Question 1

The fourth step in the financial accounting research process may require you to ________.

Accepted Answer

A) cross reference information in the Codification 
B) change or refine your research question 
C) work down the levels of the hierarchy to identify a similar transaction 
D) draft a memo 
A) cross reference information in the Codification 
B) change or refine your research question 
C) work down the levels of the hierarchy to identify a similar transaction 
D) draft a memo

Question 2

IFRS requires that companies disclose information about assumptions and estimates made at the end of the reporting period.

Accepted Answer

A) True 
 B)False

Question 3

Unlike U.S.GAAP,the Basis for Conclusions discussion is not included in the IFRS but is published separately.

Accepted Answer

A) True 
 B)False

Question 4

Financial statement users rely on accounting policies footnote information to compare a company to other firms in the same industry.

Accepted Answer

A) True 
 B)False

Question 5

The accounting policies footnote is ________.

Accepted Answer

A) optional 
B) required by U.S.GAAP 
C) required by auditors 
D) an internal management document 
A) optional 
B) required by U.S.GAAP 
C) required by auditors 
D) an internal management document

Question 6

IFRS and U.S.GAAP have the same disclosure requirements regarding the estimates made at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 7

Cognitive bias is an attitude that includes a questioning mind and critical assessment of evidence.

Accepted Answer

A) True 
 B)False

Question 8

Explain how an accountant would use assumptions and estimates when accounting for property,plant,and equipment.

Accepted Answer

Accountants use assumptions about the pa

Question 9

Numerical references to the Accounting Standards Codification are structured as Section-Paragraph-Topic-Subtopic.

Accepted Answer

A) True 
 B)False

Question 10

The ________ is used to rank the authoritative support for its various accounting standards.

Accepted Answer

A) IFRS Hierarchy 
B) GAAP Hierarchy 
C) Both A & B 
D) Neither A nor B 
A) IFRS Hierarchy 
B) GAAP Hierarchy 
C) Both A & B 
D) Neither A nor B

Question 11

An example of a judgment in accounting for Accounts Receivable is ________.

Accepted Answer

A) the percentage of credit sales that may be uncollectible 
B) the amount a customer paid during the previous month 
C) the decision whether to extend credit to a new customer 
D) the percentage that may be deducted to calculate a sales discount 
A) the percentage of credit sales that may be uncollectible 
B) the amount a customer paid during the previous month 
C) the decision whether to extend credit to a new customer 
D) the percentage that may be deducted to calculate a sales discount

Question 12

In ASC 450-20-35-2,450 represents the ________.

Accepted Answer

A) chapter 
B) topic 
C) section 
D) paragraph 
A) chapter 
B) topic 
C) section 
D) paragraph

Question 13

Terry Fowler is a firm believer in traditional accounting software.Bob Fossey just gave a presentation touting the benefits of cloud accounting software,but Terry wants nothing to do with it.He didn't really listen to the presentation.Terry is exhibiting ________.

Accepted Answer

A) stubborn behavior 
B) overconfidence bias 
C) anchoring bias 
D) confirmatory bias 
A) stubborn behavior 
B) overconfidence bias 
C) anchoring bias 
D) confirmatory bias

Question 14

The Codification subtopics are generally distinguished by accounting area or scope.

Accepted Answer

A) True 
 B)False

Question 15

Accountants must often use judgment when deciding when to recognize revenue.

Accepted Answer

A) True 
 B)False

Question 16

In ASC 450-20-35-2,35 represents the ________.

Accepted Answer

A) chapter 
B) topic 
C) subtopic 
D) section 
A) chapter 
B) topic 
C) subtopic 
D) section

Question 17

The final step in the accounting research process is to communicate the results.

Accepted Answer

A) True 
 B)False

Question 18

Costanos Casino has an industry-specific question.In which topic grouping would the accountant begin his/her research?

Accepted Answer

A) 3XX 
B) 5XX 
C) 7XX 
D) 9XX 
A) 3XX 
B) 5XX 
C) 7XX 
D) 9XX

Question 19

Identify the level of the U.S.GAAP Literature Hierarchy that each item belongs to.

Accepted Answer

The answer of Identify the level of the U.S.GAAP Literature...

Question 20

The process by which an accountant reaches a decision in situations with multiple alternatives is referred to as ________.

Accepted Answer

A) earnings management 
B) GAAP 
C) judgment 
D) financial reporting 
A) earnings management 
B) GAAP 
C) judgment 
D) financial reporting

Exam 3: Judgment and Applied Financial Accounting Research

The fourth step in the financial accounting research process may require you to ________.

IFRS requires that companies disclose information about assumptions and estimates made at the end of the reporting period.

Unlike U.S.GAAP,the Basis for Conclusions discussion is not included in the IFRS but is published separately.

Financial statement users rely on accounting policies footnote information to compare a company to other firms in the same industry.

The accounting policies footnote is ________.

IFRS and U.S.GAAP have the same disclosure requirements regarding the estimates made at the end of the accounting period.

Cognitive bias is an attitude that includes a questioning mind and critical assessment of evidence.

Explain how an accountant would use assumptions and estimates when accounting for property,plant,and equipment.

Numerical references to the Accounting Standards Codification are structured as Section-Paragraph-Topic-Subtopic.

The ________ is used to rank the authoritative support for its various accounting standards.

An example of a judgment in accounting for Accounts Receivable is ________.

In ASC 450-20-35-2,450 represents the ________.

Terry Fowler is a firm believer in traditional accounting software.Bob Fossey just gave a presentation touting the benefits of cloud accounting software,but Terry wants nothing to do with it.He didn't really listen to the presentation.Terry is exhibiting ________.

The Codification subtopics are generally distinguished by accounting area or scope.

Accountants must often use judgment when deciding when to recognize revenue.

In ASC 450-20-35-2,35 represents the ________.

The final step in the accounting research process is to communicate the results.

Costanos Casino has an industry-specific question.In which topic grouping would the accountant begin his/her research?

Identify the level of the U.S.GAAP Literature Hierarchy that each item belongs to.

The process by which an accountant reaches a decision in situations with multiple alternatives is referred to as ________.

The Financial Reporting Environment

Financial Reporting Theory

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

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