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1. Corporate
a. I and III only
b. II and IV only
c. I, II, III, and IV
d. II only
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- The standards, procedures, and principles companies must follow when preparing their financial statements are known as which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkOwners equity represents which of the following? A. the amount of funding the company has from issuing bonds B. the sum of the retained earnings and accounts receivable account balances C. the total of retained earnings plus paid-in capital D. the business owners/owners share of the company, also known as net worth or net assetsWhich of the following is not one of the five primary responsibilities of the Securities and Exchange Commission (the SEC)? A. inform and protect investors B. regulate securities law C. facilitate capital formation D. assure that dividends are paid by corporations
- This is the independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements. A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework1) Define the following terms: a) Corporate governance b) The market for corporate control c) Agency Theory d) Stakeholder capitalization NB: Answer question a-dMatch each of the financial statement theory and concepts with the statement that best describes them Maximize shareholder wealth Corporate Governance financial securities _____ 1. Tradable promises of future payments issued by government and companies _____ 2. The set of rules that control companies’ behaviour towards its directors, managers, employees, shareholders, creditors, customers, competitors, and community _____ 3. It’s required to mitigate the agency problem (information asymmetry and moral hazard) within the firm _____ 4. It is the primary (main) objective of the firm _____ 5. It consists of debt instruments and equity instruments
- Which of the below are users of financial statement of a company? i) Stockholders , bondholders, ii) financial institutions iii. Clients and vendors iv. Labor unions and retired employees A. i ve ii B. i, ii, iii ve iv C. i, ii ve iii D. i , ii ve ivexplain how financial management relates to general corporate policyiii) “Qualitative characteristics are the attributes that make information provided in financial statements useful to users”. Briefly explain the four main qualitative characteristics of financial statements with reference to shareholders of a company.
- 4. Match the description with its appropriate term. Group choices: a. Chief Financial Officer b. Financial Analyst c. Enrolled Agent d. Chief Executive Officer e. Controller f. Cash Managemnet Accountant Has responsibilities that include transferring monies between accounts and monitoring deposits? The corporation officer who has the overall responsibility of the management of a company? A corporate officer who reports to the chief executive officer and oversees all of the accounting and finance concerns of a company? The financial officer of a corporation reporting to the chief financial officer who is responsible for the accounting records and financial statements? A credential focusing on a career in taxation created by the IRS to signify significant knowledge of the US tax code? Someone who assists in preparing budgets, tracking actual costs and performs other tasks that support other management personnel in organizing forecasts and projections?Please answer all 3 subparts Question 1 (i) Which of the following statement is more apprpriate concering a two tier board?A. The management board is led by the chairman.B. Members of the supervisory board form part of the Audit CommitteeC. The CEO reports to the shareholders.D. The management board comprises of only executive directors. (ii) Example of economic stakeholders are:A. Customers, suppliers, bank and other debt holders.B. The board members. C. Shareholders and employeesD. Any stakeholder who has a direct or indirect stake in the company. (iii) Accoring to managerial definition of corporate governance, the role of the board is to:A. Accountable to all shareholders.B. To serve management.C. Ensure the interest of everyone is protectedD. Do what is best for the corporationDiscuss the role of the financial manager or the Chief Finance Officer (CFO) in making decisions as to the function in the financing, investing, operating, and dividend policies. Illustrate or give a concrete example or scenario on each said function.
