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Accounting 3200A - Intermediate Financial Accounting & Reporting I » Spring 2022 » Chapter 1

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Question #1

The IASB's main objective is to develop a single set of standards that have what characteristics?

A. enforceable, high-quality, understandable

B. accrual based, market driven, enforceable

C. accrual based, market driven

D. accrual based, understandable

Question #2

The primary purpose of financial reporting is to provide useful information for decision making to

A. capital market regulators

B. providers of capital

C. management

D. employees

Question #3

Which of the following are among the basic assumptions underlying U.S. GAAP?

A. neutrality, full disclosure, and revenue recognition

B. neutrality, full disclosure, and monetary unit

C. going concern, economic entity, periodicity, and monetary unit

D. economic entity, full disclosure, and revenue recognition

Question #4

In developing standards, the FASB considers the:

A. economic transactions that standards will address, effect on the financial position of constituents

B. economic transactions that standards will address, concerns and opinions of constituents

C. effect on the financial position of constituents, concerns and opinions of constituents

Question #5

Select the four criteria used to determine if an item is recognized in the financial statements according to SFAC 5.

A. Persistence, Quality, Relevance, Definition

B. Definition, Reliability, Relevance, Measurability

C. Reliability, Persistence, Quality, Measurability

Question #6

Which of the following represents the IASB's primary objective?

A. To control the international standard setting process

B. To lower the cost of capital on global markets

C. To develop high quality global standards used to make economic decisions

Question #7

What information regarding an entity's future cash flows are investors and lenders interested in?

A. timing, uncertainty, amount

B. amount, inflation adjusted and timing

C. inflation adjusted and timing

Question #8

Which of the following are among the basic assumptions underlying U.S. GAAP?

A. economic entity, periodicity, going concern

B. cost-effectiveness, fair value, conservatism

C. monetary unit, cost-effectiveness, fair value

Question #9

Before issuing an Accounting Standards Update, the FASB undertakes a series of information-gathering steps including

A. company visits and written comments

B. deliberations and company visits

C. open hearings, deliberations, and written comments

Question #10

According to SFAC 5, the four criteria that must be met for an item to be recognized in the basic financial statements are

A. the item has relevant attributes that are measurable, the item can be valued at fair value, the item can be matched with associated revenues

B. the item can be valued at fair value, the item can be matched with associated revenues, the information about the item is relevant to decision making.

C. the information about the item is reliable, the information about the item is relevant to decision making, the item has relevant attributes that are measurable, the item meets the definition of an element.

Question #11

Which of the following represent(s) an important objective of the IASB?

A. To lower the cost of capital on global markets

B. To develop high quality global standards

C. To control the global standard setting process

Question #12

The four basic accounting assumptions

A. identify asset and liability values, assume the entity will continue to exist, and assume the entity follows proper GAAP standards

B. assume the entity will continue to exist, identify the denomination in which reporting occurs, identify the frequency of reporting, and identify the entity being reported on

C. identify asset and liability values, assume the entity follows proper GAAP standards, and identify the entity being reported on

Question #13

The FASB considers written comments from interested parties before issuing an Accounting Standards Update.

A. False

B. True

Question #14

The IASB's main objective is to develop a single set of global accounting ____ that are high-quality, understandable, and enforceable.

A. measures

B. standards

C. controls

Question #15

What was the purpose of the FASB Accounting Standards Codification project?

A. Reorganize all relevant accounting pronouncements in U.S. GAAP.

B. Integrate international standards with U.S. accounting standards.

C. Issue new accounting pronouncements.

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