Question 1

The Governmental Accounting Standards Board

Accepted Answer

A) oversees the activities of the SEC. 
B) is a private-sector body, which addresses state and local governmental reporting issues. 
C) is a division of the Securities and Exchange Commission, which oversees the corpo-rate accounting in annual reports. 
D) was terminated when the Financial Accounting Standards Board was created. 
A) oversees the activities of the SEC. 
B) is a private-sector body, which addresses state and local governmental reporting issues. 
C) is a division of the Securities and Exchange Commission, which oversees the corpo-rate accounting in annual reports. 
D) was terminated when the Financial Accounting Standards Board was created.

Question 2

Whether a business is successful and thrives is determined by

Accepted Answer

A) markets. 
B) free enterprise. 
C) competition. 
D) all of these. 
A) markets. 
B) free enterprise. 
C) competition. 
D) all of these.

Question 3

The purpose of the Emerging Issues Task Force is to

Accepted Answer

A) develop a conceptual framework as a frame of reference for the solution of future problems. 
B) lobby the FASB on issues that affect a particular industry. 
C) do research on issues that relate to long-term accounting problems. 
D) issue statements which reflect a consensus on how to account for new and unusual financial transactions that need to be resolved quickly. 
A) develop a conceptual framework as a frame of reference for the solution of future problems. 
B) lobby the FASB on issues that affect a particular industry. 
C) do research on issues that relate to long-term accounting problems. 
D) issue statements which reflect a consensus on how to account for new and unusual financial transactions that need to be resolved quickly.

Question 4

Which of the following organizations has not been instrumental in the development of financial accounting standards in the United States?

Accepted Answer

A) AICPA 
B) FASB 
C) IASB 
D) SEC 
A) AICPA 
B) FASB 
C) IASB 
D) SEC

Question 5

The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the

Accepted Answer

A) FASB. 
B) AICPA. 
C) SEC. 
D) APB. 
A) FASB. 
B) AICPA. 
C) SEC. 
D) APB.

Question 6

Companies that are listed on a stock exchange are required to submit their financial statements to the

Accepted Answer

A) AICPA. 
B) APB 
C) FASB. 
D) SEC. 
A) AICPA. 
B) APB 
C) FASB. 
D) SEC.

Question 7

An effective process of capital allocation promotes productivity and provides an efficient market for buying and selling securities and obtaining and granting credit.

Accepted Answer

A) True 
 B)False

Question 8

The Financial Accounting Standards Board employs a "due process" system which

Accepted Answer

A) is an efficient system for collecting dues from members. 
B) enables interested parties to express their views on issues under consideration. 
C) identifies the accounting issues that are the most important. 
D) requires that all accountants must receive a copy of financial standards. 
A) is an efficient system for collecting dues from members. 
B) enables interested parties to express their views on issues under consideration. 
C) identifies the accounting issues that are the most important. 
D) requires that all accountants must receive a copy of financial standards.

Question 9

Financial reports in the early 21st century did not provide any information about a company's soft assets.

Accepted Answer

A) True 
 B)False

Question 10

FASB Technical Bulletins

Accepted Answer

A) are similar to FASB Interpretations in that they establish enforceable standards under the AICPA's Code of Professional Ethics. 
B) are issued monthly by the FASB to deal with current topics. 
C) are not expected to have a significant impact on financial reporting in general and provide guidance when it does not conflict with any broad fundamental accounting principle. 
D) were recently discontinued by the FASB because they dealt with specialized topics having little impact on financial reporting in general. 
A) are similar to FASB Interpretations in that they establish enforceable standards under the AICPA's Code of Professional Ethics. 
B) are issued monthly by the FASB to deal with current topics. 
C) are not expected to have a significant impact on financial reporting in general and provide guidance when it does not conflict with any broad fundamental accounting principle. 
D) were recently discontinued by the FASB because they dealt with specialized topics having little impact on financial reporting in general.

Question 11

FASB Technical Bulletins are more authoritative than FASB Standards and Interpretations.

Accepted Answer

A) True 
 B)False

Question 12

One objective of financial reporting is to provide

Accepted Answer

A) information about the investors in the business entity. 
B) information about the liquidation values of the resources held by the enterprise. 
C) information that is useful in assessing cash flow prospects. 
D) information that will attract new investors. 
A) information about the investors in the business entity. 
B) information about the liquidation values of the resources held by the enterprise. 
C) information that is useful in assessing cash flow prospects. 
D) information that will attract new investors.

Question 13

One weakness of accrual accounting is that it does not provide a good indication of the enterprise's present and continuing ability to generate favorable cash flows.

Accepted Answer

A) True 
 B)False

Question 14

The Governmental Accounting Standards Board's main purpose is to develop standards for

Accepted Answer

A) the General Accounting Office. 
B) the Federal government. 
C) state and local government. 
D) the Internal Revenue Service. 
A) the General Accounting Office. 
B) the Federal government. 
C) state and local government. 
D) the Internal Revenue Service.

Question 15

Generally Accepted Accounting Principles include: 1) FASB Technical Bulletins, 2) APB Opinions, and 3) Widely-accepted industry practices.These three items rank from most authoritative to least authoritative as follows:

Accepted Answer

A) 1, 2, 3. 
B) 1, 3, 2. 
C) 2, 1, 3. 
D) 2, 3, 1. 
A) 1, 2, 3. 
B) 1, 3, 2. 
C) 2, 1, 3. 
D) 2, 3, 1.

Question 16

The process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organization's operations is called

Accepted Answer

A) financial accounting. 
B) managerial accounting. 
C) tax accounting. 
D) auditing. 
A) financial accounting. 
B) managerial accounting. 
C) tax accounting. 
D) auditing.

The Governmental Accounting Standards Board

Whether a business is successful and thrives is determined by

The purpose of the Emerging Issues Task Force is to

Which of the following organizations has not been instrumental in the development of financial accounting standards in the United States?

The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the

Companies that are listed on a stock exchange are required to submit their financial statements to the

An effective process of capital allocation promotes productivity and provides an efficient market for buying and selling securities and obtaining and granting credit.

The Financial Accounting Standards Board employs a "due process" system which

Financial reports in the early 21st century did not provide any information about a company's soft assets.

FASB Technical Bulletins

FASB Technical Bulletins are more authoritative than FASB Standards and Interpretations.

One objective of financial reporting is to provide

One weakness of accrual accounting is that it does not provide a good indication of the enterprise's present and continuing ability to generate favorable cash flows.

The Governmental Accounting Standards Board's main purpose is to develop standards for

Generally Accepted Accounting Principles include: 1) FASB Technical Bulletins, 2) APB Opinions, and 3) Widely-accepted industry practices.These three items rank from most authoritative to least authoritative as follows:

The process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organization's operations is called

Conceptual Framework Underlying Financial Accounting

The Accounting Information System

Income Statement and Related Information

Balance Sheet and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Current Liabilities and Contingencies

Filters

Exam 1: Financial Accounting and Accounting Standards

The Governmental Accounting Standards Board

Whether a business is successful and thrives is determined by

The purpose of the Emerging Issues Task Force is to

Which of the following organizations has not been instrumental in the development of financial accounting standards in the United States?

The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the

Companies that are listed on a stock exchange are required to submit their financial statements to the

An effective process of capital allocation promotes productivity and provides an efficient market for buying and selling securities and obtaining and granting credit.

The Financial Accounting Standards Board employs a "due process" system which

Financial reports in the early 21st century did not provide any information about a company's soft assets.

FASB Technical Bulletins

FASB Technical Bulletins are more authoritative than FASB Standards and Interpretations.

One objective of financial reporting is to provide

One weakness of accrual accounting is that it does not provide a good indication of the enterprise's present and continuing ability to generate favorable cash flows.

The Governmental Accounting Standards Board's main purpose is to develop standards for

Generally Accepted Accounting Principles include: 1) FASB Technical Bulletins, 2) APB Opinions, and 3) Widely-accepted industry practices.These three items rank from most authoritative to least authoritative as follows:

The process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organization's operations is called

Conceptual Framework Underlying Financial Accounting

The Accounting Information System

Income Statement and Related Information

Balance Sheet and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Current Liabilities and Contingencies

Filters