Question

Players in the Game

• ______________________ – responsible for providing the financial reports

• ______________________ – group of individuals who represents shareholders’ interests

• ______________________ – provides an independent assessment of whether the statements conform to GAAP rules (internal, external)

• _______________________ – provides legal standards for various steps in the process (e.g., FASB, SEC, PCAOB, Sarbanes-Oxley standards)

Major Regulatory Bodies:

• ______________________ – major government administrative body whose purpose is to protect investors

• ______________________ – independent board who sets Generally Accepted Accounting Principles (GAAP)

• ______________________ – independent board who oversees audit standards. Must be followed by independent auditors working for public companies

Major “Forms”

• ______________________ – major report presented by public companies at year-end. Contains yearly financial statements, disclosure notes, and other important information for investors

• ______________________ – report presented by public companies each quarter. Reviewed by the auditor, but does not require a full-blown audit review.

• ______________________ – report presented by public companies when a major event occurs. They must be filed if the event would be important to investors.

Bank Reconciliation: Jeremy’s Jewelry has the following information on December 31^st, 2019:

Ending Cash Balance from Bank	$50,000
NSF Check	$500
Deposits Recorded by Jeremy’s Jewelry, but not the Bank	$12,000
Interest Charge from Bank	$1,000

What amount of cash should Jeremy’s Jewelry report on its end of year balance sheet?

Answer 1

1) COMPANY MANAGEMENT.

2) BOARD OF DIRECTORS

3) INTERNAL as well as EXTERNAL AUDITORS

4) THE SECURITIES AND EXCHANGE COMMISSION (SEC)

5) FINANCIAL ACCOUNTING STANTARDS BOARD (FASB)

6) AUDITING STANTARD BOARD

7) ANNUAL REPORT

8) INTERIM REPORT

9) Financial statements includes statement of financial position, income statement, cash flow, comprehensive income statement and statement of changes in stockholder's equity

10) CASH BALANCE FROM BANK = 50,000

LESS : NSF = 500

BANK CHARGES = 1000

ADD : DEPOSIT RECORDED = 12000

BALANCE = 60500