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The users of financial accounting statements have coinciding and conflicting Ex. 1—Development of accounting principles. Presented below are three independent, unrelated statements regarding the formulation of generally accepted accounting principles. Each statement contains some incorrect or debatable statement(s). Statement I The users of financial accounting statements have coinciding and conflicting needs for statements ...

Other / Other 12 May 2016

The Financial Accounting Standards Board (FASB) was proposed by the 1. Which organization is responsible for issuing Emerging Issues Task Force Statements? a. The FASB b. The CAP c. The APB d. The SEC 2. The role of the Securities and Exchange Commission in the formulation of accounting principles can be best described as a. consistently primary. b. consistently secondary. c. sometimes primary and sometimes secondary. d. non-exi ...

Other / Other 12 May 2016

A common set of accounting standards and procedures are called 1. Accrual accounting is used because a. cash flows are considered less important. b. it provides a better indication of a company’s ability to generate cash flows than the cash basis. c. it recognizes revenues when cash is received and expenses when cash is paid. d. None of the answer choices are correct. 2. Which perspective is adopted as a part of the obje ...

Other / Other 12 May 2016

What is the purpose of a FASB Staff Position 1. The most significant current source of generally accepted accounting principles is the a. AICPA. b. SEC. c. APB. d. FASB. 2. Which of the following is not a part of generally accepted accounting principles? a. The FASB Interpretations b. The CAP Accounting Research Bulletins c. The APB Opinions d. All of these are part of generally accepted accounting principles. 3. Which of ...

Other / Other 12 May 2016

Ethical issues in financial accounting are governed by the AICPA. TRUE OR FALSE: 1. The expectations gap is due to the difference between what the public thinks accountants should do and what accountants think they can do. 2. Financial reports in the early 21st century did not provide any information about a company’s soft assets (intangibles). 3. Accounting standards are now less likely to require the recording or disclo ...

Other / Other 12 May 2016

What is the purpose of Emerging Issues Task Force 1. A characteristic of generally accepted accounting principles include: a. a common set of standards and principles. b. standards and principles are based a federal statutes. c. acceptance requires an affirmative vote of Certified Public Accountants. d. practices that become accepted for at least a year by all industry members.   2. Characteristics of generally accepted accou ...

Other / Other 12 May 2016

Which of these statements regarding the IFRS and U.S. GAAP is correct 1. Authoritative standards for IFRS include: a. International Financial Reporting Standards only. b. International Financial Reporting Standards and International Accounting Standards only. c. International Financial Reporting Standards, International Accounting Standards and U.S. GAAP only. d. International Financial Reporting Standards, International Accounting Stan ...

Other / Other 12 May 2016

Which of the following is true of generally accepted accounting principles 1. Which of the following organizations has not published accounting standards? a. American Institute of Certified Public Accountants. b. Securities and Exchange Commission. c. Financial Accounting Standards Board. d. All of these have published accounting standards. 2. The purpose of Statements of Financial Accounting Concepts is to a. establish GAAP. b. ...

Other / Other 12 May 2016

Which of the following will be of interest to investors in decision-making? 1. Financial statements in the early 2000s provide information related to a. nonfinancial measurements. b. forward-looking data. c. hard assets (inventory and plant assets). d. None of these answer choices are correct. 2. Which of the following is not a major challenge facing the accounting profession? a. Nonfinancial measurements. b. Timeliness. c. Acco ...

Other / Other 12 May 2016

The FASB’s Codification creates a new set of GAAP. TRUE OR FALSE: 1. The AICPA created the Accounting Principles Board in 1959. 2. The FASB’s Codification creates a new set of GAAP. 3. The AICPA’s Code of Professional Conduct requires that members prepare financial statements in accordance with generally accepted accounting principles. 4. GAAP is a product of careful logic or empirical findings and is not ...

Other / Other 12 May 2016