Question

TRUE AND FALSE 9. The three steps in the accounting process are analyze, journalize and post? True False 10. Ethics are more important in accounting than any other profession? True False 11. Relevance means that financial information matches what really happened; the information is factual. True False 12. Congress passed the Sarbanes-Oxley Act to reduce unethical behavior and decrease likelihood of future corporate scandals. True False 13. The primary accounting standards-setting body in the United States is the Financial Accounting Standards Board (FASB) True False 14. Accountants prepare, but do not interpret, financial reports. True False

Answer 1

9 FALSE

10 FALSE

11 FALSE

12 TRUE

13 TRUE

14 FALSE

EXPLANATION

9 THE THREE STEPS IN THE ACCOUNTING PROCESS ARE IDENTIFICATION, RECORDING AND COMMUNICATION

10 IN EVERY PROFFESSION ETHICS ARE VERY IMPORTANT AND SHOULD BE FOLLOWED REGARDLESS OF ANY FIELD OR ACCOUNTING

11 . Relevance is associated with information that is timely, useful, has predictive value, and is going to make a difference to a decision maker.

12 The Sarbanes-Oxley Act of 2002 is a law the U.S. Congress passed on July 30 of that year to help protect investors from fraudulent financial reporting by corporations

13 The Financial Accounting Standards Board has the authority to establish and interpret generally accepted accounting principles (GAAP) in the United States for public and private companies and nonprofit organizations.

14 ACCOUNTANTS NEED TO DO BOTH PREPARE AND ANALYSE