Answer: True False
126) Trends in the modern business environment include a shift to a service economy and the rise of the global
marketplace.
Answer: True False
127) The decision to bill customers electronically, which saves the company money, would be a positive benefit
when performing cost- benefit analysis.
Answer: True False
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128) ISO 9001:2008 is a certification program for companies that adhere to an international set of quality
management standards and guidelines.
Answer: True False
129) According to SOX, at least one member of the audit committee should be a financial expert.
Answer: True False
130) IFRS stands for "important financial reporting standards."
Answer: True False
131) XBRL will be required of both public and private companies.
Answer: True False
132) Managerial accounting has its roots in the industrial age of manufacturing.
Answer: True False
133) Sustainability is generally described as the ability to meet the needs of the present without compromising the
ability of future generations to meet their own needs.
Answer: True False
134) Company initiatives to address sustainability and corporate responsibility not only "do the right thing," but also
can lead to economic profits by increasing demand for the company's products and services.
Answer: True False
135) The advantages of XBRL include decreases in the need for manual searches through corporate reports for
specific pieces of information as well as facilitating the comparison of companies results to industry averages
and to each other.
Answer: True False
136) The "triple bottom line" includes measuring a corporations results in terms of environmental sustainability,
social responsibility, and profit.
Answer: True False
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
137) SOX requires that the company's financial statements be certified by the company's
A) CFO. B) CEO. C) CFO and CEO. D) Controller.
Answer: C
138) IFRS stands for
A) International and Foreign Reporting Systems.
B) Important Foreign Registering Systems.
C) International and Foreign Registering Standards.
D) International Financial Reporting Standards.
Answer: D
139) XBRL stands for
A) eXtensive Business Registering Location. B) eXtensible Business Reporting Language.
C) eXtractable Business Reporting Location. D) eXisting Business Responsibility Language.
Answer: B
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140) XBRL is essentially a
A) new set of accounting standards.
B) new set of ethical standards.
C) new set of auditing standards.
D) tagging system which allows computer programs to extract information from financial reports.
Answer: D
141) Under Sarbanes-Oxley, what is the maximum number of years of imprisonment for knowingly destroying or
creating documents to obstruct any federal investigation?
A) 20 years B) 15 years C) 10 years D) 5 years
Answer: A
142) Which reflects a philosophy of providing customers with superior products and services?
A) TQM B) IFRS C) ERP D) XBRL
Answer: A
143) What is the abbreviation of the name given to software systems that can integrate all departments?
A) TQM B) Total Integrated Software
C) ERP D) JIT
Answer: C
144) What does ERP stand for?
A) Enterprise Resource Partition B) Expandable Resource Planning
C) Extensible Reporting Program D) Enterprise Resource Planning
Answer: D
145) E-commerce refers to the
A) production of superior goods and services.
B) quick delivery of goods and services.
C) exchange of information with customers and suppliers.
D) conduct of business on the internet.
Answer: D
146) Exchanging information to reduce costs, speed delivery, and improve quality is best described as
A) ERP. B) JIT.
C) Supply- chain management. D) TQM.
Answer: C
147) Wonder Company is considering installing an ERP system. To make a good decision, Wonder needs to conduct
a(n)
A) JIT survey. B) ISO 9001:2000 survey.
C) cost- benefit analysis. D) TQM survey.
Answer: C
148) The "triple bottom line" focuses on what three factors that influence a firm's ability to survive and thrive in the
long run?
A) Profit, people, planet B) Planet, profit, place
C) Profit, people, place D) People, places, things
Answer: A
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149) In recent years, there has been an increasing awareness and growing interest in ________ and social
responsibility by both consumers and corporations.
A) the bottom line B) just-in- time
C) sustainability D) total quality management
Answer: C
150) How is sustainability defined?
A) Reducing green- house gas emissions