Question 1

The asset/liability approach emphasizes matching to determine what assets and liabilities should be reflected on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

Pronouncements issued by the Committee on Accounting Procedures:

Accepted Answer

A)  Dealt with specific accounting and reporting problems.
B)  Were based on exposure drafts and public comment letters.
C)  Originated from congressional studies and SEC directives.
D)  Were the outcome of research studies and a theoretical framework.E) B) and D)
F) All of the above

Question 3

Primecoat Corporation could disseminate its annual financial statements two days earlier if it shifted substantial human resources from other operations to the annual report project.Management decided the value of the earlier report was not worth the added commitment of resources.The concept demonstrated is:

Accepted Answer

A)  Timeliness.
B)  Materiality.
C)  Relevance.
D)  Cost-effectiveness.E) All of the above
F) A) and D)

Question 4

The most political issue in the FASB's most recent deliberations and amendments to GAAP on business combinations was:

Accepted Answer

A)  The negative effects on subsequent earnings of amortizing goodwill if firms were required to use the purchase method of accounting for the combination.
B)  The negative effects on subsequent earnings of amortizing goodwill if firms were required to use the pooling method of accounting for the combination.
C)  The unrealistic balance sheet assets that would be created if firms were required to use the purchase method of accounting for the combination.
D)  The unrealistic balance sheet assets that would be created if firms were required to use the pooling method of accounting for the combination.E) A) and C)
F) All of the above

Question 5

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 6

The conceptual framework's qualitative characteristic of faithful representation includes:

Accepted Answer

A)  Predictive value.
B)  Neutrality.
C)  Confirmatory value.
D)  Timeliness.E) C) and D)
F) B) and D)

Question 7

Accounting standard-setting has been characterized as:

Accepted Answer

A)  A political process.
B)  Using the scientific method.
C)  Pure deductive reasoning.
D)  Pure inductive reasoning.E) A) and C)
F) C) and D)

Question 8

Mega Loan Company has very stringent credit requirements and,accordingly,has negligible losses from uncollectible accounts.The company's independent accountants did not protest when,contrary to GAAP,the company recorded bad debt expense only when specific accounts were determined to be uncollectible,rather than use an allowance for uncollectible accounts.The concept demonstrated is:

Accepted Answer

A)  Comparability.
B)  Faithful representation.
C)  Cost-effectiveness.
D)  Materiality.E) C) and D)
F) A) and D)

Question 9

Net income equals:

Accepted Answer

A)  Assets minus liabilities.
B)  Revenues minus cost of goods sold.
C)  Revenues minus expenses.
D)  Cash receipts minus cash payments.E) None of the above
F) B) and D)

Question 10

When there is agreement between a measure or description and the phenomenon it purports to represent,information possesses which characteristic?

Accepted Answer

A)  Verifiability.
B)  Predictive value.
C)  Faithful representation.
D)  Timeliness.E) None of the above
F) A) and D)

Question 11

What is the EITF and what is its purpose?

Accepted Answer

The Emerging Issues Task Force (EITF)act...

Question 12

The recognition of which of the following expenses exemplifies the application of matching expenses with the revenues they produced?

Accepted Answer

A)  President's salary.
B)  Research and development.
C)  Cost of goods sold.
D)  Advertising.E) A) and B)
F) B) and C)

Question 13

The primary professional organization for those accountants working in industry is the:

Accepted Answer

A)  AAA.
B)  AICPA.
C)  IIA.
D)  IMA.E) A) and C)
F) All of the above

Question 14

External decision makers would not look primarily to financial accounting information to assist them in making decisions on:

Accepted Answer

A)  Granting credit.
B)  Capital budgeting.
C)  Selecting stocks.
D)  Mergers and acquisitions.E) A) and D)
F) A) and C)

Question 15

One of the elements that many believe distinguishes a profession from other occupations is the acceptance of responsibility by its members for the interests of those it serves,which is often articulated in:

Accepted Answer

A)  Its conceptual framework.
B)  Its code of ethics.
C)  Federal laws.
D)  State laws.E) C) and D)
F) A) and C)

Question 16

Compute the cash balance at the end of the first year for Alpaca Corporation.

Accepted Answer

The answer of Compute the cash balance at the end...

Question 17

List and briefly describe the five measurement attributes used commonly in current GAAP.

Accepted Answer

a.Historical cost:the amount given or re...

Question 18

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 19

List the four financial statements most frequently provided to external users.

Accepted Answer

Balance sheet,Income...

Question 20

The International Accounting Standards Board:

Accepted Answer

A)  Was the predecessor to the IASC.
B)  Can overrule the FASB when their policies disagree.
C)  Promotes the use of high-quality,understandable global accounting standards.
D)  Has its headquarters in Geneva.E) A) and B)
F) B) and C)

Exam 1: Environment and Theoretical Structure of Financial Accounting

Net income equals:

Correct Answer
verified

Compute the cash balance at the end of the first year for Alpaca Corporation.

Correct Answer
verified

List and briefly describe the five measurement attributes used commonly in current GAAP.

Correct Answer
verified
a.Historical cost:the amount given or re...
View Answer

One of the elements that many believe distinguishes a profession from other occupations is the acceptance of responsibility by its members for the interests of those it serves,which is often articulated in:

Correct Answer
verified

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Correct Answer
verified

List the four financial statements most frequently provided to external users.

Correct Answer
verified
Balance sheet,Income...
View Answer

The recognition of which of the following expenses exemplifies the application of matching expenses with the revenues they produced?

Correct Answer
verified

The conceptual framework's qualitative characteristic of faithful representation includes:

Correct Answer
verified

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Correct Answer
verified

The primary professional organization for those accountants working in industry is the:

Correct Answer
verified

What is the EITF and what is its purpose?

Correct Answer
verified
The Emerging Issues Task Force (EITF)act...
View Answer

The most political issue in the FASB's most recent deliberations and amendments to GAAP on business combinations was:

Correct Answer
verified

Correct Answer
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When there is agreement between a measure or description and the phenomenon it purports to represent,information possesses which characteristic?

Correct Answer
verified

The asset/liability approach emphasizes matching to determine what assets and liabilities should be reflected on the balance sheet.

Correct Answer
verified

External decision makers would not look primarily to financial accounting information to assist them in making decisions on:

Correct Answer
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The International Accounting Standards Board:

Correct Answer
verified

Correct Answer
verified

Accounting standard-setting has been characterized as:

Correct Answer
verified

Pronouncements issued by the Committee on Accounting Procedures:

Correct Answer
verified

Exam 1: Environment and Theoretical Structure of Financial Accounting

Net income equals:

Correct AnswerverifiedShow Answer

Compute the cash balance at the end of the first year for Alpaca Corporation.

Correct AnswerverifiedShow Answer

List and briefly describe the five measurement attributes used commonly in current GAAP.

Correct Answerverifieda.Historical cost:the amount given or re...View AnswerShow Answer

One of the elements that many believe distinguishes a profession from other occupations is the acceptance of responsibility by its members for the interests of those it serves,which is often articulated in:

Correct AnswerverifiedShow Answer

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Correct AnswerverifiedShow Answer

List the four financial statements most frequently provided to external users.

Correct AnswerverifiedBalance sheet,Income...View AnswerShow Answer

The recognition of which of the following expenses exemplifies the application of matching expenses with the revenues they produced?

Correct AnswerverifiedShow Answer

The conceptual framework's qualitative characteristic of faithful representation includes:

Correct AnswerverifiedShow Answer

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Correct AnswerverifiedShow Answer

The primary professional organization for those accountants working in industry is the:

Correct AnswerverifiedShow Answer

What is the EITF and what is its purpose?

Correct AnswerverifiedThe Emerging Issues Task Force (EITF)act...View AnswerShow Answer

The most political issue in the FASB's most recent deliberations and amendments to GAAP on business combinations was:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When there is agreement between a measure or description and the phenomenon it purports to represent,information possesses which characteristic?

Correct AnswerverifiedShow Answer

The asset/liability approach emphasizes matching to determine what assets and liabilities should be reflected on the balance sheet.

Correct AnswerverifiedShow Answer

External decision makers would not look primarily to financial accounting information to assist them in making decisions on:

Correct AnswerverifiedShow Answer

The International Accounting Standards Board:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Accounting standard-setting has been characterized as:

Correct AnswerverifiedShow Answer

Pronouncements issued by the Committee on Accounting Procedures:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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a.Historical cost:the amount given or re...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Balance sheet,Income...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Emerging Issues Task Force (EITF)act...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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