Finance And Accounting

Question: XYZ Company reports book income of $96,000 and taxable income of $120,000 (the $24,000 difference is attributed to warranty expenses). The statutory tax rate is 30 percent and the company reports a current liability for income taxes payable of $36,000 on its Year 1 Balance Sheet. In its Income Statement, the company reports income tax expense at an effective rate of 37.5 percent. Given the above information, what amount of income tax expense did XYZ Company report in Year 1?
A
$36,000

B
$21,600

C
$17,280

D
$33,750

Note: Answer not sure
1. Report
Question: The equity method is used to account for _________________.
A
minority, passive investments

B
minority, active investments

C
majority, active investments

D
All of these

Note: Answer not sure
1. Report
Question: What is the requirement regarding code of ethics for companies under SOX?
A
Companies must have a code of ethics

B
Code of ethics should be loosely followed

C
Companies must have an elaborate code of ethics

D
Companies must disclose if they have adopted a code of ethics

Note: Answer not sure
1. Report
Question: What was the main reason behind the act to be drafted?
A
Accounting scandals in the United States unraveled and created financial ruin for several companies

B
It was scheduled to happen every 50 years

C
Stock market crash

D
Inflation problem

Note: Answer not sure
1. Report
Question: Why are whistleblowers protected under law now?
A
Due to public outcry

B
To help the economy

C
Out of good faith

D
Often times only company insiders will be the ones who know about illegal activities in a company, and the fear of retaliation must be removed through legal protection

Note: Answer not sure
1. Report
Question: What is the new maximum prison term for executives who impede an official investigation?
A
5 years

B
20 years

C
100 years

D
Life in prison

Note: Answer not sure
1. Report
Question: What is the first step in implementing Sarbanes Oxley compliance?
A
Having executives sign off that the firm is compliant

B
Having an audit completed

C
Creating proper documentation of accounting and other departments processes

D
Going public

Note: Answer not sure
1. Report
Question: What is COBIT?
A
Control Objectives for Information and Related Technology

B
Software used in documentation

C
Name of the main audit firm

D
Control of Best Internal Transactions

Note: Answer not sure
1. Report
Question: What is a commonly used acronym for Sarbanes Oxley Act?
A
SOA

B
SOB

C
SOX

D
SAD

Note: Answer not sure
1. Report
Question: What is meant by "top down" testing?
A
Starting with low level procedures

B
Starting with processes which have no risk

C
Starting with the highest priority key controls for testing

D
Starting with the financial statements

Note: Answer not sure
1. Report

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Question: The equity method is used to account for _________________.

Question: What is the requirement regarding code of ethics for companies under SOX?

Question: What was the main reason behind the act to be drafted?

Question: Why are whistleblowers protected under law now?

Question: What is the new maximum prison term for executives who impede an official investigation?

Question: What is the first step in implementing Sarbanes Oxley compliance?

Question: What is COBIT?

Question: What is a commonly used acronym for Sarbanes Oxley Act?

Question: What is meant by "top down" testing?