Question 1

The stated principles of the AICPA Code of Professional Conduct do not include

Accepted Answer

A)  Integrity. 
B)  Optimism. 
C)  Objectivity and Independence. 
D)  Responsibilities.

Question 2

Your accounting instructor allows you to look at his grade book in order to verify the points you have received to date in the final course taken by all accounting majors. While looking at your points, you notice that your best friend's score on the last exam was recorded incorrectly. He actually received a 68 on the test but the score was recorded as an 86 in the grade book. Your friend needs a passing grade in this class in order to graduate. If the grade book were updated to show the correct score, your friend might not have enough points to pass the course.
Required:
Discuss the steps you should take to deal with this ethical dilemma using three ethical criteria. You need not indicate the ethical action you would take.

Accepted Answer

The answer of Your accounting instructor allows you to look...

Question 3

Which of the following statements about the FASB Accounting Standards Codification is false?

Accepted Answer

A)  The Codification is currently the only authoritative source of U.S. GAAP. 
B)  The purpose of creating the Codification was to simplify user access to authoritative U.S. GAAP. 
C)  The framework of the Codification contains six levels, which are increasingly more specific. 
D)  The six levels contained within the Codification framework are hierarchical in nature, such that the higher levels are considered to be more authoritative than the lower levels.

Question 4

The Financial Accounting Standards Board FASB) began in 1973 after the AICPA phased out the Accounting Principles Board APB).

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not considered an ethical issue in accounting?

Accepted Answer

A)  Biased financial statement presentation 
B)  Accelerated revenue recognition 
C)  Earnings manipulation 
D)  Industry practices

Question 6

What are the FASB operating procedures when reviewing whether to issue a new standard?

Accepted Answer

The answer of What are the FASB operating procedures when...

Question 7

What is the responsibility of FASB?

Accepted Answer

The answer of What is the responsibility of FASB?...

Question 8

What is the responsibility of the International Accounting Standards Board?

Accepted Answer

A)  IASB promotes uniform accounting standards among different countries. 
B)  IASB settles accounting disputes between auditors and international companies. 
C)  IASB issues standards which regulate the financial accounting and reporting of multinational corporations and then enforces them through legal channels. 
D)  IASB is to develop a uniform currency in which the financial transactions would be measured.

Question 9

Which of the following is not a decision that external stakeholder's of a company's financial information would make?

Accepted Answer

A)  whether or not to extend credit to the company 
B)  whether or not to hold the company's stock 
C)  whether or not the company should add a new product line 
D)  whether or not to ask for an increase in employees' benefits during union contract negotiations

Question 10

Which of the following statements regarding Standards contained in the FASB Accounting Standards Codification ASC) is true?

Accepted Answer

A)  They have the force of law, and failure to follow them can be prosecuted. 
B)  They apply to financial reporting by all U.S. companies. 
C)  They were created in 2009 when the ASC was created and did not exist prior to that time. 
D)  They have to be approved by the SEC before they become effective.

Question 11

Match between columns
                        Premises:  Reporting standards issued by this organization are legally enforceable.  Failure to adhere to them is a violation of law.
 Reporting standards issued by this organization only apply to companies listed on U.S. securities exchanges.
Reporting standards issued by this organization apply to all U.S. companies, whether publicly traded or privately held.
This organization has the legal authority and the responsibility to oversee financial reporting in the U.S.
Requires 10 out of 16 board members’ approvals before a standard is issued.
This organization is government agency established by the U.S. Congress.

Accepted Answer

The Answer of Securities and Exchange Commission (SEC) and International is...

Question 12

What are the six areas covered in the AICPA Code of Professional Conduct?

Accepted Answer

The answer of What are the six areas covered in...

Question 13

Prior to 2009, which of the following types of FASB Pronouncements carried the highest authority within GAAP by establishing the methods and procedures required on specific accounting issues?

Accepted Answer

A)  Staff Positions 
B)  Statements of Financial Accounting Standards 
C)  Statements of Financial Accounting Concepts 
D)  Technical Bulletins

Question 14

The primary reason that financial accounting and managerial accounting have somewhat different objectives is because they

Accepted Answer

A)  need information in different formats 
B)  provide information for different decisions 
C)  need information in different geographic locations 
D)  need information at different times

Question 15

The agreement in 2002 by the FASB and IASB to develop high quality, compatible accounting standards that could be used by both domestic and cross-border financial reporting was called the

Accepted Answer

A)  International Accounting Standards agreement 
B)  Financial Accounting Standards Board Global agreement 
C)  Norwalk agreement 
D)  United GAAP agreement

Question 16

Which organization has the most legal authority?

Accepted Answer

A)  Financial Accounting Standards Board 
B)  Accounting Standards Executive Committee 
C)  Governmental Accounting Standards Board 
D)  Securities and Exchange Commission

Question 17

What types of resources do companies compete for and why?

Accepted Answer

The answer of What types of resources do companies compete...

Question 18

The Codification is set up as a system of levels starting with sections, topics, and subtopics.

Accepted Answer