ETH 557 Final Exam
ETH 557 Final Exam
1. In 2003, FASB and IASB met and established four criteria for establishing revenue recognition. To recognize revenue, which of the following conditions must be present?
2. Failure to provide any care in fulfilling a duty owed to another is called
3. Which of the following is a fundamental characteristic of the market system?
4. The income effect indicates that
5. The price elasticity of demand coefficient measures
6. A normative statement is one that
7. Many conflicts of interest in business contracts can be remedied ethically by which of the following?
8. Four professional general standards and responsibilities for Certified Public Accountants are quality control and assurance, professional judgment, competence, and:
9. In 2002, Adelphia Cable filed bankruptcy when it was discovered that
10. When budgets are used to measure performance, there is a danger that budgetary slack may occur. This happens when
11. ABC Company owes XYZ Enterprises $1 million for goods purchased from XYZ over a year ago. XYZ Enterprises continues to list the $1 million in their accounts receivable balance and does not record any allowance for doubtful accounts. XYZ Enterprises is failing to follow
12) The EU Privacy Directive presents problems for the United States in that
13) When revenue is recognized and shipment has not been made and the criteria for recognizing revenue on bill-and-hold transactions set out in SEC Staff Accounting Bulletin No. 101 have not been met, this is known as
14. According to the Agency Theory, in a corporation there are two types of information consumers known as
15. Tom Donaldson and Tom Dunfee are proponents of ethical guidelines related to technology that are based on differentiating hypernorms from nonhypernorms. This theory is known as
16. When the economist says that economic wants are insatiable, this means that
17. The pursuit of self-interest
18) The bankruptcy of WorldCom in 2002 was due to the company’s actions in
19) Productive efficiency refers to
20. Agency costs arise when agents fail to act in the best interests of the principals. One example of losses from poor decisions would be
21) If the price of normal good X rises, the income
22) Section 55 of the Principles of Professional Conduct of the AICPA states that
23) The concept of economic efficiency is primarily concerned with
24. Which of the following is a normative statement?
25. Suppose that as the price of Y falls from $2.00 to $1.90 the quantity of Y demanded increases from 110 to 118. Then, the price elasticity of demand is
26) Other things equal, an excise tax on a product will
27) If a conflict of interest arises prior to entering into a business contract, the parties should
28) Assuming an economy has fixed quantities of resources, that economy
29) When evaluating the performance of managers in investment centers, performance metrics should be based on
30. When applying for a bank loan or trade credit, one way a company can appear to be in a healthier financial position would be to