Quiz
Chapter 2 Quiz 1
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Fragen in diesem Quiz (25)
1Generally accepted accounting principles
- Ac. derive their credibility and authority from general recognition and acceptance by the accounting profession.
- Bb. derive their authority from legal court proceedings.
2A soundly developed conceptual framework of concepts and objectives should
- Ad. All of these answer choices are correct
- Bc. allow new and emerging practical problems to be more quickly solved
- Cb. enhance comparability among companies' financial statements.
- Da. increase financial statement users' understanding of and confidence in financial reporting.
3Which of the following is not true concerning a conceptual framework in accounting?
- Ab. It should allow practical problems to be solved more quickly by reference to it.
- Bc. It should be based on fundamental truths that are derived from the laws of nature.
4 24. What is a purpose of having a conceptual framework?
- Ad. To enable the profession to more quickly solve emerging practical problems and to provide a foundation from which to build more useful standards.
- Bb. To segregate activities among different companies.
5S25. Which of the following is not a benefit associated with the FASB Conceptual Framework Project?
- Ad. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply
- Bb. Practical problems should be more quickly solvable by reference to an existing conceptual framework.
6In the conceptual framework for financial reporting, what provides "the why"--the purpose of accounting?
- Ab. Qualitative characteristics of accounting information
- Bd. Objective of financial reporting
7 27. The underlying theme of the conceptual framework is
- Aa. decision usefulness.
- Bc. faithful representation.
8The objective of general-purpose financial reporting is to provide financial information about a reporting entity to each of the following except
- Aa. potential equity investors.
- Bb. potential lenders.
- Cd. All of these answers are correct.
- Dc. present investors.
9The objective of general-purpose financial reporting is?
- Aa. to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers
- Bb. to provide companies with the option to select information that favors one set of interested parties over another
10 P30. If the LIFO inventory method was used last period, it should be used for the current and following periods because of
- Aa. consistency.
- Bb. materiality.
11 S31. Which of the following is a characteristic describing the fundamental quality of relevance?
- Aa. Predictive value.
- Bb. Neutrality.
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32. Which of the following is a fundamental quality of useful accounting information?- Ab. Relevance
- Bc. Neutrality
13 33. Which of the following is a fundamental quality of useful accounting information?
- Aa. Conservatism
- Bc. Faithful representation
14 34. What is meant by comparability when discussing financial accounting information?
- Ac. Information is measured and reported in a similar fashion across companies.
- Bb. Information is reasonably free from error.
15 35. What is meant by consistency when discussing financial accounting information?
- Aa. Information presented by a company applies the same accounting treatment to similar events, from period to period.
- Bb. Information is timely.
16 36. Which of the following is an ingredient of relevance?
- Ac. Timeliness
- Bd. Materiality
17 37. Which of the following is an ingredient of faithful representation?
- Ac. Neutrality
- Bd. Confirmatory value
18
38. Changing the method of inventory valuation should be reported in the financial statements because of which qualitative characteristic of accounting information?- Aa. Consistency
- Bc. Timeliness
19 39. A company issuing its annual financial reports within one month of the end of the year is an example of which enhancing quality of accounting information?
- Aa. Comparability
- Bb. Timeliness
20 40. What is the quality of information that is capable of making a difference in a decision?
- Ad. Relevance
- Bc. Timeliness
21 41. Neutrality is an ingredient of which fundamental quality of information?
- Aa. Faithful representation
- Bb. Comparability
22 42. If the FIFO inventory method was used last period, it should be used for the current and following periods because of
- Ac. understandability.
- Bd. consistency.
23 43. The pervasive criterion by which accounting information can be judged is that of
- Aa. decision usefulness.
- Bb. freedom from bias.
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44. The two fundamental qualities that make accounting information useful for decision making are- Aa. comparability and timeliness.
- Bc. relevance and faithful representation.
25 45. Accounting information is considered to be relevant when it
- Ab. is capable of making a difference in a decision.
- Ba. can be depended on to represent the economic conditions and events that it is intended to represent.
Informationen
- Beschreibung
- Accounting Exam 2 Quiz am Chapter 2 Quiz 1, erstellt von Mahmoud Hemood am 29/10/2019.
- Autor
- Mahmoud Hemood
- Sprache
- English
- Aufrufe
- 3
- Schlagwörter
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