Intermediate Acct 1
CA1-1
1. True.
2. False. Any company claiming compliance with IFRS must comply with all standards and interpretations, including disclosure requirements.
3. False. The SEC is the governmental body that has influence over the FASB, not the IASB.
4. True.
5. False. The IASB has no government mandate and does follow a due process in issuing IFRS.
CA1-3
CA1-3 (Financial Reporting and Accounting Standards) Answer the following multiple-choice questions.
1. GAAP stands for:
ANS: D) generally accepted accounting principles.
2. Accounting standard-setters use the following process in establishing accounting standards:
ANS: (d) Research, discussion paper, exposure draft, standard.
3. GAAP is comprised of:
ANS: (d) any accounting guidance included in the FASB Codification.
4. The authoritative status of the conceptual framework is as follows.
ANS: (a) It is used when there is no standard or interpretation related to the reporting issues under consideration.
5. The objective of financial reporting places most emphasis on:
ANS: (a) reporting to capital providers.
6. General-purpose financial statements are prepared primarily for:
ANS: (b) external users.
7. Economic consequences of accounting standard-setting means:
ANS: (d) accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.
8. The expectations gap is:
ANS: (b) what the public thinks accountants should do and what accountants think they can do.
E2-5
Elements:
(f) Assets (b) Liabilities (i) Equity (c) Investment by owners (k)(d) Distribution to owners (l) (g) (e) (c) Comprehensive income (j)(h) Revenue (h) Expenses (a) Gain (a) Losses
E2-7
(a) Historical cost principle. (j) Full disclosure principle.
(b) Conservatism. (k) Matching principle.
(c) Full disclosure principle. (l) Economic entity assumption.
(d) Matching principle. (m) Periodicity assumption.
(e)
1. True.
2. False. Any company claiming compliance with IFRS must comply with all standards and interpretations, including disclosure requirements.
3. False. The SEC is the governmental body that has influence over the FASB, not the IASB.
4. True.
5. False. The IASB has no government mandate and does follow a due process in issuing IFRS.
CA1-3
CA1-3 (Financial Reporting and Accounting Standards) Answer the following multiple-choice questions.
1. GAAP stands for:
ANS: D) generally accepted accounting principles.
2. Accounting standard-setters use the following process in establishing accounting standards:
ANS: (d) Research, discussion paper, exposure draft, standard.
3. GAAP is comprised of:
ANS: (d) any accounting guidance included in the FASB Codification.
4. The authoritative status of the conceptual framework is as follows.
ANS: (a) It is used when there is no standard or interpretation related to the reporting issues under consideration.
5. The objective of financial reporting places most emphasis on:
ANS: (a) reporting to capital providers.
6. General-purpose financial statements are prepared primarily for:
ANS: (b) external users.
7. Economic consequences of accounting standard-setting means:
ANS: (d) accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.
8. The expectations gap is:
ANS: (b) what the public thinks accountants should do and what accountants think they can do.
E2-5
Elements:
(f) Assets (b) Liabilities (i) Equity (c) Investment by owners (k)(d) Distribution to owners (l) (g) (e) (c) Comprehensive income (j)(h) Revenue (h) Expenses (a) Gain (a) Losses
E2-7
(a) Historical cost principle. (j) Full disclosure principle.
(b) Conservatism. (k) Matching principle.
(c) Full disclosure principle. (l) Economic entity assumption.
(d) Matching principle. (m) Periodicity assumption.
(e)