CPA question

1. 1What two primary qualitative characteristics make accounting information useful?

   1. ARelevance and neutrality.
   2. BPredictive value and relevance.
   3. CFaithful representation and relevance.
   4. DFaithful representation and predictive value.
2. 2Which of the following is an advantage of cash basis accounting vs. accrual basis accounting?

   1. AIt provides a better indication of the entity’s long-run cash-generating ability.
   2. BIt usually provides less volatile year-to-year operating results.
   3. CIt usually leads to better adherence to the matching principle.
   4. DIt provides a more accurate representation of cash generated in a specific period.
3. 3Comparability, understandability, timeliness, and verifiability are enhancing qualitative characteristics that contribute to:

   

   1. AA
   2. BB
   3. CC
   4. DD
4. 4Under accounting principles generally accepted in the United States, in order for an item to qualify for recognition in the financial statements of a company, the item must
   I. Be measurable in monetary terms
   II. Reflect the consensus expectations of investors
   III. Meet the definition of an element of the financial statements

   1. AI only.
   2. BI and III only.
   3. CI, II, and III.
   4. DII and III only.
5. 5Consistency and feedback relate most closely to which two of the following accounting concepts, respectively?

   1. APredictive value and confirmatory value
   2. BRecognition and full disclosure
   3. CConservatism and cost/benefit
   4. DRecognition and matching
6. 6Information is considered material to the financial statements if
   I. It falls within industry-specific quantitative guidelines published by the Financial Accounting Standards Board.
   II. Its omission could make a difference in the decisions made by a user relying on the financial statements.
   III. Its misstatement could make a difference in the decisions made by a user relying on the financial statement.

   1. AII and III only.
   2. BI only.
   3. CI and III only.
   4. DI, II and III.

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CPA CPA Quiz on CPA question, created by Sonja NichtSagen on 13/04/2018.

Author

Sonja NichtSagen

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English

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Created on 13 Apr 2018 · updated on 13 Apr 2018

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