Question : 81.Which of the following not an objective of generally accepted : 1237409

 

 

81.Which of the following is not an objective of generally accepted accounting principles?   

A.To minimize the amount of income taxes owed.

 

B.To ensure that both preparers and users of financial statements understand the concepts and assumptions used in presenting information within these statements.

 

C.To enhance the relevance and verifiability of information contained in financial statements.

 

D.To increase the comparability of financial statements prepared by different companies.

 

 

 

 

82.In the phrase “generally accepted accounting principles,” the words accounting principles refers to:   

A.The standards, assumptions, and concepts that serve as “ground rules” for financial reporting.

 

B.Ethical standards that prohibit fraudulent or misleading financial reporting.

 

C.The steps in the accounting cycle.

 

D.The accounting practices authorized by the Financial Accounting Standards Board (FASB).

 

 

 

 

83.The accounting standards and concepts used in the preparation of financial statements are called:   

A.Certified principles of accounting (CPA).

 

B.Generally accepted accounting principles (GAAP).

 

C.Federal accounting standards and bylaws (FASB).

 

D.Standards enforcing consistency (SEC).

 

 

 

 

84.Generally accepted accounting principles are the “ground rules” used in the preparation of:   

A.Income tax returns.

 

B.All accounting reports.

 

C.Reports to federal and state regulatory agencies.

 

D.Financial statements.

 

 

 

 

85.The Financial Accounting Standards Board is:   

A.Responsible for the review and audit of federal income tax returns.

 

B.Primarily concerned with the preparation of the annual federal budget.

 

C.A private group that conducts research and determines generally accepted accounting principles.

 

D.A government agency with legal authority to approve or disapprove the financial statements of corporations that sell their securities to the public.

 

 

 

 

86.The Accounting Standards Codification was developed by:   

A.The Financial Accounting Standards Board.

 

B.Certified public accountants.

 

C.The Securities and Exchange Commission.

 

D.The Internal Revenue Service.

 

 

 

 

87.The body created by the Sarbanes Oxley Act and charged with oversight of the accounting profession is the:   

A.Public Company Accounting Oversight Board.

 

B.Auditing Standards Board.

 

C.International Accounting Standards Board.

 

D.Securities and Exchange Commission.

 

 

 

 

88.The measures used by an organization to provide reasonable assurance that the organization produces reliable financial reports, complies with applicable laws and regulations, and conducts its operations in an efficient and effective manner are collectively referred to as:   

A.Generally accepted accounting principles.

 

B.Financial accounting standards.

 

C.Securities and exchange regulations.

 

D.The internal control structure.

 

 

 

 

89.In 2012 the SEC issued an extensive report regarding the use of IFRS by U.S. public companies and listed which of the following as a major obstacle to adopting IASB standards?   

A.IASB standards are generally viewed as low quality.

 

B.IASB’s dependence on funding from the major accounting firms.

 

C.Cross-border financing is decreasing in popularity.

 

D.The IASB is not a governmental agency and therefore is not positioned to develop accounting standards.

 

 

 

 

90.The basic purpose of audited financial statements is to:   

A.Provide the reporting company with assurance that all assets are protected from theft or embezzlement.

 

B.Prepare financial statements for companies that do not have their own accounting departments.

 

C.Provide users of the financial statements with assurance that the statements are verifiable and are presented in conformity with generally accepted accounting principles.

 

D.Provide both the reporting company and the users of the statements with a written guarantee that the statements are error-free.