Business Essentials, 13e (Ebert/Griffin)

Chapter 15 The Role of Accountants and Accounting Information

1) Discuss the purpose of the CPA Vision Project.

2) Discuss the provision of the Sarbanes-Oxley Act of 2002 (Sarbox).

Hint: Federal regulations, primarily the Sarbanes-Oxley Act of 2002 (Sarbox or SOX), have
been enacted to restore and maintain public trust in corporate accounting practices.

3) Give three examples of management advisory services.

4) Identify the potential users of accounting information.

5) Discuss the role of a private accountant within large and small firms.

6) Describe the importance of current assets.

7) Explain fixed assets and how accountants spread the cost of an asset over the years of its
useful life.
Hint Fixed assets (such as land, buildings, and equipment) have long-term use or value, but as
buildings and equipment wear out or become obsolete, their value decreases.

8) What is the statement of cash flow required by the SEC and why is it required?

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9) Why is activity timing important in revenue recognition?

10) Explain what is covered by GAAP and why it is important to use these standards.

11) Discuss the principle known as full disclosure.

12) Why are efforts to standardize global accounting practices important?

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