Question 1

The process of reporting an economic event in the financial statements is known as ________.

Accepted Answer

A) recording 
B) writing 
C) recognition 
D) transcribing 
A) recording 
B) writing 
C) recognition 
D) transcribing

Question 2

Identify the assumption represented in each scenario,the decide if it is satisfied or violated.

Accepted Answer

The answer of Identify the assumption represented in each scenario,the...

Question 3

U.S.GAAP identifies ________ period-in-time elements.

Accepted Answer

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

Question 4

Caesar & Company is planning a major expansion,and is in negotiations with their bank for a loan.The bank requested that Caesar & Co provide them with financial statements as soon as possible after the end of the year.Caesar & Co has several suppliers that are slow to submit invoices,so they are considering making estimates for the amounts associated with those liabilities in order to expedite the preparation of the financial statements for the bank.Discuss the qualitative characteristics that they need to consider.

Accepted Answer

This will be a trade-off between verifia

Question 5

The ________ ignores inflation.

Accepted Answer

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

Question 6

Information has predictive value if it provides feedback about prior evaluations.

Accepted Answer

A) True 
 B)False

Question 7

________ means that a group of reasonably informed financial statement users are able to reach a consensus decision that reported information is a faithful representation of an underlying economic event.

Accepted Answer

A) Comparability 
B) Verifiability 
C) Understandability 
D) Freedom from error 
A) Comparability 
B) Verifiability 
C) Understandability 
D) Freedom from error

Question 8

TNT Inc charges $125 per month for a storage unit.In the first quarter of the year,they collected $6,125.Ten customers pre-paid for three months rental in January,seven customers pre-paid for two months rental in February,and five customers paid for one month in March.Using the cash basis of accounting,TNT will recognize ________ in revenue for January and ________ using the accrual basis.

Accepted Answer

A) $6,125,$3,750 
B) $3,750,$6,125 
C) $1,250,$3,750 
D) $3,750,$1,250 
A) $6,125,$3,750 
B) $3,750,$6,125 
C) $1,250,$3,750 
D) $3,750,$1,250

Question 9

IFRS and U.S.GAAP both identify assets as ________ elements.

Accepted Answer

A) phase-in-time 
B) period-of-time 
C) point-in-time 
D) piece-of-time 
A) phase-in-time 
B) period-of-time 
C) point-in-time 
D) piece-of-time

Question 10

Heavenly Honey,Inc.reported revenue of $250,000 in its accrual based income statement for the year ended December 31,2014.Additional information from the books:
   What would Heavenly Honey's revenue be under the cash basis of accounting?

Accepted Answer

$250,000 +

Question 11

Financial statements should provide all financial information that is relevant and faithfully representative within the limitations of the ________ constraint.

Accepted Answer

A) benefit 
B) materiality 
C) usefulness 
D) cost 
A) benefit 
B) materiality 
C) usefulness 
D) cost

Question 12

Identify the measurement base described in each definition,then indicate whether it applies to U.S.GAAP,IFRS,or both.

Accepted Answer

The answer of Identify the measurement base described in each...

Question 13

When developing a new proposed accounting standard,after FASB has determined that the proposed standard meets the objective of financial reporting,the next step in the development process is to ________.

Accepted Answer

A) determine which elements of the financial statements are affected by the proposed standard 
B) consider whether the proposed standard possesses the qualitative characteristics that make accounting information useful 
C) weigh constraints on issuing the new standard,which may deter requiring the new standards 
D) identify recognition and measurement concepts used to support the proposed standard 
A) determine which elements of the financial statements are affected by the proposed standard 
B) consider whether the proposed standard possesses the qualitative characteristics that make accounting information useful 
C) weigh constraints on issuing the new standard,which may deter requiring the new standards 
D) identify recognition and measurement concepts used to support the proposed standard

Question 14

________ is the amount of cash that the firm actually paid to acquire an asset.

Accepted Answer

A) Current market value 
B) Current cost 
C) Historical cost 
D) Net realizable value 
A) Current market value 
B) Current cost 
C) Historical cost 
D) Net realizable value

Question 15

Which of the following is not an approach to determine when to report an expense?

Accepted Answer

A) systematic allocation 
B) when incurred 
C) matching 
D) net realizable value 
A) systematic allocation 
B) when incurred 
C) matching 
D) net realizable value

Question 16

The cost constraint means that an item is not recognized in the financial statements unless its omission would significantly influence the judgment of an informed user.

Accepted Answer

A) True 
 B)False

Question 17

Which underlying assumption is violated if the owner's personal residence is included on the company balance sheet?

Accepted Answer

A) monetary unit assumption 
B) periodicity assumption 
C) economic entity concept 
D) common sense assumption 
A) monetary unit assumption 
B) periodicity assumption 
C) economic entity concept 
D) common sense assumption

Question 18

According to U.S.GAAP,period-of-time elements include investments by owners,revenues,comprehensive income,and others.

Accepted Answer

A) True 
 B)False

The process of reporting an economic event in the financial statements is known as ________.

Identify the assumption represented in each scenario,the decide if it is satisfied or violated.

U.S.GAAP identifies ________ period-in-time elements.

The ________ ignores inflation.

Information has predictive value if it provides feedback about prior evaluations.

________ means that a group of reasonably informed financial statement users are able to reach a consensus decision that reported information is a faithful representation of an underlying economic event.

IFRS and U.S.GAAP both identify assets as ________ elements.

Heavenly Honey,Inc.reported revenue of $250,000 in its accrual based income statement for the year ended December 31,2014.Additional information from the books: What would Heavenly Honey's revenue be under the cash basis of accounting?

Financial statements should provide all financial information that is relevant and faithfully representative within the limitations of the ________ constraint.

Identify the measurement base described in each definition,then indicate whether it applies to U.S.GAAP,IFRS,or both.

When developing a new proposed accounting standard,after FASB has determined that the proposed standard meets the objective of financial reporting,the next step in the development process is to ________.

________ is the amount of cash that the firm actually paid to acquire an asset.

Which of the following is not an approach to determine when to report an expense?

The cost constraint means that an item is not recognized in the financial statements unless its omission would significantly influence the judgment of an informed user.

Which underlying assumption is violated if the owner's personal residence is included on the company balance sheet?

According to U.S.GAAP,period-of-time elements include investments by owners,revenues,comprehensive income,and others.

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

Exam 2: Financial Reporting Theory

The process of reporting an economic event in the financial statements is known as ________.

Identify the assumption represented in each scenario,the decide if it is satisfied or violated.

U.S.GAAP identifies ________ period-in-time elements.

The ________ ignores inflation.

Information has predictive value if it provides feedback about prior evaluations.

________ means that a group of reasonably informed financial statement users are able to reach a consensus decision that reported information is a faithful representation of an underlying economic event.

IFRS and U.S.GAAP both identify assets as ________ elements.

Heavenly Honey,Inc.reported revenue of $250,000 in its accrual based income statement for the year ended December 31,2014.Additional information from the books: What would Heavenly Honey's revenue be under the cash basis of accounting?

Financial statements should provide all financial information that is relevant and faithfully representative within the limitations of the ________ constraint.

Identify the measurement base described in each definition,then indicate whether it applies to U.S.GAAP,IFRS,or both.

When developing a new proposed accounting standard,after FASB has determined that the proposed standard meets the objective of financial reporting,the next step in the development process is to ________.

________ is the amount of cash that the firm actually paid to acquire an asset.

Which of the following is not an approach to determine when to report an expense?

The cost constraint means that an item is not recognized in the financial statements unless its omission would significantly influence the judgment of an informed user.

Which underlying assumption is violated if the owner's personal residence is included on the company balance sheet?

According to U.S.GAAP,period-of-time elements include investments by owners,revenues,comprehensive income,and others.

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