83 test bank for intermediate accounting 14th edition

Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Financial Accounting An Introduction. Free Test Bank with Answers for Auditing and Assurance Services Understandin Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Advanced Accounting 12th Edition Test Bank with Answers for Auditing A Business Risk Approach 8th Edition Free Test Bank for Management Accounting with Answers Ngân hàng câu hỏi trắc nghiệm Hệ thống thông tin kế toán, Ngân hàng câu hỏi kèm đáp án đề trắc nghiệm Tài chính kế toán, đề trắc nghiệm Quản trị kế toán, kế toán nâng cao, Đề trắc nghiệm có đáp án Tài chính kế toán, Kế toán kiểm toán, kế toán quản trji Test Bank for Managerial Accounting with Answers Đề trắc nghiệm kế toán, trắc nghiệm tài chính, Test bank for Accounting, Test bank with Answer, Test Bank Financial Accounting

83 Test Bank for Intermediate Accounting 14th Edition True - False Questions

Ethical issues in financial accounting are governed by the AICPA

1. True

2 False

The passage of a new FASB Standards Statement requires the support of five of the seven board members

1. True

2 False

The Securities and Exchange Commission appointed the

Committee on Accounting Procedure

1. True

2 False

Accounting standards are now less likely to require the

recording or disclosure of fair value information

1. True

2 False

The AICPA’s Code of Professional Conduct requires that

members prepare financial statements in accordance with generally accepted accounting principles

1. True

2 False

GAAP is a product of careful logic or empirical findings and are not influenced by political action

1. True

2 False

The FASB’s Codification integrates existing GAAP, and creates new GAAP

1. True

2 False

Users of financial accounting statements have both coinciding and conflicting needs for information of various types

1. True

2 False

An effective process of capital allocation promotes productivity and provides an efficient market for buying and selling

securities and obtaining and granting credit

1. True

2 False

The Public Company Accounting Oversight Board has oversight and enforcement authority and establishes auditing and

independence standards and rules

1. True

2 False

The AICPA created the Accounting Principles Board in 1959

1. True

2 False

Investors are interested in financial reporting because it

provides information that is useful for making decisions

(decision-usefulness approach)

1. True

2 False

The objective of financial reporting is to provide financial

information about the reporting entity that is useful to present and potential equity investors, but not to users who are not investors

1. True

2 False

Financial statements are the principal means through which a company communicates its financial information to those outside it

1. True

2 False

The expectations gap is caused by what the public thinks accountants should do and what accountants think they can

do

1. True

2 False

U.S companies that list overseas are required to use

International Financial Reporting Standards, issued by the International Accounting Standards Board

1. True

2 False

Users of financial reports provided by a company use that

information to make their capital allocation decisions

1. True

2 False

Financial reports in the early 21st century did not provide any information about a company’s soft assets (intangibles)

1. True

2 False

Financial Accounting Concepts set forth fundamental

objectives and concepts that are used in developing future standards of financial accounting and reporting

1. True

2 False

Financial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control a company’s

operations

1. True

2 False

Multiple Choice Questions - Page 1

Accounting principles are "generally accepted" only when

1. a.an authoritative accounting rule-making body has established it in an official pro-nouncement

2 b.it has been accepted as appropriate because of its universal application

3 c.both a and b

4 d.neither a nor b

Primary users for general-purpose financial statements include

1. a.creditors

2 b.employees

3 c.investors

4 d.both creditors and investors

Which organization was responsible for issuing Accounting Research Bulletins?

1. a.Accounting Principles Board

2 b.Committee on Accounting Procedure

3 c.The SEC

4 d.AICPA

An effective capital allocation process

1. a.promotes productivity

2 b.encourages innovation

3 c.provides an efficient market for buying and selling securities

4 d.all of these

The financial statements most frequently provided include all of the following except the

1. a.balance sheet

2 b.income statement

3 c.statement of cash flows

4 d.statement of retained earnings

Financial statements in the early 2000s provide information related to

1. a.nonfinancial measurements

2 b.forward-looking data

3 c.hard assets (inventory and plant assets)

4 d.none of these

A common set of accounting standards and procedures are called

1. a.financial accounting standards

2 b.generally accepted accounting principles

3 c.objectives of financial reporting

4 d.statements of financial accounting concepts

All the following are differences between financial and

managerial accounting in how accounting information is used except to

1. a.plan and control company's operations

2 b.decide whether to invest in the company

3 c.evaluate borrowing capacity to determine the extent of a loan to grant

4 d.All the above

What is due process in the context of standard setting at the FASB?

1. a.FASB operates in full view of the public

2 b.Public hearings are held on proposed accounting standards

3 c.Interested parties can make their views known

4 d.All of the above

Which organization is responsible for issuing Emerging Issues Task Force Statements?

1. a.FASB

2 b.CAP

3 c.APB

4 d.SEC

Why did the AICPA create the Accounting Principles Board?

1. a.The SEC disbanded the previous standard setting organization

2 b.The previous standard setting organization did not provide a structured set of accounting principles

3 c.No such organization existed in the past

4 d.None of the above

A characteristic of generally accepted accounting principles include the following:

1. a.common set of standards and principles

2 b.standards and principles are based federal statutes

3 c.acceptance requires an affirmative vote of Certified Public Accountants

4 d.practices that become accepted for at least a year by all industry members

Which of the following is a general limitation of "general

purpose financial statements"?

1. a.General purpose financial statements may not be the most informative for a specific enterprise

2 b.General purpose financial statements are comparable

3 c.General purpose financial statements are assumed to present fairly the company's financial operations

4 d.None of the above

Whether a business is successful and thrives is determined by

1. a.markets

2 b.free enterprise

3 c.competition

4 d.all of these

Why was it believed that accounting standards that were issued

by the Financial Accounting Standards Board would carry more weight?

1. a.Smaller membership

2 b.FASB board members are well-paid

3 c.FASB board members must be CPAs

4 d.Due process

Characteristics of generally accepted accounting principles include all of the following except

1. a.authoritative accounting the rule-making body established a principle of reporting

2 b.standards are considered useful by the profession

3 c.each principle is approved by the SEC

4 d.practice has become universally accepted over time

The information provided by financial reporting pertains to

1. a.individual business enterprises, rather than to industries or an economy as a whole

or to members of society as consumers

2 b.business industries, rather than to individual enterprises or an economy as a whole

or to members of society as consumers

3 c.individual business enterprises, industries, and an economy as a whole, rather than

to members of society as consumers

4 d.an economy as a whole and to members of society as consumers, rather than to individual enterprises or industries

What is the purpose of Emerging Issues Task Force?

1. a.Provide interpretation of existing standards

2 b.Provide a consensus on how to account for new and unusual financial transactions

3 c.Provide interpretive guidance

4 d.Provide timely guidance on select issues

General-purpose financial statements are the product of

1. a.financial accounting

2 b.managerial accounting

3 c.both financial and managerial accounting

4 d.neither financial nor managerial accounting

How does accounting help the capital allocation process attract investment capital?

1. a.Provides timely, relevant information

2 b.Encourages innovation

3 c.Promotes productivity

4 d.a and b above

Which of the following is not a major challenge facing the

accounting profession?

1. a.Nonfinancial measurements

2 b.Timeliness

3 c.Accounting for hard assets

4 d.Forward-looking information

The passage of a new FASB Standards Statement requires the support of

1. a.all Board members

2 b.three Board members

3 c.four Board members

4 d.five Board members

When making decisions, investors are interested in assessing

1. a.the company’s ability to generate net cash inflows

2 b.management’s ability to protect and enhance the capital providers’ investments

3 c.Both a and b

4 d.the company’s ability to generate net income

What is the objective of financial reporting?

1. a.Provide information that is useful to management in making decisions

2 b.Provide information that clearly portray nonfinancial transactions

3 c.Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors

4 d.Provide information that excludes claims to the resources

Which of the following organizations has been responsible for setting U.S accounting standards?

1. a.Accounting Principles Board

2 b.Committee on Accounting Procedure

3 c.Financial Accounting Standards Board

4 d.All of the above

What is the relationship between the Securities and Exchange Commission and accounting standard setting in the United States?

1. a.The SEC requires all companies listed on an exchange to submit their financial statements to the SEC

2 b.The SEC coordinates with the AICPA in establishing accounting standards

3 c.The SEC has a mandate to establish accounting standards for enterprises under its jurisdiction

4 d.The SEC reviews financial statements for compliance

Accrual accounting is used because

1. a.cash flows are considered less important

2 b.it provides a better indication of ability to generate cash flows than the cash basis

3 c.it recognizes revenues when cash is received and expenses when cash is paid

4 d none of the above

Which of the following represents a form of communication through financial reporting but not through financial

statements?

1. a.Balance sheet

2 b.President's letter

3 c.Income statement

4 d.Notes to financial statements

5 P27.The process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organization’s operations is called

Which perspective is adopted as part of the objective of

general-purpose financial reporting?

1. a.Decision-usefulness perspective

2 b.Proprietary perspective

3 c.Entity perspective

4 d.Financial reporting perspective

The role of the Securities and Exchange Commission in the formulation of accounting principles can be best described as

1. a.consistently primary

2 b.consistently secondary

3 c.sometimes primary and sometimes secondary

4 d.non-existent

Users of financial reports include all of the following except

1. a.creditors

2 b.government agencies

3 c.unions

4 d.All of these are users

63 Free Test Bank for Intermediate Accounting 14th Edition by Kieso Multiple Choice Questions - Page 2

Members of the Financial Accounting Standards Board are

1. a.employed by the American Institute of Certified Public Accountants (AICPA)

2 b.part-time employees

3 c.required to hold a CPA certificate.

4 d.independent of any other organization

The purpose of Statements of Financial Accounting Concepts is

to

1. a.establish GAAP

2 b.modify or extend the existing FASB Standards Statement

3 c.form a conceptual framework for solving existing and emerging problems

4 d.determine the need for FASB involvement in an emerging issue

An organization that has not published accounting standards is the

1. a.American Institute of Certified Public Accountants

2 b.Securities and Exchange Commission

3 c.Financial Accounting Standards Board

4 d.All of these have published accounting standards

The Financial Accounting Foundation

1. a.oversees the operations of the FASB

2 b.oversees the operations of the AICPA

3 c.provides information to interested parties on financial reporting issues

4 d.works with the Financial Accounting Standards Advisory Council to provide informa-tion to interested parties on financial reporting issues

What is a possible danger if politics plays too big a role in

accounting standard setting?

1. a.Accounting standards that are not truly generally accepted

2 b.Individuals may influence the standards

3 c.User groups become active

4 d.The FASB delegates its authority to elected officials

Financial accounting standard-setting in the United States

1. a.can be described as a social process which reflects political actions of various interested user groups as well as a product of research and logic

2 b.is based solely on research and empirical findings

3 c.is a legalistic process based on rules promulgated by governmental agencies

4 d.is democratic in the sense that a majority of accountants must agree with a standard before it becomes enforceable

The Financial Accounting Standards Board employs a "due process" system which

1. a.is an efficient system for collecting dues from members

2 b.enables interested parties to express their views on issues under consideration

3 c.identifies the accounting issues that are the most important

4 d.requires that all accountants must receive a copy of financial standards

What is not a source of pressure that may influence the

accounting standard setting process?

1. a.Congress

2 b.Lobbyist

3 c.CPA firms

4 d.None of the above

The Financial Accounting Standards Board (FASB) was

proposed by the

1. a.American Institute of Certified Public Accountants

2 b.Accounting Principles Board

3 c.Study Group on the Objectives of Financial Statements

4 d.Special Study Group on establishment of Accounting Principles (Wheat Committee)

Companies that are listed on a stock exchange are required to submit their financial statements to the

1. a.AICPA

2 b.APB

3 c.FASB

4 d.SEC

What is "expectation gap"?

1. a.The difference between what the public thinks the accountant is not doing and what the accountant knows they don't do

2 b.The difference between what the public thinks the accountant is doing and what Congress says the accountant is doing

3 c.The difference between what the public thinks the accountant is doing and what the accountant thinks they can do

4 d.The difference between what the accountant is doing and what the Courts say the accountant should be doing

The American Institute of Certified Public Accountants (AICPA) continues to be involved in all of the following except

1. a.developing and enforcing professional ethics

2 b.developing auditing standards

3 c.providing professional education programs

4 d.all of the above

Which of the following pronouncements were issued by the Accounting Principles Board?

1. a.Accounting Research Bulletins

2 b Opinions

3 c Statements of Position

4 d Statements of Financial Accounting Concepts