Reference no: EM132662889

Problem 1: Which of the following incidents and related large drops in stock market values led to additional laws, rules, and regulation that impact accounting and financial reporting?

A. The Stock Market Crash of 1929.

B. The bursting of the internet bubble and corporate scandals of the late 1990's and early 2000's.

C. Both A and B

D. None of the above.

Problem 2: On January 1, 2020, MegaEmployer, Inc., made the following "reversing" entry:

DB Wages Payable 30,000

CR Wage Expense 30,000

MegaEmployer was established in 1972, and has a December 31 year end.

Based on the above information, which of the following may we infer?

A. That 2019 Wage Expense was higher than the Total Wages paid in 2019.

B. That 2020 Wage Expense will be lower than the Total Wages paid in 2020.

C. We may infer both A and B

D. We can't be certain of either A or B

Problem 3: The following statement is TRUE / FALSE (Circle the Correct Answer):

Per the FASB's Conceptual Framework, accounting information should be provided at a level such that an individual with no knowledge of business or economics is still able to understand the information.