Details of this Paper

true fals2 and matching ques-Environment and Theoretical Structure of Financial Accounting

Description

solution


Question

Question;1. The primary function of financial accounting is to;provide relevant financial information to parties external to business;enterprises.;True False 2. Accrual accounting attempts to measure revenues and;expenses that occurred during accounting periods so they equal net operating;cash flow.;True False 3. The FASB is currently the public sector;organization responsible for setting accounting standards in the U.S.;True False 4. The Public Reform and Investor Protection Act of;2002 (Sarbanes-Oxley) changed the entity responsible for setting auditing;standards in the United States.;True False 5. A rules-based approach to standard setting stresses;professional judgment as opposed to following a list of rules.;True False 6. Under federal securities laws, the SEC has the;authority to set accounting standards in the U.S.;True False;7. The primary responsibility for properly applying;GAAP when communicating with investors and creditors through financial;statements lies with a firm's auditors.;True False 8. Auditors play an important role in the resource;allocation process by adding credibility to financial statements.;True False 9. Materiality can be affected by the dollar amount of;an item, the nature of the item, or both.;True False 10. Conservatism is a desired qualitative;characteristic of accounting information.;True False 11. Equity is a residual amount representing the;owner's interest in the assets of the business.;True False 12. Revenues are inflows or other enhancements of;assets or settlements of liabilities from activities that constitute the;entity's ongoing operations.;True False 13. Gains or losses result, respectively, from the;disposition of business assets for greater than, or less than, their book;values.;True False 14. Comprehensive income is another term for net;income.;True False;15. Determining fair value by calculating the present;value of future cash flows is a level 1 type of input.;True False 16. The FASB's framework for measuring fair value;doesn't change the situations in which fair value is used under current;GAAP.;True False Matching Questions17. Listed below are ten terms followed by a list of;phrases that describe or characterize five of the terms. Match each phrase with;the correct term by placing the letter designating the best term in the space;provided by the phrase.;1. Predictive value;Information is;useful in projecting cash flows.;2. Relevance;Pertinent to the;decision at hand.;3. Distribution to owners;Information is;available prior to the decision.;4. Confirmatory value;Decrease in;equity due to transfers to owners.;5. Timeliness;Information;confirms expectations.;18. Listed below are ten terms followed by a list of;phrases that describe or characterize five of the terms. Match each phrase with;the correct term by placing the letter designating the best term in the space;provided by the phrase.;1. Gain;Along with;relevance, a fundamental decision-specific quality.;2. Materiality;Results if an;asset is sold for more than book value.;3. Completeness;Information;contains all information necessary for faithful representation.;4. Comprehensive income;The change in;equity from nonowner transactions.;5. Faithful representation;Concerns the decision-making;impact of both the amount and nature of an item.;19. Listed below are ten terms followed by a list of;phrases that describe or characterize five of the terms. Match each phrase with;the correct term with their phrases by placing the letter designating the best;term in the space provided by the phrase.;1. Neutrality;Important in;analysis between firms.;2. Comparability;Accounting;information should be unbiased.;3. Consistency;The process of including;data in financial statements.;4. Cost effectiveness;Applying the;same accounting practices over time.;5. Recognition;Considers the;value of using information relative to cost of providing it.;20. Listed below are ten terms are followed by a list;of phrases that describe or characterize five of the terms. Match each phrase;with the correct term by placing the letter designating the best term in the;space provided by the phrase.;1. Monetary unit assumption;Implies;consensus among different observers.;2. Verifiability;Assumes all;transactions can be identified with a particular entity.;3. Economic entity assumption;Assumes an;entity will continue to operate indefinitely.;4. Going concern assumption;Requires;reporting the financial life of an entity in discrete time frames.;5. Periodicity assumption;Ignores the;possibility of inflation.;21. Listed below are ten terms followed by a list of;phrases that describe or characterize five of the terms. Match each phrase with;the correct term by placing the letter designating the best term in the space;provided by the phrase.;1. Historical cost principle;Basis of;measurement for fixed assets.;2. Materiality;Recognition of;revenue only after certain criteria are satisfied.;3. Matching principle;Guide to expense;recognition.;4. Full-disclosure principle;Reporting of all;information that could affect decisions.;5. Realization principle;Application of;GAAP sometimes avoided under this constraint.;22. Listed below are ten terms followed by a list of;phrases that describe or characterize five of the terms. Match each phrase with;the correct term by placing the letter designating the best term in the space;provided by the phrase.;1. Financial Accounting Standards Board;It is a;practical justification for choosing among alternative accounting;methods.;2. Accounting Principles Board;It established;GAAP before the FASB.;3. Conservatism;Its EITF;Issues are GAAP when entered in the Accounting Standards;Codification.;4. AICPA;It has the;authority to set U.S. accounting standards.;5. Securities and Exchange Commission;It is the;national organization for CPAs in the U.S.;23. Listed below are ten terms followed by a list of;phrases that describe or characterize five of the terms. Match each phrase with;the correct term by placing the letter designating the best term in the space;provided by the phrase.;1. Expenses;Net;assets.;2. Equity;Outflows of;resources to generate revenues.;3. Distributions to owners;Cash;dividends.;4. Investments by owners;Claims of;creditors against the assets of a business.;5. Liabilities;Transfers of;resources in exchange for common and preferred stock.;24. Listed below are ten terms followed by a list of;phrases that describe or characterize five of the terms. Match each phrase with;the correct term by placing the letter designating the best term in the space;provided by the phrase.;1. Losses;Net outflows;from peripheral transactions.;2. Assets;Increases in;equity from the sale of goods and/or services.;3. Revenues;Results if an;asset is sold for more than book value.;4. Comprehensive income;All changes in;equity except owner transactions.;5. Gains;Probable future;economic benefits controlled by an entity.;25. Listed below are ten organizations followed by a;list of phrases that describe or characterize the organizations. Match each;phrase with the correct organization by placing the letter designating the best;term in the space provided by the phrase.;1. SEC;Establishes;auditing standards in the U.S for public companies.;2. FASB;Primary national;organization of accountants working in industry.;3. IASB;Sets accounting;standards in the U.S.;4. AICPA;Provides timely;responses to financial reporting issues.;5. EITF;The FASB's;parent organization.;6. PCAOB;Parent;organization of the IASB.;7. IMA;FASB's;predecessor.;8. IASC;Regulates the;financial reporting for public companies.;9. APB;National;organization of certified public accountants.;10. FAF;Sets global;accounting standards.

 

Paper#41255 | Written in 18-Jul-2015

Price : $19
SiteLock