Financial Accounting Quiz
The Financial Accounting Standards Board employs a "due process" system which
(Points: 5) has all CPAs in the United States vote on a new Statement. enables interested parties to express their views on issues under consideration. identifies the accounting issues that are the most important. requires that all accountants receive a copy of financial standards.
2. (TCO A) The IASB: (Points: 5) governs accounting standards in the U.S. is working on a convergence project with the FASB. sets the accounting standards for only European countries. plays only a minor part in accounting rule making throughout the world.
3. (TCO A) International GAAP, or i-GAAP: (Points: 5) has different standards than under U.S. GAAP. has some commonality with …show more content…
(TCO A) Information is neutral if it: (Points: 5) provides benefits which are at least equal to the costs of its preparation. can be compared with similar information about an enterprise at other points in time. would have no impact on a decision maker. is free from bias toward a predetermined result.
5. (TCO A) Which of the following elements of financial statements is not a component of comprehensive income? (Points: 5) Revenues Distributions to owners Losses Expenses
6. (TCO A) Issuance of common stock for cash affects which basic element of financial statements? (Points: 5) Revenues Losses Liabilities Equity
7. (TCO A) Which basic element of financial statements arise from peripheral or incidental transactions? (Points: 5) Assets Liabilities Gains Expenses
8. (TCO A) Which basic assumption may not be followed when a firm in bankruptcy reports financial results? (Points: 5) Economic entity assumption Going concern assumption Periodicity assumption Monetary unit assumption
9. (TCO A) What is the quality of information that enables users to better forecast future operations? (Points: 5) Reliability. Materiality. Comparability. …show more content…
(TCO D) Houghton Company has the following items: common stock, $720,000; treasury stock, $85,000; deferred taxes, $100,000 and retained earnings, $313,000. What total amount should Houghton Company report as stockholders' equity? (Points: 5) $848,000 $948,000 $1,048,000 $1,118,000
17. (TCO D) The current assets section of the balance sheet should include (Points: 5) machinery patents goodwill inventory
18. (TCO D) An example of an item which is not an element of working capital is: (Points: 5) accrued interest on notes receivable. goodwill. goods in process. temporary investments.
19. (TCO D) Which of the following is not an acceptable major asset classification? (Points: 5) Current assets Long-term assets Property, plant, and equipment Deferred charges
20. (TCO D) The presentation of long-term liabilities in the balance sheet should disclose: (Points: 5) maturity dates interest rates conversion rights all of the above
21. (TCO D) Equity or debt securities held to finance future construction of additional manufacturing plants should be classified on the balance sheet as: (Points: 5) current assets. property, plant and equipment. intangible assets. long-term
(Points: 5) has all CPAs in the United States vote on a new Statement. enables interested parties to express their views on issues under consideration. identifies the accounting issues that are the most important. requires that all accountants receive a copy of financial standards.
2. (TCO A) The IASB: (Points: 5) governs accounting standards in the U.S. is working on a convergence project with the FASB. sets the accounting standards for only European countries. plays only a minor part in accounting rule making throughout the world.
3. (TCO A) International GAAP, or i-GAAP: (Points: 5) has different standards than under U.S. GAAP. has some commonality with …show more content…
(TCO A) Information is neutral if it: (Points: 5) provides benefits which are at least equal to the costs of its preparation. can be compared with similar information about an enterprise at other points in time. would have no impact on a decision maker. is free from bias toward a predetermined result.
5. (TCO A) Which of the following elements of financial statements is not a component of comprehensive income? (Points: 5) Revenues Distributions to owners Losses Expenses
6. (TCO A) Issuance of common stock for cash affects which basic element of financial statements? (Points: 5) Revenues Losses Liabilities Equity
7. (TCO A) Which basic element of financial statements arise from peripheral or incidental transactions? (Points: 5) Assets Liabilities Gains Expenses
8. (TCO A) Which basic assumption may not be followed when a firm in bankruptcy reports financial results? (Points: 5) Economic entity assumption Going concern assumption Periodicity assumption Monetary unit assumption
9. (TCO A) What is the quality of information that enables users to better forecast future operations? (Points: 5) Reliability. Materiality. Comparability. …show more content…
(TCO D) Houghton Company has the following items: common stock, $720,000; treasury stock, $85,000; deferred taxes, $100,000 and retained earnings, $313,000. What total amount should Houghton Company report as stockholders' equity? (Points: 5) $848,000 $948,000 $1,048,000 $1,118,000
17. (TCO D) The current assets section of the balance sheet should include (Points: 5) machinery patents goodwill inventory
18. (TCO D) An example of an item which is not an element of working capital is: (Points: 5) accrued interest on notes receivable. goodwill. goods in process. temporary investments.
19. (TCO D) Which of the following is not an acceptable major asset classification? (Points: 5) Current assets Long-term assets Property, plant, and equipment Deferred charges
20. (TCO D) The presentation of long-term liabilities in the balance sheet should disclose: (Points: 5) maturity dates interest rates conversion rights all of the above
21. (TCO D) Equity or debt securities held to finance future construction of additional manufacturing plants should be classified on the balance sheet as: (Points: 5) current assets. property, plant and equipment. intangible assets. long-term