Question Details

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- 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 objective of general-purpose financial reporting?
a.	A decision-usefulness perspective.
b.	A proprietary perspective.
c.	An entity perspective.
d.	A financial reporting perspective.

	3.	Which of the following is a requirement for an accounting principle to be called "generally accepted"?
a.	An authoritative accounting rule-making body has established it in an official pronouncement.
b.	The principle has been accepted as appropriate because of its universal application.
c.	An authoritative accounting rule-making body has established it and it has been accepted because of its universal application.
d.	None of the answer choices are correct.

	4.	A common set of accounting standards and procedures are called 
a.	financial accounting standards.
b.	generally accepted accounting principles.
c.	objectives of financial reporting.	
d.	statements of financial accounting concepts.

 
	5.	Which of the following is a general limitation of "general purpose financial statements"?
a.	General purpose financial statements may not be the most informative for a specific enterprise.
b.	General purpose financial statements are not comparable.
c.	General purpose financial statements do not fairly present a company's financial operations.
d.	None of the answer choices are correct.



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