Financial Accounting 1A – Online
By: Chak Lam Andy WONG
http://fl1.findlaw.com/news.findlaw.com/hdocs/docs/gwbush/sarbanesoxley072302.pdf What is an annual report? A formal report on a company’s performance in the preceding year Name the federal government agency that requires a publicly held corporation to keep shareholders informed of its state of business. Securities and Exchange Commission (SEC) What is the purpose of auditing financial statements? To show whether the financial statements are complete, reasonable, and prepared in a manner consistent with generally accepted accounting principles (GAAP) at a set time. What is the name of rules and regulations used to prepare financial statements? Generally accepted accounting principles (GAAP) Name two other primary financial information sources. SEC Form 10-K & unaudited SEC Form 10-Q What type of information is provided in the statement of earnings? A financial statement that reports the results of a company’s business operations for a set period. What type of information is provided in the statement of financial position? A company’s assets, liabilities and stockholders’ equity at a set date What type of information is provided in the statement of cash flows? The flow of cash in and out, operating activities, investing activities and financing activities of the company. Briefly explain the purpose of Public Company Accounting Oversight Board (PCAOB). To oversee auditors of public companies in order to protect the interests of U.S. investors and further the public interest in the preparation of informative, fair, and independent audit reports Under the new rules of the Sarbanes-Oxley Act of...