financial accounting
21. Generally accepted accounting principles
c. derive their credibility and authority from general recognition and acceptance by the accounting profession.
22. A soundly developed conceptual framework of concepts and objectives should
d. all of these.
23. Which of the following (a-c) are not true concerning a conceptual framework in account-ing?
c. It should be based on fundamental truths that are derived from the laws of nature.
S24. Which of the following is not a benefit associated with the FASB Conceptual Framework Project?
d. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply.
25. In the conceptual framework for financial reporting, what provides "the why"--the goals and purposes of accounting?
d. Objectives of financial reporting
26. The underlying theme of the conceptual framework is
a. decision usefulness.
27. Which of the following is not an objective of financial reporting?
d. All of these are objectives of financial reporting.
P28. The objectives of financial reporting include all of the following except to provide information that
a. is useful to the Internal Revenue Service in allocating the tax burden to the business community. 29. Decision makers vary widely in the types of decisions they make, the methods of decision making they employ, the information they already possess or can obtain from other sources, and their ability to process information. Consequently, for information to be useful there must be a linkage between these users and the decisions they make. This link is
c. understandability.
30. The overriding criterion by which accounting information can be judged is that of
a. usefulness for decision making.
31. The two primary qualities that make accounting information useful for decision making are
c. relevance and reliability. 32. Accounting information is considered to be relevant when it
b.
c. derive their credibility and authority from general recognition and acceptance by the accounting profession.
22. A soundly developed conceptual framework of concepts and objectives should
d. all of these.
23. Which of the following (a-c) are not true concerning a conceptual framework in account-ing?
c. It should be based on fundamental truths that are derived from the laws of nature.
S24. Which of the following is not a benefit associated with the FASB Conceptual Framework Project?
d. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply.
25. In the conceptual framework for financial reporting, what provides "the why"--the goals and purposes of accounting?
d. Objectives of financial reporting
26. The underlying theme of the conceptual framework is
a. decision usefulness.
27. Which of the following is not an objective of financial reporting?
d. All of these are objectives of financial reporting.
P28. The objectives of financial reporting include all of the following except to provide information that
a. is useful to the Internal Revenue Service in allocating the tax burden to the business community. 29. Decision makers vary widely in the types of decisions they make, the methods of decision making they employ, the information they already possess or can obtain from other sources, and their ability to process information. Consequently, for information to be useful there must be a linkage between these users and the decisions they make. This link is
c. understandability.
30. The overriding criterion by which accounting information can be judged is that of
a. usefulness for decision making.
31. The two primary qualities that make accounting information useful for decision making are
c. relevance and reliability. 32. Accounting information is considered to be relevant when it
b.