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CH 1 - 301A
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Questions in this quiz (14)
1What is the objective of financial reporting?
- AProvide information that clearly portrays nonfinancial transactions.
- BProvide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors.
- CProvide information that excludes claims to the resources.
- DProvide information that is useful to management in making decisions.
2Primary users for general-purpose financial statements include each of the following except
- Acreditors.
- Bemployees.
- Csuppliers.
- Dinvestors.
3A common set of accounting standards and procedures is called
- Afinancial accounting standards.
- Bgenerally accepted accounting principles.
- Cobjectives of financial reporting.
- Dstatements of financial accounting concepts.
4Each of the following are true of the Securities and Exchange Commission except that
- Athe SEC’s involvement in the development of accounting standards varies.
- Bit is a federal agency.
- Cthe FASB relies on the SEC to develop accounting standards.
- Dthe SEC requires registrants to adhere to GAAP.
5.
- ANo ------- No
- BNo -------- Yes
- CYes ---------- Yes
- DYes ----------- No
6.
- ANo No
- BYes Yes
- CYes No
- DNo Yes
7The third level of the conceptual framework does not include
- Aelements.
- Bprinciples.
- Cconstraint.
- Dassumptions.
8The second level of the conceptual framework includes each of the following except
- Aprinciples.
- Belements.
- Cenhancing qualities.
- Dfundamental qualities.
9The cost constraint is also referred to as the
- Acost-benefit relationship.
- Bmateriality quality.
- Cmeasurement principle.
- Dmonetary unit assumption.
10Which of the following statements about materiality is correct?
- AAn item must make a difference or it need not be disclosed.
- BMateriality is a matter of relative size or importance.
- CAn item is material if its inclusion or omission would influence or change the judgment of a reasonable person.
- DAll of these answers are correct.
11Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy?
- AEconomic entity assumption
- BPeriodicity assumption
- CMonetary unit assumption
- DGoing-concern assumption.
12Which basic assumption may not be followed when a firm in bankruptcy reports financial results?
- APeriodicity assumption
- BMonetary unit assumption
- CEconomic entity assumption
- DGoing concern assumption
13Which basic assumption is illustrated when a firm reports financial results on an annual basis?
- AGoing concern assumption
- BEconomic entity assumption
- CMonetary unit assumption
- DPeriodicity assumption
14Which of the following is not a basic assumption underlying the financial accounting structure?
- AEconomic entity assumption
- BGoing concern assumption
- CHistorical cost assumption
- DPeriodicity assumption
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- Quiz on CH 1 - 301A, created by Orfa Cartagena on 05/10/2021.
- Author
- Orfa Cartagena
- Language
- English
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