Question 1
Question
Generally accepted accounting principles
Question 2
Question
The conceptual framework for financial reporting consists of how many levels
Question 3
Question
The conceptual framework for financial reporting consists of how many levels
Question 4
Question
Which of the following statements is true regarding the convergence project by the FASB and IASB?
Answer
-
The converged framework will be a series of documents, similar to the two conceptual frameworks that presently exist.
-
The IASB framework makes two assumptions
Question 5
Question
In the conceptual framework for financial reporting, what provides "the how" - the implementation of accounting?
Answer
-
A measurement and cognition concepts such as assumptions, principles, and constraints
-
qualitative characteristics of accounting information.
Question 6
Question
The underlying theme of the conceptual framework is decision usefulness
Question 7
Question
For information to be relevant, it must have both predictive value and confirmatory value?
Question 8
Question
Enhancing qualities of accounting information include
Question 9
Question
Enhancing quailities of accounting information include all of the following except
Answer
-
comparability
-
understandability
-
neutrality
-
timeliness
Question 10
Question
In order to be relevant, financial information must have
Question 11
Question
The change in net assets during a period from transactions and other events and circumstances from non-owner sources is called
Answer
-
revenues
-
comprehensive income
Question 12
Question
an increase in net assets arising from peripheral or incidental transactions is called a(n)
Question 13
Question
Under current GAAP, inflation is ignored in accounting due to
Question 14
Question
The periodicity assumption specifies that the most appropriate time periods for financial reporting are weekly, bi-monthly, and yearly
Question 15
Question
Depreciation and amortization policies are justifiable and appropriate because of the
Question 16
Question
A contract is an agreement between two parties that creates enforceable rights or obligations
Question 17
Question
Generally, revenues are recognized when the
Question 18
Question
Which of the following statements about the fair value principle is true.
Question 19
Question
The difficulty in cost benefit analysis is that the benefits are usually evident and measurable, while the costs are not always evident or measurable.
Question 20
Question
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.