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Quiz on Untitled, created by dana on 18/01/2014.

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Question 1 of 20

1

Generally accepted accounting principles

Select one of the following:

  • have been specified in detail in the FASB conceptual framework

  • Derive their credibility and authority from general recognition and acceptance by the accounting profession.

Explanation

Question 2 of 20

1

The conceptual framework for financial reporting consists of how many levels

Select one of the following:

  • 3

  • 4

Explanation

Question 3 of 20

1

The conceptual framework for financial reporting consists of how many levels

Select one of the following:

  • 3

  • 4

Explanation

Question 4 of 20

1

Which of the following statements is true regarding the convergence project by the FASB and IASB?

Select one of the following:

  • The converged framework will be a series of documents, similar to the two conceptual frameworks that presently exist.

  • The IASB framework makes two assumptions

Explanation

Question 5 of 20

1

In the conceptual framework for financial reporting, what provides "the how" - the implementation of accounting?

Select one of the following:

  • A measurement and cognition concepts such as assumptions, principles, and constraints

  • qualitative characteristics of accounting information.

Explanation

Question 6 of 20

1

The underlying theme of the conceptual framework is decision usefulness

Select one of the following:

  • True
  • False

Explanation

Question 7 of 20

1

For information to be relevant, it must have both predictive value and confirmatory value?

Select one of the following:

  • True
  • False

Explanation

Question 8 of 20

1

Enhancing qualities of accounting information include

Select one of the following:

  • Comparability and verifiability

  • Relevance and faithful representation.

Explanation

Question 9 of 20

1

Enhancing quailities of accounting information include all of the following except

Select one of the following:

  • comparability

  • understandability

  • neutrality

  • timeliness

Explanation

Question 10 of 20

1

In order to be relevant, financial information must have

Select one of the following:

  • confirmatory or predictive value

  • comparability

Explanation

Question 11 of 20

1

The change in net assets during a period from transactions and other events and circumstances from non-owner sources is called

Select one of the following:

  • revenues

  • comprehensive income

Explanation

Question 12 of 20

1

an increase in net assets arising from peripheral or incidental transactions is called a(n)

Select one of the following:

  • gain

  • investment by owner

Explanation

Question 13 of 20

1

Under current GAAP, inflation is ignored in accounting due to

Select one of the following:

  • consistency

  • the monetary unit assumption

Explanation

Question 14 of 20

1

The periodicity assumption specifies that the most appropriate time periods for financial reporting are weekly, bi-monthly, and yearly

Select one of the following:

  • True
  • False

Explanation

Question 15 of 20

1

Depreciation and amortization policies are justifiable and appropriate because of the

Select one of the following:

  • economic entity assumption

  • going concern assumption

Explanation

Question 16 of 20

1

A contract is an agreement between two parties that creates enforceable rights or obligations

Select one of the following:

  • True
  • False

Explanation

Question 17 of 20

1

Generally, revenues are recognized when the

Select one of the following:

  • product is produced

  • performance obligation has been satisfited

Explanation

Question 18 of 20

1

Which of the following statements about the fair value principle is true.

Select one of the following:

  • Fair value is generally less relevant than historical cost

  • Fair value is a market-based measure

Explanation

Question 19 of 20

1

The difficulty in cost benefit analysis is that the benefits are usually evident and measurable, while the costs are not always evident or measurable.

Select one of the following:

  • True
  • False

Explanation

Question 20 of 20

1

The existing conceptual frameworks underlying IFRS and GAAP are strikingly different and the FASB and ISAB will likely change many aspects of each of the frameworks in order to create a common conceptual framework.

Select one of the following:

  • True
  • False

Explanation