Question :
31. Firms account for material errors in previously issued financial statements : 1230485
31. Firms account for material errors in previously issued financial statements by retrospectively restating net income of prior periods and adjusting the beginning balance in Retained Earnings of the current period.
32. If practical, firms account for voluntary changes in accounting principles, such as from a LIFO to a FIFO cost-flow assumption for inventories, by retrospectively restating net income of prior periods and adjusting the beginning balance in Retained Earnings of the current period.
33. Firms account for changes in accounting principles required by a new reporting standard in accordance with the guidance specified in the standard.
34. Recent changes in the financial reporting environment include which of the following? A. The adoption or planned adoption of IFRS, or standards based on IFRS, for financial reporting in over 100 countriesB. The willingness of the Securities and Exchange Commission in the United States to permit non-U.S. firms that list and trade their securities in the United States to report using IFRS without a reconciliation to U.S. GAAP. C. The requirement to measure certain assets and liabilities at fair value instead of acquisition cost, and in some cases, to include the changes in fair value in net income instead of other comprehensive income. D. The codification of U.S. GAAP into a single body of literature. E. all of the above
35. Which of the following is not true concerning conceptual frameworks? A. The FASB, but not the IASB, relies on a conceptual framework to guide their standard-setting decisions.B. The conceptual framework is not a rigorous set of principles from which standard setters can logically deduce appropriate financial reporting standards. C. The purpose of a conceptual framework is to guide standard-setting decisions in order to enhance the quality and consistency of those decisions. D. The FASB and the IASB have separately developed their conceptual frameworks, and those frameworks are similar. E. The FASB and the IASB are currently working to develop a common conceptual framework for financial reporting.
36. Which of the following is not true concerning the FASB and the IASB conceptual frameworks? A. Both the FASB and the IASB rely on a conceptual framework to guide their standard-setting decisions.B. The conceptual framework is a rigorous set of principles from which standard setters can logically deduce appropriate financial reporting standards. C. The purpose of a conceptual framework is to guide standard-setting decisions in order to enhance the quality and consistency of those decisions. D. The FASB and the IASB have separately developed their conceptual frameworks, and those frameworks are similar. E. The two standard-setting bodies are currently working to develop a common conceptual framework for financial reporting.
37. Which of the following is not true concerning the FASB and the IASB conceptual frameworks? A. Both the FASB and the IASB rely on a conceptual framework to guide their standard-setting decisions.B. The conceptual framework is not a rigorous set of principles from which standard setters can logically deduce appropriate financial reporting standards. C. The purpose of a conceptual framework is to guide auditors’ decisions in order to enhance the quality and consistency of the audits. D. The FASB and the IASB have separately developed their conceptual frameworks, and those frameworks are similar. E. The two standard-setting bodies are currently working to develop a common conceptual framework for financial reporting.
38. Which of the following is not true concerning the FASB and the IASB conceptual frameworks? A. Both the FASB and the IASB rely on a conceptual framework to guide their standard-setting decisions.B. The conceptual framework is not a rigorous set of principles from which standard setters can logically deduce appropriate financial reporting standards. C. The purpose of a conceptual framework is to guide standard-setting decisions in order to enhance the quality and consistency of those decisions. D. The FASB and the IASB have separately developed their conceptual frameworks, and those frameworks are very different. E. The two standard-setting bodies are currently working to develop a common conceptual framework for financial reporting.
39. Which of the following is not true concerning the FASB and the IASB conceptual frameworks? A. Both the FASB and the IASB rely on a conceptual framework to guide their standard-setting decisions.B. The conceptual framework is not a rigorous set of principles from which standard setters can logically deduce appropriate financial reporting standards. C. The purpose of a conceptual framework is to guide standard-setting decisions in order to enhance the quality and consistency of those decisions. D. The FASB and the IASB have separately developed their conceptual frameworks, and those frameworks are similar. E. The two standard-setting bodies are refusing to develop a common conceptual framework for financial reporting.
40. Which of the following is not true concerning the FASB and the IASB conceptual frameworks? A. Both the FASB and the IASB rely on a conceptual framework to guide their standard-setting decisions.B. The conceptual framework is not a rigorous set of principles from which standard setters can logically deduce appropriate financial reporting standards. C. The purpose of a conceptual framework is to guide standard-setting decisions in order to enhance the quality and consistency of those decisions. D. The FASB and the IASB have separately developed their conceptual frameworks, and those frameworks are similar. E. The two standard-setting bodies are currently working to develop a common conceptual framework for financial reporting.
