In the First Part of the Decade That Began in 2000

question 119

Multiple Choice

In the first part of the decade that began in 2000, the U.S. government went from a surplus to a deficit. Other things the same, this means the

• A)supply of loanable funds shifted to the right.
• B)supply of loanable funds shifted to the left.
• C)demand for loanable funds shifted to the right.
• D)demand for loanable funds shifted to the left.

Explain the concept and implications of managing earnings, including practices such as "cookie jar reserves" and "big bath" charges.

Recognize the roles of the audit committee, internal audit staff, and the SEC in preventing and identifying accounting errors and irregularities.

Understand the significance of arrangement understanding, bill and hold basis, and up-front fees in revenue recognition.

Describe the process for correcting accounting errors and the treatment of prior period adjustments.