Question 1

By law, the setting of accounting standards is the responsibility of the:

Accepted Answer

A)  AICPA Committee on Accounting Procedure 
B)  New York Stock Exchange 
C)  Accounting Principles Board 
D)  Securities and Exchange Commission 
E)  Financial Accounting Standards Board 
A)  AICPA Committee on Accounting Procedure 
B)  New York Stock Exchange 
C)  Accounting Principles Board 
D)  Securities and Exchange Commission 
E)  Financial Accounting Standards Board

Question 2

The Accounting Principles Board issued Opinions between:

Accepted Answer

A)  1959-1973 
B)  1939-1959 
C)  1973-present 
D)  1966-1976 
E)  none of the answers are correct 
A)  1959-1973 
B)  1939-1959 
C)  1973-present 
D)  1966-1976 
E)  none of the answers are correct

Question 3

Valuing assets at their liquidation values is not consistent with:

Accepted Answer

A)  conservatism 
B)  materiality 
C)  going concern 
D)  time period 
E)  none of the answers are correct 
A)  conservatism 
B)  materiality 
C)  going concern 
D)  time period 
E)  none of the answers are correct

Question 4

Predictive value, feedback value, and timeliness are ingredients needed to ensure that the information is reliable.

Accepted Answer

A) True 
 B)False

Question 5

The SEC has the authority to determine generally accepted accounting principles and to regulate the accounting profession.

Accepted Answer

A) True 
 B)False

Question 6

For many companies that use December 31 for the year-end, we cannot tell if December 31 was selected because it represents a natural business year or if it was selected to represent a calendar year.

Accepted Answer

A) True 
 B)False

Question 7

Private companies are required to report under Sarbanes-Oxley.

Accepted Answer

A) True 
 B)False

Question 8

Accountants normally recognize revenue when cash is received.

Accepted Answer

A) True 
 B)False

Question 9

Performance indicators for nonbusiness organizations are usually formal budgets and donor restrictions.

Accepted Answer

A) True 
 B)False

Question 10

At the end of the fiscal year, an adjusting entry is made that increases salaries payable and increases salaries expense.This entry is an application of which accounting principle?

Accepted Answer

A)  full disclosure 
B)  materiality 
C)  matching 
D)  realization 
E)  historical cost 
A)  full disclosure 
B)  materiality 
C)  matching 
D)  realization 
E)  historical cost

Question 11

The Sarbanes-Oxley Act has far-reaching consequences for financial reporting and the CPA profession.

Accepted Answer

A) True 
 B)False

Question 12

It would always be conservative to value inventory at market.

Accepted Answer

A) True 
 B)False

Question 13

All important events that influence the prospects for the entity are recorded and therefore are reflected in the financial statements.

Accepted Answer

A) True 
 B)False

Question 14

Many of our present financial statement figures would be misleading if it were not for the going concern assumption.

Accepted Answer

A) True 
 B)False

Question 15

An accounting period that ends when operations are at a low ebb is:

Accepted Answer

A)  a calendar year 
B)  a fiscal year 
C)  the natural business year 
D)  an operating year 
E)  none of the answers are correct 
A)  a calendar year 
B)  a fiscal year 
C)  the natural business year 
D)  an operating year 
E)  none of the answers are correct

Question 16

Other than December, the most popular month for fiscal year-end is:

Accepted Answer

A)  January 
B)  March 
C)  June 
D)  September 
E)  October 
A)  January 
B)  March 
C)  June 
D)  September 
E)  October

Question 17

The accrual basis of accounting recognizes revenue when realized (realization concept) and expenses when incurred (matching concept).

Accepted Answer

A) True 
 B)False

Question 18

Reporting under Sarbanes-Oxley revealed that very few companies had material weaknesses in their controls and processes.

Accepted Answer

A) True 
 B)False

Question 19

The most significant current source of generally accepted accounting principles is the:

Accepted Answer

A)  New York Stock Exchange 
B)  Accounting Principles Board 
C)  Accounting Research Studies 
D)  AICPA committee on Accounting Procedure 
E)  Financial Accounting Standards Board 
A)  New York Stock Exchange 
B)  Accounting Principles Board 
C)  Accounting Research Studies 
D)  AICPA committee on Accounting Procedure 
E)  Financial Accounting Standards Board

Question 20

Which of these measurement attributes is not currently used in practice?

Accepted Answer

A)  historical cost 
B)  relevant cost 
C)  current market value 
D)  current cost 
E)  present value 
A)  historical cost 
B)  relevant cost 
C)  current market value 
D)  current cost 
E)  present value

By law, the setting of accounting standards is the responsibility of the:

The Accounting Principles Board issued Opinions between:

Valuing assets at their liquidation values is not consistent with:

Predictive value, feedback value, and timeliness are ingredients needed to ensure that the information is reliable.

The SEC has the authority to determine generally accepted accounting principles and to regulate the accounting profession.

For many companies that use December 31 for the year-end, we cannot tell if December 31 was selected because it represents a natural business year or if it was selected to represent a calendar year.

Private companies are required to report under Sarbanes-Oxley.

Accountants normally recognize revenue when cash is received.

Performance indicators for nonbusiness organizations are usually formal budgets and donor restrictions.

At the end of the fiscal year, an adjusting entry is made that increases salaries payable and increases salaries expense.This entry is an application of which accounting principle?

The Sarbanes-Oxley Act has far-reaching consequences for financial reporting and the CPA profession.

It would always be conservative to value inventory at market.

All important events that influence the prospects for the entity are recorded and therefore are reflected in the financial statements.

Many of our present financial statement figures would be misleading if it were not for the going concern assumption.

An accounting period that ends when operations are at a low ebb is:

Other than December, the most popular month for fiscal year-end is:

The accrual basis of accounting recognizes revenue when realized (realization concept) and expenses when incurred (matching concept).

Reporting under Sarbanes-Oxley revealed that very few companies had material weaknesses in their controls and processes.

The most significant current source of generally accepted accounting principles is the:

Which of these measurement attributes is not currently used in practice?

Introduction to Financial Statements and Other Financial Reporting Topics

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets; Related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, Utilities, Oil and Gas, Transportation, Insurance, Real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters

Exam 1: Introduction to Financial Reporting

By law, the setting of accounting standards is the responsibility of the:

The Accounting Principles Board issued Opinions between:

Valuing assets at their liquidation values is not consistent with:

Predictive value, feedback value, and timeliness are ingredients needed to ensure that the information is reliable.

The SEC has the authority to determine generally accepted accounting principles and to regulate the accounting profession.

For many companies that use December 31 for the year-end, we cannot tell if December 31 was selected because it represents a natural business year or if it was selected to represent a calendar year.

Private companies are required to report under Sarbanes-Oxley.

Accountants normally recognize revenue when cash is received.

Performance indicators for nonbusiness organizations are usually formal budgets and donor restrictions.

At the end of the fiscal year, an adjusting entry is made that increases salaries payable and increases salaries expense.This entry is an application of which accounting principle?

The Sarbanes-Oxley Act has far-reaching consequences for financial reporting and the CPA profession.

It would always be conservative to value inventory at market.

All important events that influence the prospects for the entity are recorded and therefore are reflected in the financial statements.

Many of our present financial statement figures would be misleading if it were not for the going concern assumption.

An accounting period that ends when operations are at a low ebb is:

Other than December, the most popular month for fiscal year-end is:

The accrual basis of accounting recognizes revenue when realized (realization concept) and expenses when incurred (matching concept).

Reporting under Sarbanes-Oxley revealed that very few companies had material weaknesses in their controls and processes.

The most significant current source of generally accepted accounting principles is the:

Which of these measurement attributes is not currently used in practice?

Introduction to Financial Statements and Other Financial Reporting Topics

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets; Related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, Utilities, Oil and Gas, Transportation, Insurance, Real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters