Test bank intermediate accounting 14th edition kieso

AICPA b. FASB c. IASB d. An organization that has not published accounting standards is the a. Securities and Exchange Commission. All of these have published accounting standards. The purpose of Statements of Financial Accounting Concepts is to a. Members of the Financial Accounting Standards Board are a. Exposure Draft 2. Statement of Financial Accounting Standards 3. Preliminary Views The chronological order in which these items are released is as follows: a.

Generally accepted accounting principles a. The most significant current source of generally accepted accounting principles is the a. Which of the following is not a part of generally accepted accounting principles? FASB Interpretations b. APB Opinions d. All of these are part of generally accepted accounting principles. Which of the following publications does not qualify as a statement of generally accepted accounting principles?

Statements of financial standards issued by the FASB b. Accounting interpretations issued by the FASB c. Rule of the Code of Professional Conduct addresses: a. Which of the following is not considered a component of generally accepted accounting principles? Widely recognized industry practices. Articles published in CPA journals. Financial accounting standard-setting in the United States a.

The purpose of the International Accounting Standards Board is to a. What is not a source of pressure that may influence the accounting standard setting process? CPA firms. What is a possible danger if politics plays too big a role in accounting standard setting? Accounting standards that are not truly generally accepted.

Individuals may influence the standards. User groups become active. The FASB delegates its authority to elected officials. The difference between what the public thinks the accountant is doing and what Congress says the accountant is doing.

The difference between what the public thinks the accountant is doing and what the accountant thinks they can do. The difference between what the accountant is doing and what the Courts say the accountant should be doing. What is not a reason that accounting standards may differ across countries? Past Practice. What would be an advantage of having all countries adopt and follow the same accounting standards? Lower preparation costs.

Which of the following is an ethical concern of accountants? Earnings manipulation. Conservative accounting. Industry practices.

The standard-setting structure used by the International Accounting Standards Board is very similar to that used by the Financial Accounting Standards Board. The rules-based standards of IFRS are more detailed than the simpler, principles-based standards of U.

Authoritative standards for IFRS include: a. International Financial Reporting Standards only. GAAP only. GAAP is correct? GAAP d. Both U. GAAP tends to be more complex. Standing Interpretations Committee b. Standards Advisory Council c. Standards Comparison Committee d. Why would it be advantageous for U.

What is the difference between principles-based and rules-based accounting rules? A soundly developed conceptual framework enables the FASB to issue more useful and consistent pronouncements over time.

A conceptual framework is a coherent system of concepts that flow from an objective. The first level of the conceptual framework identifies the recognition, measurement, and disclosure concepts used in establishing accounting standards. The objective of financial reporting is the foundation of the conceptual framework. Users of financial statements are assumed to need no knowledge of business and financial accounting matters to understand information contained in financial statements.

Relevance and faithful representation are the two primary qualities that make accounting information useful for decision making. The idea of consistency does not mean that companies cannot switch from one accounting method to another. Timeliness and neutrality are two ingredients of relevance.

Verifiability and predictive value are two ingredients of faithful representation. Revenues, gains, and distributions to owners all increase equity. Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. The historical cost principle would be of limited usefulness if not for the going concern assumption.

The economic entity assumption means that economic activity can be identified with a particular legal entity. The expense recognition principle states that debits must equal credits in each transaction.

Revenues are realizable when assets received or held are readily convertible into cash or claims to cash. Supplementary information may include details or amounts that present a different perspective from that adopted in the financial statements.

In order to justify reguiring a particular measurement or disclosure, the benefits to be derived from it must equal the costs associated with it. Prudence or conservatism means when in doubt, choose the solution that will be least likely to overstate liabilities or expenses. A soundly developed conceptual framework of concepts and objectives should a. Which of the following are not true concerning a conceptual framework in account-ing?

It should be a basis for standard-setting. It should allow practical problems to be solved more quickly by reference to it. It should be based on fundamental truths that are derived from the laws of nature.

All of the above a-c are true. What is a purpose of having a conceptual framework? To enable the profession to more quickly solve emerging practical problems. To provide a foundation from which to build more useful standards. Neither a nor b.

Practical problems should be more quickly solvable by reference to an existing conceptual framework. A coherent set of accounting standards and rules should result.

Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply. Recognition,measurement, and disclosure concepts such as assumptions, principles, and constraints b. Qualitative characteristics of accounting information c. Elements of financial statements d. Objective of financial reporting The underlying theme of the conceptual framework is a. Which of the following is not an objective of financial reporting?

To provide information about economic resources, the claims to those resources, and the changes in them. To provide information that is helpful to investors and creditors and other users in assessing the amounts, timing, and uncertainty of future cash flows.

To provide information that is useful to those making investment and credit decisions. All of these are objectives of financial reporting. The objectives of financial reporting include all of the following except to provide information that a. What is a primary objective of financial reporting as indicated in the conceptual framework? Provide information that is helpful to present and potential investors, creditors, and other users in assessing the amounts, timing, and uncertainty of future cash flows.

Technical Bulletins The purpose of the Emerging Issues Task Force is to a. Which of the following pronouncements were issued by the Accounting Principles Board? Accounting Research Bulletins b. Opinions c. Statements of Position d. Statements of Financial Accounting Concepts Which of the following organizations has not been instrumental in the development of financial accounting standards in the United States?

AICPA b. FASB c. IASB d. An organization that has not published accounting standards is the a. Securities and Exchange Commission. All of these have published accounting standards. The purpose of Statements of Financial Accounting Concepts is to a. Members of the Financial Accounting Standards Board are a. Exposure Draft 2. Statement of Financial Accounting Standards 3. Preliminary Views The chronological order in which these items are released is as follows: a.

Generally accepted accounting principles a. The most significant current source of generally accepted accounting principles is the a. Which of the following is not a part of generally accepted accounting principles? FASB Interpretations b. APB Opinions d. All of these are part of generally accepted accounting principles. Which of the following publications does not qualify as a statement of generally accepted accounting principles? Statements of financial standards issued by the FASB b. Accounting interpretations issued by the FASB c.

Rule of the Code of Professional Conduct addresses: a. Which of the following is not considered a component of generally accepted accounting principles? Widely recognized industry practices. Articles published in CPA journals. Financial accounting standard-setting in the United States a. The purpose of the International Accounting Standards Board is to a. What is not a source of pressure that may influence the accounting standard setting process?

CPA firms. What is a possible danger if politics plays too big a role in accounting standard setting? Accounting standards that are not truly generally accepted. Individuals may influence the standards. User groups become active. The FASB delegates its authority to elected officials. The difference between what the public thinks the accountant is doing and what Congress says the accountant is doing.

The difference between what the public thinks the accountant is doing and what the accountant thinks they can do. The difference between what the accountant is doing and what the Courts say the accountant should be doing.

What is not a reason that accounting standards may differ across countries? Past Practice. What would be an advantage of having all countries adopt and follow the same accounting standards?

Lower preparation costs. Which of the following is an ethical concern of accountants? Earnings manipulation. Conservative accounting. Industry practices. The standard-setting structure used by the International Accounting Standards Board is very similar to that used by the Financial Accounting Standards Board. The rules-based standards of IFRS are more detailed than the simpler, principles-based standards of U. Authoritative standards for IFRS include: a. International Financial Reporting Standards only.

GAAP only. GAAP is correct? GAAP d. Both U. GAAP tends to be more complex. Standing Interpretations Committee b. Standards Advisory Council c. Standards Comparison Committee d. Why would it be advantageous for U. What is the difference between principles-based and rules-based accounting rules?

A soundly developed conceptual framework enables the FASB to issue more useful and consistent pronouncements over time. A conceptual framework is a coherent system of concepts that flow from an objective.

The first level of the conceptual framework identifies the recognition, measurement, and disclosure concepts used in establishing accounting standards. The objective of financial reporting is the foundation of the conceptual framework. Users of financial statements are assumed to need no knowledge of business and financial accounting matters to understand information contained in financial statements. Relevance and faithful representation are the two primary qualities that make accounting information useful for decision making.

The idea of consistency does not mean that companies cannot switch from one accounting method to another. Timeliness and neutrality are two ingredients of relevance. Verifiability and predictive value are two ingredients of faithful representation. Revenues, gains, and distributions to owners all increase equity. Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

The historical cost principle would be of limited usefulness if not for the going concern assumption. The economic entity assumption means that economic activity can be identified with a particular legal entity. The expense recognition principle states that debits must equal credits in each transaction. Revenues are realizable when assets received or held are readily convertible into cash or claims to cash. Supplementary information may include details or amounts that present a different perspective from that adopted in the financial statements.

In order to justify reguiring a particular measurement or disclosure, the benefits to be derived from it must equal the costs associated with it. Prudence or conservatism means when in doubt, choose the solution that will be least likely to overstate liabilities or expenses.

A soundly developed conceptual framework of concepts and objectives should a. Which of the following are not true concerning a conceptual framework in account-ing?

It should be a basis for standard-setting. It should allow practical problems to be solved more quickly by reference to it. It should be based on fundamental truths that are derived from the laws of nature.

All of the above a-c are true. What is a purpose of having a conceptual framework? To enable the profession to more quickly solve emerging practical problems.

To provide a foundation from which to build more useful standards. Neither a nor b. Practical problems should be more quickly solvable by reference to an existing conceptual framework. A coherent set of accounting standards and rules should result. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply.

Recognition,measurement, and disclosure concepts such as assumptions, principles, and constraints b. Qualitative characteristics of accounting information c. Elements of financial statements d.

Objective of financial reporting The underlying theme of the conceptual framework is a.