ACC 303 Week 1 Quiz

ACC 303 Week 1 Quiz | Homework | Assignment Help | Strayer University 

Question 1

 Presented below are four statements which you are to identify as true or false.

GAAP is the term used to indicate the whole body of FASB

 1.  Authoritative literature.                   

 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements.                   

 3. The primary governmental body that has influence over the FASB is the SEC.                 

 4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard.                  

Question 2

 Presented below are four statements which you are to identify as true or false.

1.                    

The objective of financial statements emphasizes a stewardship approach for reporting financial information.               

2.                    

The purpose of the objective of financial reporting is to prepare a balance sheet, an income statement, a statement of cash flows, and a statement of owners’ or stockholders’ equity.                    

3.                    

Because they are generally shorter, FASB interpretations are subject to less due process, compared to FASB standards.               

4.                    

The objective of financial reporting uses an entity rather than a proprietary approach in determining what information to report.             

Question 3

            To satisfy the stewardship reporting responsibility of management, companies prepare a single set (not multiple sets) of general purpose (not special purpose) financial statements.

To satisfy the stewardship reporting responsibility of management, companies prepare multiple sets of special-purpose statements to meet the information needs of a variety of financial statement users.

o   True

o   False

 Question 4

 Accounting principles are “generally accepted” only when an authoritative accounting rule-making body has established it in an official pronouncement or over time it has been accepted as appropriate because of its universal application.

Accounting principles are "generally accepted" only when

I. an authoritative accounting rule-making body has established it in an official pronouncement.

II. A given practice has been accepted as appropriate because of its universal application.

o   I only.

o   II only.

o   I or II.

o   Neither I nor II.

Question 5

  The Codification’s purpose is to integrate and synthesize existing GAAP-not to create new GAAP.

All of the following are true regarding the FASB Codification except:

o   The Codification was created to simplify user access.

o   The goal of the Codification was to provide one place where all authoritative literature about a particular topic could be found.

o   The purpose of the Codification is to create new GAAP.

o   The Codification changes the way GAAP is documented, presented, and updated.

Question 6

 IFRS includes both International Financial Reporting Standards and International Accounting Standards.

o   True

o   False

 Question 7

 International Financial Reporting Standards preceded International Accounting Standards.

o   True

o   False

 Question 8

 The standard-setting structure used by the International Accounting Standards Board is very similar to that used by the Financial Accounting Standards Board.

o   True

o   False

Question 9

 The rules-based standards of IFRS are more detailed than the simpler, principles-based standards of GAAP.

o   True

o   False

Question 10

 The International Accounting Standards Board has seven members.

o   True

o   False