board
b. Title II Auditor Independence
c. Title III Corporate Responsibility
d. Title IV Enhanced Financial Disclosures
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