Question 1

The stated principles of the AICPA Code of Professional Conduct do not include

Accepted Answer

A)  Integrity. 
B)  Optimism. 
C)  Objectivity and Independence. 
D)  Responsibilities. 
A)  Integrity. 
B)  Optimism. 
C)  Objectivity and Independence. 
D)  Responsibilities.

Question 2

Your accounting instructor allows you to look at his grade book in order to verify the points you have received to date in the final course taken by all accounting majors. While looking at your points, you notice that your best friend's score on the last exam was recorded incorrectly. He actually received a 68 on the test but the score was recorded as an 86 in the grade book. Your friend needs a passing grade in this class in order to graduate. If the grade book were updated to show the correct score, your friend might not have enough points to pass the course.
Required:
Discuss the steps you should take to deal with this ethical dilemma using three ethical criteria. You need not indicate the ethical action you would take.

Accepted Answer

Students may answer in a variety of ways

Question 3

Which of the following statements about the FASB Accounting Standards Codification is false?

Accepted Answer

A)  The Codification is currently the only authoritative source of U.S. GAAP. 
B)  The purpose of creating the Codification was to simplify user access to authoritative U.S. GAAP. 
C)  The framework of the Codification contains six levels, which are increasingly more specific. 
D)  The six levels contained within the Codification framework are hierarchical in nature, such that the higher levels are considered to be more authoritative than the lower levels. 
A)  The Codification is currently the only authoritative source of U.S. GAAP. 
B)  The purpose of creating the Codification was to simplify user access to authoritative U.S. GAAP. 
C)  The framework of the Codification contains six levels, which are increasingly more specific. 
D)  The six levels contained within the Codification framework are hierarchical in nature, such that the higher levels are considered to be more authoritative than the lower levels.

Question 4

The Financial Accounting Standards Board FASB) began in 1973 after the AICPA phased out the Accounting Principles Board APB).

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not considered an ethical issue in accounting?

Accepted Answer

A)  Biased financial statement presentation 
B)  Accelerated revenue recognition 
C)  Earnings manipulation 
D)  Industry practices 
A)  Biased financial statement presentation 
B)  Accelerated revenue recognition 
C)  Earnings manipulation 
D)  Industry practices

Question 6

What are the FASB operating procedures when reviewing whether to issue a new standard?

Accepted Answer

1) Identify a topic
2) Appoint a task fo

Question 7

What is the responsibility of FASB?

Accepted Answer

FASB is responsible for identifying fina

Question 8

What is the responsibility of the International Accounting Standards Board?

Accepted Answer

A)  IASB promotes uniform accounting standards among different countries. 
B)  IASB settles accounting disputes between auditors and international companies. 
C)  IASB issues standards which regulate the financial accounting and reporting of multinational corporations and then enforces them through legal channels. 
D)  IASB is to develop a uniform currency in which the financial transactions would be measured. 
A)  IASB promotes uniform accounting standards among different countries. 
B)  IASB settles accounting disputes between auditors and international companies. 
C)  IASB issues standards which regulate the financial accounting and reporting of multinational corporations and then enforces them through legal channels. 
D)  IASB is to develop a uniform currency in which the financial transactions would be measured.

Question 9

Which of the following is not a decision that external stakeholder's of a company's financial information would make?

Accepted Answer

A)  whether or not to extend credit to the company 
B)  whether or not to hold the company's stock 
C)  whether or not the company should add a new product line 
D)  whether or not to ask for an increase in employees' benefits during union contract negotiations 
A)  whether or not to extend credit to the company 
B)  whether or not to hold the company's stock 
C)  whether or not the company should add a new product line 
D)  whether or not to ask for an increase in employees' benefits during union contract negotiations

Question 10

Which of the following statements regarding Standards contained in the FASB Accounting Standards Codification ASC) is true?

Accepted Answer

A)  They have the force of law, and failure to follow them can be prosecuted. 
B)  They apply to financial reporting by all U.S. companies. 
C)  They were created in 2009 when the ASC was created and did not exist prior to that time. 
D)  They have to be approved by the SEC before they become effective. 
A)  They have the force of law, and failure to follow them can be prosecuted. 
B)  They apply to financial reporting by all U.S. companies. 
C)  They were created in 2009 when the ASC was created and did not exist prior to that time. 
D)  They have to be approved by the SEC before they become effective.

Question 11

Match between columns
                        Premises:  Reporting standards issued by this organization are legally enforceable.  Failure to adhere to them is a violation of law.
 Reporting standards issued by this organization only apply to companies listed on U.S. securities exchanges.
Reporting standards issued by this organization apply to all U.S. companies, whether publicly traded or privately held.
This organization has the legal authority and the responsibility to oversee financial reporting in the U.S.
Requires 10 out of 16 board members’ approvals before a standard is issued.
This organization is government agency established by the U.S. Congress.

Accepted Answer

The Answer of Securities and Exchange Commission (SEC) and International is...

Question 12

What are the six areas covered in the AICPA Code of Professional Conduct?

Accepted Answer

1) Responsibilities
2) The Pub

Question 13

Prior to 2009, which of the following types of FASB Pronouncements carried the highest authority within GAAP by establishing the methods and procedures required on specific accounting issues?

Accepted Answer

A)  Staff Positions 
B)  Statements of Financial Accounting Standards 
C)  Statements of Financial Accounting Concepts 
D)  Technical Bulletins 
A)  Staff Positions 
B)  Statements of Financial Accounting Standards 
C)  Statements of Financial Accounting Concepts 
D)  Technical Bulletins

Question 14

The primary reason that financial accounting and managerial accounting have somewhat different objectives is because they

Accepted Answer

A)  need information in different formats 
B)  provide information for different decisions 
C)  need information in different geographic locations 
D)  need information at different times 
A)  need information in different formats 
B)  provide information for different decisions 
C)  need information in different geographic locations 
D)  need information at different times

Question 15

The agreement in 2002 by the FASB and IASB to develop high quality, compatible accounting standards that could be used by both domestic and cross-border financial reporting was called the

Accepted Answer

A)  International Accounting Standards agreement 
B)  Financial Accounting Standards Board Global agreement 
C)  Norwalk agreement 
D)  United GAAP agreement 
A)  International Accounting Standards agreement 
B)  Financial Accounting Standards Board Global agreement 
C)  Norwalk agreement 
D)  United GAAP agreement

Question 16

Which organization has the most legal authority?

Accepted Answer

A)  Financial Accounting Standards Board 
B)  Accounting Standards Executive Committee 
C)  Governmental Accounting Standards Board 
D)  Securities and Exchange Commission 
A)  Financial Accounting Standards Board 
B)  Accounting Standards Executive Committee 
C)  Governmental Accounting Standards Board 
D)  Securities and Exchange Commission

Question 17

What types of resources do companies compete for and why?

Accepted Answer

Companies compete for scarce resources t

Question 18

The Codification is set up as a system of levels starting with sections, topics, and subtopics.

Accepted Answer

A) True 
 B)False

Question 19

Dividends that are paid to owners would affect both the

Accepted Answer

A)  balance sheet and statement of cash flows. 
B)  balance sheet and income statement. 
C)  income statement and statement of changes in equity. 
D)  income statement and statement of cash flows. 
A)  balance sheet and statement of cash flows. 
B)  balance sheet and income statement. 
C)  income statement and statement of changes in equity. 
D)  income statement and statement of cash flows.

Question 20

What is the correct order of presentation for the statement of cash flows?

Accepted Answer

A)  Operating, Investing, Financing 
B)  Financing, Operating, Investing 
C)  Investing, Financing, Operating 
D)  Operating, Financing, Investing 
A)  Operating, Investing, Financing 
B)  Financing, Operating, Investing 
C)  Investing, Financing, Operating 
D)  Operating, Financing, Investing

Exam 1: The Demand for and Supply of Financial Accounting Information

The stated principles of the AICPA Code of Professional Conduct do not include

Which of the following statements about the FASB Accounting Standards Codification is false?

The Financial Accounting Standards Board FASB) began in 1973 after the AICPA phased out the Accounting Principles Board APB).

Which of the following is not considered an ethical issue in accounting?

What are the FASB operating procedures when reviewing whether to issue a new standard?

What is the responsibility of FASB?

What is the responsibility of the International Accounting Standards Board?

Which of the following is not a decision that external stakeholder's of a company's financial information would make?

Which of the following statements regarding Standards contained in the FASB Accounting Standards Codification ASC) is true?

What are the six areas covered in the AICPA Code of Professional Conduct?

Prior to 2009, which of the following types of FASB Pronouncements carried the highest authority within GAAP by establishing the methods and procedures required on specific accounting issues?

The primary reason that financial accounting and managerial accounting have somewhat different objectives is because they

The agreement in 2002 by the FASB and IASB to develop high quality, compatible accounting standards that could be used by both domestic and cross-border financial reporting was called the

Which organization has the most legal authority?

What types of resources do companies compete for and why?

The Codification is set up as a system of levels starting with sections, topics, and subtopics.

Dividends that are paid to owners would affect both the

What is the correct order of presentation for the statement of cash flows?

Financial Reporting: Its Conceptual Framework

Review of a Company S Accounting System

The Balance Sheet and the Statement of Shareholders Equity

The Income Statement and the Statement of Cash Flows Time Value of Money Module

Cash and Receivables

Inventories: Cost Measurement and Flow Assumptions

Inventories: Special Valuation Issues

Current Liabilities and Contingent Obligations

Property, Plant, and Equipment: Acquisition and Subsequent Investments

Depreciation, Depletion, Impairment, and Disposal

Intangibles

Investments and Long-Term Receivables

Financing Liabilities: Bonds and Long-Term Notes Payable

Contributed Capital

Retained Earnings and Earnings Per Share

Advanced Issues in Revenue Recognition

Accounting for Income Taxes

Accounting for Post-Retirement Benefits

Accounting for Leases

The Statement of Cash Flows

Accounting for Changes and Errors

Understanding Time Value of Money Formulas and Concepts

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