Question 1

Decision usefulness is a pervasive constraint imposed upon financial accounting information.

Accepted Answer

A) True 
 B)False

Question 2

Match the letter of each element with the appropriate definition.
-Decreases in the equity (net assets)from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period,except those that result from expenses or distributions to owners.

Accepted Answer

A) Assets 
B) Liabilities 
C) Equity 
D) Investments by owners 
E) Distribution to owners
F)Comprehensive income
G)Revenues
H)Expenses
I)Gains
J)Losses 
A) Assets 
B) Liabilities 
C) Equity 
D) Investments by owners 
E) Distribution to owners
F)Comprehensive income
G)Revenues
H)Expenses
I)Gains
J)Losses

Question 3

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 4

Match the letter of each phrase with the appropriate definition.
-Responsible for adopting auditing standards.

Accepted Answer

A) Generally Accepted Accounting Principles (GAAP) 
B) Securities and Exchange Commission (SE
C)  
C) American Institute of Certified Public Accountants (AICP
A)  
D) Accounting Principles Board (AP
B)  
E) Financial Accounting Standards Board (FAS
B) 
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAO
B)  
A) Generally Accepted Accounting Principles (GAAP) 
B) Securities and Exchange Commission (SE
C)  
C) American Institute of Certified Public Accountants (AICP
A)  
D) Accounting Principles Board (AP
B)  
E) Financial Accounting Standards Board (FAS
B) 
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAO
B)

Question 5

Private companies are required to report under Sarbanes-Oxley.

Accepted Answer

A) True 
 B)False

Question 6

The principle that assumes the reader of the financial statements is not interested in the liquidation values is:

Accepted Answer

A) conservatism. 
B) matching. 
C) time period. 
D) realization. 
E) None of the answers are correct. 
A) conservatism. 
B) matching. 
C) time period. 
D) realization. 
E) None of the answers are correct.

Question 7

Using the business entity assumption,the financial statements are prepared separate and distinct from the owners of the entity.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following does not relate to The Public Company Accounting Oversight Board (PCAOB)?

Accepted Answer

A) Two members of the board must be CPAs. 
B) In addition to appointing the five members of the PCAOB,the SEC is responsible for the oversight and enforcement authority over the Board. 
C) The PCAOB consists of five members appointed by the SEC. 
D) The PCAOB is to adopt auditing standards. 
E) The PCAOB is to adopt accounting standards. 
A) Two members of the board must be CPAs. 
B) In addition to appointing the five members of the PCAOB,the SEC is responsible for the oversight and enforcement authority over the Board. 
C) The PCAOB consists of five members appointed by the SEC. 
D) The PCAOB is to adopt auditing standards. 
E) The PCAOB is to adopt accounting standards.

Question 9

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement.
-Requires the accountant to adhere as closely as possible to verifiable data.

Accepted Answer

A) Business entity 
B) Going concern 
C) Time period 
D) Monetary unit 
E) Historical cost
F)Conservatism
G)Realization
H)Consistency
I)Full disclosure
J)Verifiability
K)Materiality
L)Industry practices 
A) Business entity 
B) Going concern 
C) Time period 
D) Monetary unit 
E) Historical cost
F)Conservatism
G)Realization
H)Consistency
I)Full disclosure
J)Verifiability
K)Materiality
L)Industry practices

Question 10

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 11

Web sites are not very useful when performing analysis.

Accepted Answer

A) True 
 B)False

Question 12

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement.
-The primary value that is used for financial statements.

Accepted Answer

A) Business entity 
B) Going concern 
C) Time period 
D) Monetary unit 
E) Historical cost
F)Conservatism
G)Realization
H)Consistency
I)Full disclosure
J)Verifiability
K)Materiality
L)Industry practices 
A) Business entity 
B) Going concern 
C) Time period 
D) Monetary unit 
E) Historical cost
F)Conservatism
G)Realization
H)Consistency
I)Full disclosure
J)Verifiability
K)Materiality
L)Industry practices

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Match the letter of each phrase with the appropriate definition.
-Created by the Securities Exchange Act of 1934.

Accepted Answer

A) Generally Accepted Accounting Principles (GAAP) 
B) Securities and Exchange Commission (SE
C)  
C) American Institute of Certified Public Accountants (AICP
A)  
D) Accounting Principles Board (AP
B)  
E) Financial Accounting Standards Board (FAS
B) 
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAO
B)  
A) Generally Accepted Accounting Principles (GAAP) 
B) Securities and Exchange Commission (SE
C)  
C) American Institute of Certified Public Accountants (AICP
A)  
D) Accounting Principles Board (AP
B)  
E) Financial Accounting Standards Board (FAS
B) 
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAO
B)

Question 15

The IASC does not have authority to enforce its standards,but these standards have been adopted in whole or in part by many countries.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

The most accurate way to account for the success or failure of an entity is to accumulate all transactions from the opening of business until the business eventually liquidates.

Accepted Answer

A) True 
 B)False

Question 18

At the time of originally recording a transaction,historical cost also represents the fair market value.

Accepted Answer

A) True 
 B)False

Question 19

The organization that has by federal law the responsibility to adopt auditing standards is the:

Accepted Answer

A) New York Stock Exchange. 
B) Public Company Accounting Oversight Board. 
C) Accounting Principles Board. 
D) Financial Accounting Standards Board. 
E) AICPA Committee on Accounting Procedure. 
A) New York Stock Exchange. 
B) Public Company Accounting Oversight Board. 
C) Accounting Principles Board. 
D) Financial Accounting Standards Board. 
E) AICPA Committee on Accounting Procedure.

Question 20

Some industry practices lead to accounting reports that do not conform to the general theory that underlies accounting.

Accepted Answer

A) True 
 B)False

Decision usefulness is a pervasive constraint imposed upon financial accounting information.

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

Match the letter of each phrase with the appropriate definition. -Responsible for adopting auditing standards.

Private companies are required to report under Sarbanes-Oxley.

The principle that assumes the reader of the financial statements is not interested in the liquidation values is:

Using the business entity assumption,the financial statements are prepared separate and distinct from the owners of the entity.

Which of the following does not relate to The Public Company Accounting Oversight Board (PCAOB)?

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement. -Requires the accountant to adhere as closely as possible to verifiable data.

The Accounting Principles Board issued Opinions between:

Web sites are not very useful when performing analysis.

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement. -The primary value that is used for financial statements.

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

Match the letter of each phrase with the appropriate definition. -Created by the Securities Exchange Act of 1934.

The IASC does not have authority to enforce its standards,but these standards have been adopted in whole or in part by many countries.

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

The most accurate way to account for the success or failure of an entity is to accumulate all transactions from the opening of business until the business eventually liquidates.

At the time of originally recording a transaction,historical cost also represents the fair market value.

The organization that has by federal law the responsibility to adopt auditing standards is the:

Some industry practices lead to accounting reports that do not conform to the general theory that underlies accounting.

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

Decision usefulness is a pervasive constraint imposed upon financial accounting information.

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

Match the letter of each phrase with the appropriate definition. -Responsible for adopting auditing standards.

Private companies are required to report under Sarbanes-Oxley.

The principle that assumes the reader of the financial statements is not interested in the liquidation values is:

Using the business entity assumption,the financial statements are prepared separate and distinct from the owners of the entity.

Which of the following does not relate to The Public Company Accounting Oversight Board (PCAOB)?

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement. -Requires the accountant to adhere as closely as possible to verifiable data.

The Accounting Principles Board issued Opinions between:

Web sites are not very useful when performing analysis.

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement. -The primary value that is used for financial statements.

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

Match the letter of each phrase with the appropriate definition. -Created by the Securities Exchange Act of 1934.

The IASC does not have authority to enforce its standards,but these standards have been adopted in whole or in part by many countries.

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

The most accurate way to account for the success or failure of an entity is to accumulate all transactions from the opening of business until the business eventually liquidates.

At the time of originally recording a transaction,historical cost also represents the fair market value.

The organization that has by federal law the responsibility to adopt auditing standards is the:

Some industry practices lead to accounting reports that do not conform to the general theory that underlies accounting.

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