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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. accrual based, market driven, enforceable

B. accrual based, market driven

C. enforceable, high-quality, understandable

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. employees

C. providers of capital

D. management

Question #3

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

A. economic entity, full disclosure, and revenue recognition

B. neutrality, full disclosure, and revenue recognition

C. neutrality, full disclosure, and monetary unit

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

Question #4

In developing standards, the FASB considers the:

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

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

C. economic transactions that standards will address, 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 lower the cost of capital on global markets

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

C. To control the international standard setting process

Question #7

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

A. amount, inflation adjusted and timing

B. inflation adjusted and timing

C. timing, uncertainty, amount

Question #8

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

A. monetary unit, cost-effectiveness, fair value

B. cost-effectiveness, fair value, conservatism

C. economic entity, periodicity, going concern

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 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.

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

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 control the global standard setting process

C. To develop high quality global standards

Question #12

The four basic accounting assumptions

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

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 will continue to exist, and assume the entity follows proper GAAP standards

Question #13

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

A. True

B. False

Question #14

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

A. standards

B. controls

C. measures

Question #15

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

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

B. Issue new accounting pronouncements.

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

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