Question :
11) The Financial Accounting Standards Board responsible for establishing:
A) the : 1230029
11) The Financial Accounting Standards Board is responsible for establishing:
A) the code of professional conduct for accountants.
B) the Securities and Exchange Commission.
C) generally accepted accounting principles.
D) international accounting financial standards.
12) The acronym GAAP stands for:
A) generally acceptable authorized pronouncements.
B) government authorized accountant principles.
C) generally accepted accounting principles.
D) government audited accounting pronouncements.
13) ________ means that the accounting information for a company must be prepared in such a way as to be capable of being compared with information from other companies in the same period and consistent with similar information for that company in previous periods.
A) Verifiability
B) Timeliness
C) Understandability
D) Comparability
14) Which of the following is a correct statement about GAAP and IFRS?
A) IFRS prefers valuing assets at historical cost while GAAP prefers using fair value.
B) IFRS is more “rules-based” than GAAP.
C) The FASB and the IASB are working towards convergence of standards.
D) The SEC will require all companies to use IFRS beginning in 2013.
15) To be useful, accounting information must have the fundamental qualitative characteristics of:
A) comparability and relevance.
B) relevance and faithful representation.
C) materiality and understandability.
D) faithful representation and timeliness.
16) All of the following are true statements about the entity assumption EXCEPT for:
A) the entity assumption draws a sharp boundary around each entity.
B) the transactions of the business cannot be mingled with the transactions of the owner.
C) the entity assumption ensures that the business will continue indefinitely.
D) under the entity assumption, the entity is any organization that stands apart as a separate economic unit
17) Verifiability means that the information:
A) is timely.
B) is understandable.
C) must be capable of being checked for accuracy.
D) is material and relevant.
18) When preparing accounting information, understand that:
A) the auditors are primarily responsible for preparing the information.
B) the cost of disclosure should not exceed the expected benefits to the users.
C) accounting information can be produced quickly and inexpensively.
D) all information must be disclosed for a complete understanding of the underlying economic facts.
19) The accounting assumption that states that the business, rather than its owners, is the reporting unit is the:
A) entity assumption.
B) going concern assumption.
C) stable-monetary-unit assumption.
D) historical cost assumption.
20) The stable-monetary-unit assumption:
A) ensures that accounting records and statements are based on the most reliable data available.
B) holds that the entity will remain in operation for the foreseeable future.
C) maintains that each organization or section of an organization stands apart from other organizations and individuals.
D) enables accountants to ignore the effect of inflation in the accounting records.
