Question 1

IFRS identifies ________ period-in-time elements.

Accepted Answer

A) four 
B) five 
C) six 
D) seven 
A) four 
B) five 
C) six 
D) seven

Question 2

Identify the element,and whether it is point-in-time or period-of-time.

Accepted Answer

The answer of Identify the element,and whether it is point-in-time...

Question 3

IFRS includes all of the following bases of measurement except ________.

Accepted Answer

A) present value of future cash flows 
B) historical cost 
C) current cost 
D) net realizable value 
A) present value of future cash flows 
B) historical cost 
C) current cost 
D) net realizable value

Question 4

The IASB and FASB share the goal that standards will be based on an agreed set of fundamental ________.

Accepted Answer

A) practices 
B) constraints 
C) standards 
D) concepts 
A) practices 
B) constraints 
C) standards 
D) concepts

Question 5

Identify the three main approaches to expense recognition under U.S.GAAP - provide examples of each.How does IFRS expense recognition principles differ?

Accepted Answer

Under U.S.GAAP,the three main approaches

Question 6

Poseidon Corp is aware that a large portion of receivables may become uncollectible because the customer is in talks for bankruptcy.By choosing not to disclose this information,the information provided in the statements ________.

Accepted Answer

A) is not verifiable 
B) does not faithfully represent the firm's financial position 
C) both A & B 
D) neither A nor B 
A) is not verifiable 
B) does not faithfully represent the firm's financial position 
C) both A & B 
D) neither A nor B

Question 7

Unobservable values cannot be used to report fair value in the financial statements.

Accepted Answer

A) True 
 B)False

Question 8

The major difference between cash and accrual accounting is the timing of revenue and expense recognition.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not considered to be a primary user of financial information for which financial reporting standards are designed?

Accepted Answer

A) supplier 
B) investor 
C) regulator 
D) lender 
A) supplier 
B) investor 
C) regulator 
D) lender

Question 10

The primary distinction between expenses and losses is ________.

Accepted Answer

A) the verifiability of the transactions 
B) the nature of the activities that bring about the transactions 
C) the timing of the transactions 
D) the amount and materiality of the transactions 
A) the verifiability of the transactions 
B) the nature of the activities that bring about the transactions 
C) the timing of the transactions 
D) the amount and materiality of the transactions

Question 11

Changes in equity that result from the company's central business operations are ________.

Accepted Answer

A) revenues and gains 
B) gains and losses 
C) revenues and expenses 
D) losses and expenses 
A) revenues and gains 
B) gains and losses 
C) revenues and expenses 
D) losses and expenses

Question 12

The going concern concept is explicitly stated in the IFRS conceptual framework but not in the U.S.GAAP conceptual framework.

Accepted Answer

A) True 
 B)False

Question 13

The ________ justifies the use of accrual accounting.

Accepted Answer

A) historical cost concept 
B) going concern concept 
C) monetary unit assumption 
D) business entity concept 
A) historical cost concept 
B) going concern concept 
C) monetary unit assumption 
D) business entity concept

Question 14

What is the primary challenge for financial reporting?

Accepted Answer

A) to stay relevant to the needs of investors 
B) to stay relevant to the needs of lenders and creditors 
C) to stay relevant to the needs of other financial statement users 
D) both A & B 
E) all of the above 
A) to stay relevant to the needs of investors 
B) to stay relevant to the needs of lenders and creditors 
C) to stay relevant to the needs of other financial statement users 
D) both A & B 
E) all of the above

Question 15

Dr.Flu uses the cash basis to keep his accounting records.During 2014,he collected $350,000 from clients.At December 31,2013 he had accounts receivable of $100,000.At December 31,2014 he had accounts receivable of $125,000 and unearned revenue of $25,000.What did Dr.Flu earn in service revenue for 2014 using the accrual basis of accounting?

Accepted Answer

A) $275,000 
B) $300,000 
C) $325,000 
D) $350,000 
A) $275,000 
B) $300,000 
C) $325,000 
D) $350,000

Question 16

A purpose of FASB's conceptual framework is to assist preparers,auditors,and users of financial statements.

Accepted Answer

A) True 
 B)False

Question 17

TLR Studio reported earnings per share of $2.11.This surpassed the average analyst forecast of $2.06.This information has ________ to users of financial information.

Accepted Answer

A) confirmatory value 
B) comparable value 
C) consistent value 
D) both A & C 
A) confirmatory value 
B) comparable value 
C) consistent value 
D) both A & C

Question 18

Elements are categorized by whether they are relevant or faithfully representative.

Accepted Answer

A) True 
 B)False

Question 19

The ________ justifies the use of depreciation on buildings.

Accepted Answer

A) economic entity concept 
B) monetary unit assumption 
C) going concern concept 
D) historical cost assumption 
A) economic entity concept 
B) monetary unit assumption 
C) going concern concept 
D) historical cost assumption

Question 20

The conceptual framework indicates that the primary users of financial information are the investors,lenders,and managers.

Accepted Answer

A) True 
 B)False

Exam 2: Financial Reporting Theory

IFRS identifies ________ period-in-time elements.

Identify the element,and whether it is point-in-time or period-of-time.

IFRS includes all of the following bases of measurement except ________.

The IASB and FASB share the goal that standards will be based on an agreed set of fundamental ________.

Identify the three main approaches to expense recognition under U.S.GAAP - provide examples of each.How does IFRS expense recognition principles differ?

Poseidon Corp is aware that a large portion of receivables may become uncollectible because the customer is in talks for bankruptcy.By choosing not to disclose this information,the information provided in the statements ________.

Unobservable values cannot be used to report fair value in the financial statements.

The major difference between cash and accrual accounting is the timing of revenue and expense recognition.

Which of the following is not considered to be a primary user of financial information for which financial reporting standards are designed?

The primary distinction between expenses and losses is ________.

Changes in equity that result from the company's central business operations are ________.

The going concern concept is explicitly stated in the IFRS conceptual framework but not in the U.S.GAAP conceptual framework.

The ________ justifies the use of accrual accounting.

What is the primary challenge for financial reporting?

A purpose of FASB's conceptual framework is to assist preparers,auditors,and users of financial statements.

TLR Studio reported earnings per share of $2.11.This surpassed the average analyst forecast of $2.06.This information has ________ to users of financial information.

Elements are categorized by whether they are relevant or faithfully representative.

The ________ justifies the use of depreciation on buildings.

The conceptual framework indicates that the primary users of financial information are the investors,lenders,and managers.

The Financial Reporting Environment

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters