Advanced Financial Accounting
Solved Exam Questions
Course Introduction
Advanced Financial Accounting delves into complex accounting concepts and practices beyond the introductory level, emphasizing the preparation and interpretation of financial statements in specialized contexts. The course covers topics such as business combinations, consolidated financial statements, foreign currency transactions, translation of foreign entity financial statements, and partnerships. Students will analyze accounting issues related to mergers and acquisitions, intercompany transactions, and non-controlling interests, as well as examine the regulatory environment and international accounting standards. Through case studies and real-world examples, learners will develop the skills necessary to address challenging accounting problems and make informed financial reporting decisions in a global business environment.
Recommended Textbook
Ethical Obligations and Decision Making in Accounting Text and Cases 4th Edition by
Available Study Resources on Quizplus
8 Chapters
624 Verified Questions
624 Flashcards
Source URL: https://quizplus.com/study-set/2603
Page 2
Steven Mintz
Chapter 1: Ethical Reasoning: Implications for Accounting
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/51867
Sample Questions
Q1) Aristotle believed that __________ always preceded the choice of action.
A)Empathy
B)Due Care
C)Deliberation
D)Loyalty
Answer: C
Q2) Decisions that are made based on the underlying circumstances of a particular matter can be best characterized by:
A)Ethical Collectivism
B)Situational ethics
C)Ethical relativism
D)Judgmental Individualism
Answer: B
Q3) Teleology deals with:
A)Consequences of actions
B)Fairness to others
C)Respecting the rights of others
D)Following prescribed virtue characteristics
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Cognitive Processes and Ethical Decision
Making in Accounting
Available Study Resources on Quizplus for this Chatper
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/51866
Sample Questions
Q1) In stage 5 of Kohlberg's model,ethical reasoning is motivated by:
A)Acting in the best interests of others
B)Following the law
C)Upholding the rights,values,and legal contracts of society
D)Acting based on universal principles
Answer: C
Q2) Rest's "Four Component Model of Morality" can best be described as:
A)A model of moral development based on one's thought process
B)A model of the relationship between ethical action and one's level of moral development
C)A model of moral judgment based on one's possession of certain virtues of behavior
D)An approach to ethical decision making based on prescribed steps in making ethical decisions
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Organizational Ethics and Corporate Governance
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/51865
Sample Questions
Q1) Which of the following is not a fraud method to overstate revenues?
A)Recording future sales in the current period
B)Recording sales of products that are out on consignment
C)Recording sales based onF.O.B.shipping point
D)Recording revenues of other companies by acting as a middleman
Answer: C
Q2) Which of the following is NOT an underlying trait of character of an effective leader identified by Johnson?
A)Confidence
B)Temperance
C)Reverence
D)Compassion
Answer: A
Q3) Which of the following was the most frequent anti-fraud control identified in the 2014 ACFE Global Fraud Survey?
A)External audit of financial statements
B)Code of conduct
C)Internal audit department
D)External audit of internal controls over financial reporting
Answer: A
5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Ethics and Professional Judgment in Accounting
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/51864
Sample Questions
Q1) Common judgment traps include:
A)Group think,judgment triggers,and reacting to pressures
B)Group think,judgment triggers,and a rush to solve problems
C)Reacting to pressures,a rush to solve problems,and Systems 1 thinking
D)Systems 1 thinking,cognitive dissonance,a rush to solve problems
Q2) Ethics rules in the AICPA Code apply to:
A)Individual CPAs who are licensed by state boards of accountancy only
B)Individual CPAs who are licensed by state boards of accountancy and accounting firms
C)Licensed accounting firms and certain members of alternative practice structures
D)Individual CPAs who are licensed by state boards of accountancy,licensed accounting firms,and certain members of alternative practice structures
Q3) Which of the following is NOT a safeguard to mitigate threats to compliance with the rules for CPAs in business or reduce them to an acceptable level?
A)Independent external audit
B)Tone at the top
C)Independent audit committee
D)Whistle-blower hot line
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Fraud in Financial Statements and Auditor
Responsibilities
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/51863
Sample Questions
Q1) Which of the following is NOT something external auditors are expected to do in looking for fraud?
A)Assessing the control environment of the organization
B)Evaluating internal controls
C)Considering audit risk and materiality
D)Evaluating management's commitment to serve the public interest
Q2) PCAOB Auditing Standard No.16 requires the auditor to communicate with the audit committee all but:
A)Significant accounting policies and practices
B)Critical accounting practices and policies
C)Significant unusual transactions
D)The procedures followed by the auditor in evaluating evidence
Q3) The SEC is concerned that auditors don't pay enough attention to qualitative factors affecting materiality because:
A)Qualitative factors may cause quantitatively small misstatements to become material
B)Quantitative factors are not always useful
C)Quantitative factors cannot be accumulated to assess overall materiality
D)All are of concern to the SEC
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Legal, Regulatory, and Professional Obligations of Auditors
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/51862
Sample Questions
Q1) Under the Private Securities Litigation Reform Act (PSLRA),if an auditor concludes that an illegal act with a material effect on the financial statements has been reported to,but not dealt with by senior management,the auditor should next report his/her conclusions to:
A)The Securities and Exchange Commission
B)The company's board of directors
C)The office of the controller/comptroller for the appropriate state
D)The Federal Bureau of Investigation
Q2) Principles-based standards differ from a rules-based approach because:
A)Principles-based standards rely on bright-line concepts to apply accounting standards
B)Rules-based standards rely on bright-line rules to apply accounting standards
C)Principles-based standards set uniform goals for the application of accounting standards
D)Rules-based standards form the basis of IFRS
Q3) One feature of a corporate governance system commonly found outside the U.S.is:
A)Unitary board of directors
B)Dual system of boards of directors
C)No board of directors
D)Acceptance of facilitating payments and bribery
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Earnings Management
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/51861
Sample Questions
Q1) One result of earnings management is:
A)It brings into question the quality of earnings
B)It uses a non-GAAP financial measure to manipulate earnings
C)EBITDA does not reflect GAAP earnings
D)It improves shareholder returns over time
Q2) Your professor asks you to consider whether earnings management can be justified by arguing that the net benefits of managing earnings exceeds any harms that may occur.The professor is asking you to apply what reasoning methods to make the analysis?
A)Egoism
B)Act utilitarianism
C)Rule utilitarianism
D)Virtue
Q3) Which of the following is NOT an earnings management technique?
A)Failing to write down or write off impaired assets
B)Releasing questionable reserves into income
C)Failing to record expenses and related liabilities when future obligations remain
D)Creating an allowance for uncollectible accounts and adjusting it at year end
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Ethical Leadership and Decision-Making in Accounting
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/51860
Sample Questions
Q1) De Cremer and Tenbrunsel characterize ethical leadership in part as:
A)Intention to demonstrate normatively appropriate conduct
B)Environment that promotes transformational leadership
C)Influencing followers to always adhere to leaders' goals for the organization
D)Environment that promotes servant leadership
Q2) The Ethical Leadership Scale developed by Kelly and Early identify each of the following measures of leadership:
A)Personal ethical competence,ethical leadership,and ethical standards
B)Personal ethical competence,ethical standards,and ethical organization
C)Personal ethical competence,ethical leadership,and ethical organization
D)Ethical leadership,moral intensity,and ethical culture
Q3) What is the role of moral intensity,organizational culture,and ethical leadership in promoting ethical behavior?
Q4) It can be said that ethical leaders exhibit each of the following traits except for:
A)Ethical leaders understand the need for respect,openness and trust
B)Ethical leaders aim to empower others to achieve success based on right action
C)Ethical leaders take responsibility for their actions and are accountable
D)Ethical leaders encourage behaviors whereby employees do what the leaders say
Page 10
To view all questions and flashcards with answers, click on the resource link above.