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-What event caused Congress to pass the Dodd-Frank Act? Multiple Choice a financ

ID: 2585454 • Letter: #

Question

-What event caused Congress to pass the Dodd-Frank Act?

Multiple Choice

a financial crisis starting in 2008

the accounting scandals at Enron and Worldcom in the early 2000s

an increase in fraudulent entries and financial misconduct

accounting scandals in response to the Sarbanes-Oxley Act

a depression

-Computech is paying its stockholders dividends for each share of stock they own. Which of the following is true regarding the way these dividend payments are taxed?

Multiple Choice

Computech pays taxes on this money, so the stockholders don't have to pay any taxes.

Both Computech and the stockholders must pay taxes on this money.

The stockholders pay taxes on this money, so Computech doesn't have to pay any taxes.

The government waives the taxes on this money to encourage companies to pay dividends.

Neither Computech nor the stockholders have to pay taxes on this money.

-Andrew is an accountant who works in Bates Corp. He has been certified by the Institute of Management Accountants. He is given some administrative responsibilities and is primarily responsible for preparing annual financial reports for higher authorities in his firm. According to this information, Andrew is most likely to be a certified

Multiple Choice

tax professional.

forensic accountant.

management accountant.

fraud examiner.

investment banker.

-At Clothes Horse, a mall clothing store, the manager has examined the source documents, recorded all the store's transactions in an accounting journal, and posted the recorded transactions. What is the final step the manager needs to do to complete the accounting cycle?

Multiple Choice

start preparing for the next accounting cycle

prepare financial statements

check to make sure the store has enough inventory to make profits

prepare a trial balance to correct any mistakes

review all the materials to make sure they are correct

Explanation / Answer

1) What event caused Congress to pass the Dodd-Frank Act?

Solution: a financial crisis starting in 2008

Explanation: Dodd-Frank Act was in response to a a financial crisis starting in 2008 which brought the most vital changes to regulations of U.S.

2) Computech is paying its stockholders dividends for each share of stock they own. Which of the following is true regarding the way these dividend payments are taxed?

Solution: Both Computech and the stockholders must pay taxes on this money.

Explanation: dividends are taxed twice, which means taxed to both the corporation and the shareholders

3) Andrew is an accountant who works in Bates Corp. He has been certified by the Institute of Management Accountants. He is given some administrative responsibilities and is primarily responsible for preparing annual financial reports for higher authorities in his firm. According to this information, Andrew is most likely to be a certified

Solution: management accountant.

Explanation: Certified Management Accountant (CMA) is finance or an accounting specialist

4) At Clothes Horse, a mall clothing store, the manager has examined the source documents, recorded all the store's transactions in an accounting journal, and posted the recorded transactions. What is the final step the manager needs to do to complete the accounting cycle?

Solution: prepare financial statements

Explanation: Although the next step will be preparation trial balance; however the final step the manager needs to do to complete the accounting cycle will be to prepare the balance sheet and income statement using the corrected account balances