Term
T or F
Although the FASB intends to develop a conceptual framework, no Statements of Financial Accounting Concepts have been issued to date. |
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Definition
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Term
T or F
Accounting standards are a product of careful logic or empirical findings and are not influenced by political action. |
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Definition
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Term
T or F
Financial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organiza-tion's operations. |
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Definition
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Term
T or F
Some generally accepted accounting principles have simply been accepted as appropriate because of their universal application rather than due to the action of an authoritative accounting rule-making body. |
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Definition
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Term
T or F
Users of financial accounting statements have both coinciding and conflicting needs for information of various types. |
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Definition
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Term
T or F
Currently, both U.S. GAAP and the International Financial Reporting Standards are acceptable for international use. |
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Definition
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Term
T or F
Financial statements are the principal means through which financial information is communicated to those outside an enterprise. |
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Definition
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Term
| Which of the following is not a part of generally accepted accounting principles? |
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Definition
A. FASB Interpretations
B. CAP Accounting Research Bulletins
C. APB Opinions
D. All of these are part of generally accepted accounting principles. |
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Term
| A characteristic of generally accepted accounting principles include the following |
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Definition
| A. common set of standards and principles |
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Term
| A common set of accounting standards and procedures are called |
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Definition
| generally accepted accounting principles |
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Term
Characteristics of generally accepted accounting principles include all of the following except
Characteristics of generally accepted accounting principles include all of the following except
Characteristics of generally accepted accounting principles include all of the following except
Characteristics of generally accepted accounting principles include all of the following except
Characteristics of generally accepted accounting principles include all of the following except
Characteristics of generally accepted accounting principles include all of the following except |
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Definition
| each principle is approved by the SEC. |
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Term
| Financial accounting standard-setting in the United States |
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Definition
| 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. |
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Term
| General-purpose financial statements are the product of |
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Definition
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Term
| One objective of financial reporting is to provide |
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Definition
| information that is useful in assessing cash flow prospects. |
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Term
| The American Institute of Certified Public Accountants (AICPA) continues to be involved in all of the following except |
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Definition
| developing auditing standards |
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Term
| The Financial Accounting Standards Board (FASB) was proposed by the |
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Definition
| Special Study Group on establishment of Accounting Principles (Wheat Committee). |
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Term
| The major distinction between the Financial Accounting Standards Board (FASB) and its predecessor, the Accounting Principles Board (APB), is |
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Definition
| all members of the FASB are fully remunerated, serve full time, and are independent of any companies or institutions. |
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Term
| The passage of a new FASB Standards Statement requires the support of |
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Definition
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Term
| The purpose of the Emerging Issues Task Force is to |
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Definition
| issue statements which reflect a consensus on how to account for new and unusual financial transactions that need to be resolved quickly. |
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Term
| Users of financial reports include all of the following except |
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Definition
A. creditors.
B. government agencies.
C. unions.
D. All of these are users |
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Term
| What is a possible danger if politics plays too big a role in accounting standard setting? |
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Definition
| Accounting standards that are not truly generally accepted. |
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Term
| What would be an advantage of having all countries adopt and follow the same accounting standards? |
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Definition
B. Comparability.
C. Lower preparation costs |
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Term
| What is the purpose of Emerging Issues Task Force? |
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Definition
| Provide a consensus on how to account for new and unusual financial transactions. |
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Term
| Whether a business is successful and thrives is determined by |
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Definition
A. markets.
B. free enterprise.
C. competition.
D. all of these. |
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Term
| Which of the following is an ethical concern of accountants? |
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Definition
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Term
| Which of the following organizations has been responsible for setting U.S. accounting standards? |
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Definition
A. Accounting Principles Board.
B. Committee on Accounting Procedure.
C. Financial Accounting Standards Board.
D. All of the above. |
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Term
| Which organization is responsible for issuing Emerging Issues Task Force Statements? |
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Definition
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Term
T or F
FASB Technical Bulletins are more authoritative than FASB Standards and Interpretations. |
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Definition
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Term
T or F
Financial Accounting Concepts set forth fundamental objectives and concepts that are used in developing future standards of financial accounting and reporting. |
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Definition
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Term
T or F
The AICPA’s Code of Professional Conduct requires that members prepare financial statements in accordance with generally accepted accounting principles. |
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Definition
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Term
T or F
Users of the financial information provided by a company use that information to make capital allocation decisions. |
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Definition
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Term
T or F
An effective process of capital allocation promotes productivity and provides an efficient market for buying and selling securities and obtaining and granting credit. |
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Definition
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Term
T or F
Financial statements are the principal means through which financial information is communicated to those outside an enterprise |
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Definition
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Term
| Which of the following is not a part of generally accepted accounting principles? |
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Definition
FASB Interpretations
B. CAP Accounting Research Bulletins
C. APB Opinions
D. All of these are part of generally accepted accounting principles. |
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Term
| Accrual accounting is used because |
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Definition
| it provides a better indication of ability to generate cash flows than the cash basis. |
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Term
| All the following are differences between financial and managerial accounting in how accounting information is used except to |
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Definition
A. plan and control company's operations.
B. decide whether to invest in the company.
C. evaluate borrowing capacity to determine the extent of a loan to grant.
D. All the above. |
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Term
| An organization that has not published accounting standards is the |
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Definition
American Institute of Certified Public Accountants.
B. Securities and Exchange Commission.
C. Financial Accounting Standards Board.
D. All of these have published accounting standards |
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Term
| The financial statements most frequently provided include all of the following except the |
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Definition
| statement of retained earnings |
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Term
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Definition
| are not expected to have a significant impact on financial reporting in general and provide guidance when it does not conflict with any broad fundamental accounting principle. |
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Term
| One objective of financial reporting is to provide |
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Definition
| information that is useful in assessing cash flow prospects. |
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Term
| Rule 203 of the Code of Professional Conduct address |
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Definition
| financial statements should be based on generally accepted accounting principles. |
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Term
| The Financial Accounting Foundation |
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Definition
| oversees the operations of the FASB. |
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Term
| The information provided by financial reporting pertains to |
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Definition
| individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers. |
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Term
| The passage of a new FASB Standards Statement requires the support of |
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Definition
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Term
| The purpose of Statements of Financial Accounting Concepts is to |
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Definition
| form a conceptual framework for solving existing and emerging problems. |
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Term
| Users of financial reports include all of the following except |
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Definition
A. creditors.
B. government agencies.
C. unions.
D. All of these are users. |
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Term
| What is a major objective of financial reporting? |
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Definition
| Provide information that clearly portrays the economic resources of an enterprise. |
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Term
| What would be an advantage of having all countries adopt and follow the same accounting standards? |
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Definition
B. Comparability.
C. Lower preparation costs. |
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Term
| What is the purpose of a FASB Staff Position? |
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Definition
| Provide interpretive guidance. |
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Term
| Which of the following is not considered a component of generally accepted accounting principles? |
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Definition
| Articles published in CPA journals. |
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Term
| Which of the following statements is not an objective of financial reporting? |
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Definition
| Provide information on the liquidation value of an enterprise. |
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Term
| Which of the following is not a publication of the FASB? |
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Definition
| Accounting Research Bulletins |
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Term
| Which organization was responsible for issuing Accounting Research Bulletins? |
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Definition
| Committee on Accounting Procedure. |
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