Chapter 2 Quiz 2

1. 1The quality of information that means the numbers and descriptions match what really existed or happened is

   1. Aa. relevance.
   2. Bb. faithful representation.
2. 2 47. Which of the following does not relate to relevance?

   1. Aa. Materiality
   2. Bb. Predictive value
   3. Cc. Confirmatory value
   4. Dd. All of these answer choices relate to relevance.
3. 3
   48. According to Statement of Financial Accounting Concepts No. 8, materiality is an ingredient of the fundamental quality(ies) of:
   Relevance Faithful Representation
   

   1. Ac. Yes No
   2. Bd. No No
4. 4According to Statement of Financial Accounting Concepts No. 8, completeness is an ingredient of the fundamental quality(ies) of:
   Relevance Faithful Representation
   

   1. Ac. No No
   2. Bd. No Yes
5. 5According to Statement of Financial Accounting Concepts No. 8, neutrality is an ingredient of the fundamental quality(ies) of:
   Relevance Faithful Representation
   

   1. Ab. No Yes
   2. Bd. No No
6. 6Neutrality means that information
   

   1. Ac. would have no impact on a decision maker.
   2. Bd. cannot favor one set of interested parties over another.
7. 7The characteristic that is demonstrated when a high degree of consensus can be secured among independent measurers using the same measurement methods is
   

   1. Ab. faithful representation.
   2. Bc. verifiability.
8. 8According to Statement of Financial Accounting Concepts No. 8, predictive value is an ingredient of the fundamental quality(ies) of:
   Relevance Faithful Representation
   

   1. Aa. Yes No
   2. Bb. Yes Yes
9. 9Under Statement of Financial Accounting Concepts No. 2, free from error is an ingredient of the fundamental quality of
   Faithful Representation Relevance
   

   1. Ab. No Yes
   2. Bc. Yes No
10. 10Financial information demonstrates consistency when
    

    1. Aa. firms in the same industry use different accounting methods to account for the same type of transaction.
    2. Bb. a company changes its estimate of the salvage value of a fixed asset.
    3. Cc. a company fails to adjust its financial statements for changes in the value of the measuring unit.
    4. Dd. None of these answer choices are correct

11. 11Financial information exhibits the characteristic of consistency when
    

    1. Aa. expenses are reported as charges against revenue in the period in which they are paid.
    2. Bb. a company applies the same accounting treatment to similar events, from period to period.
12. 12Information about different companies and about different periods of the same company can be prepared and presented in a similar manner. Comparability and consistency are related to which of these objectives?
    Comparability Consistency
    

    1. Ab. Companies Periods
    2. Bd. Periods Periods
13. 13When information about two different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristic of
    

    1. Aa. relevance.
    2. Bb. faithful representation.
    3. Cc. consistency.
    4. Dd. None of these answer choices are correct.
14. 14In classifying the elements of financial statements, the primary distinction between revenues and gains is
    

    1. Ab. the likelihood that the transactions involved will recur in the future.
    2. Bc. the nature of the activities that gave rise to the transactions involved.
15. 15A decrease in net assets arising from peripheral or incidental transactions is called a(n)
    

    1. Aa. capital expenditure.
    2. Bc. loss.
16. 16One of the elements of financial statements is comprehensive income. As described in Statement of Financial Accounting Concepts No. 6, "Elements of Financial Statements," comprehensive income is equal to
    

    1. Aa. revenues minus expenses plus gains minus losses.
    2. Bb. revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners.
    3. Cc. revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners plus assets minus liabilities.
    4. Dd. None of these answer choices are correct.
17. 17Which of the following elements of financial statements is not a component of comprehensive income?
    

    1. Ab. Distributions to owners
    2. Ba. Revenues
18. 18The calculation of comprehensive income includes which of the following?
    Operating Income Distributions to Owners
    

    1. Ac. No Yes
    2. Bd. Yes No
19. 19According to the FASB conceptual framework, which of the following elements describes transactions or events that affect a company during a period of time?
    

    1. Aa. Assets.
    2. Bb. Expenses
20. 20According to the FASB Conceptual Framework, the elementsassets, liabilities, and equitydescribe amounts of resources and claims to resources at/during a
    Moment in Time Period of Time
    

    1. Ab. Yes Yes
    2. Ba. Yes No
21. 21Which of the following is not a basic element of financial statements?
    

    1. Ab. Balance sheet
    2. Ba. Assets
22. 22Which of the following basic elements of financial statements is more associated with the balance sheet than the income statement?
    

    1. Aa. Equity
    2. Bb. Revenue
23. 23Issuance of common stock for cash affects which basic element of financial statements?
    

    1. Ad. Equity
    2. Bc. Liabilities
24. 24Which of these basic elements of financial statements arises from peripheral or incidental transactions?
    

    1. Aa. Assets
    2. Bc. Gains
25. 25Which of the following is not a basic assumption underlying the financial accounting structure?
    

    1. Ad. Historical cost assumption
    2. Bc. Periodicity assumption

Description

Accounting Exam 2 Quiz on Chapter 2 Quiz 2, created by Mahmoud Hemood on 29/10/2019.

Author

Mahmoud Hemood

Language

English

Views

1

Tags

accounting exam 2

Rating

No ratings yet

Rate this quiz

Rate this quiz

More on Qualitative Characteristics of Financial Information