Quiz
GAAP and the Conceptual Framework for Financial Reporting
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Questions in this quiz (20)
1Generally accepted accounting principles
- Ahave been specified in detail in the FASB conceptual framework
- BDerive their credibility and authority from general recognition and acceptance by the accounting profession.
2The conceptual framework for financial reporting consists of how many levels
- A3
- B4
3The conceptual framework for financial reporting consists of how many levels
- A3
- B4
4Which of the following statements is true regarding the convergence project by the FASB and IASB?
- AThe converged framework will be a series of documents, similar to the two conceptual frameworks that presently exist.
- BThe IASB framework makes two assumptions
5In the conceptual framework for financial reporting, what provides "the how" - the implementation of accounting?
- AA measurement and cognition concepts such as assumptions, principles, and constraints
- Bqualitative characteristics of accounting information.
6The underlying theme of the conceptual framework is decision usefulness
- ATrue
- BFalse
7For information to be relevant, it must have both predictive value and confirmatory value?
- ATrue
- BFalse
8Enhancing qualities of accounting information include
- AComparability and verifiability
- BRelevance and faithful representation.
9Enhancing quailities of accounting information include all of the following except
- Acomparability
- Bunderstandability
- Cneutrality
- Dtimeliness
10In order to be relevant, financial information must have
- Aconfirmatory or predictive value
- Bcomparability
11The change in net assets during a period from transactions and other events and circumstances from non-owner sources is called
- Arevenues
- Bcomprehensive income
12an increase in net assets arising from peripheral or incidental transactions is called a(n)
- Again
- Binvestment by owner
13Under current GAAP, inflation is ignored in accounting due to
- Aconsistency
- Bthe monetary unit assumption
14The periodicity assumption specifies that the most appropriate time periods for financial reporting are weekly, bi-monthly, and yearly
- ATrue
- BFalse
15Depreciation and amortization policies are justifiable and appropriate because of the
- Aeconomic entity assumption
- Bgoing concern assumption
16A contract is an agreement between two parties that creates enforceable rights or obligations
- ATrue
- BFalse
17Generally, revenues are recognized when the
- Aproduct is produced
- Bperformance obligation has been satisfited
18Which of the following statements about the fair value principle is true.
- AFair value is generally less relevant than historical cost
- BFair value is a market-based measure
19The difficulty in cost benefit analysis is that the benefits are usually evident and measurable, while the costs are not always evident or measurable.
- ATrue
- BFalse
20The 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.
- ATrue
- BFalse
Information
- Description
- Quiz on Untitled, created by dana on 18/01/2014.
- Author
- dana
- Language
- English
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- 160
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