Intermediate Accounting Test Bank
CHAPTER 1
FINANCIAL ACCOUNTING AND
ACCOUNTING STANDARDS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer
F
T
T
T
F
T
T
F
F
T
T
F
T
F
T
T
F
F
F
F
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Description
Definition of financial accounting.
Purpose of financial statements.
Definition of financial accounting.
Capital allocation process.
Objective of financial reporting.
Decision-Usefulness approach.
Users of financial statements.
Committee on Accounting Procedure.
Passage of FASB standards.
Financial Accounting Concepts.
Creation of Accounting Principles Board.
FASB Codification.
Code of Professional Conduct.
GAAP and political action.
Public Company Accounting Oversight Board.
Expectations gap.
Financial reports.
Fair value information.
International Financial Reporting Standards.
Ethical issues.
MULTIPLE CHOICE—Conceptual
Answer
a d d a d b b a d d c c c d c
No.
Description
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
Financial accounting.
Users of financial reports.
Identify the major financial statements.
Financial reporting entity.
Differences between financial and managerial accounting.
Financial reporting communication.
Managerial accounting.
Capital allocation process.
Efficient use of resources.
Capital allocation process.
Financial statement information.
Accounting profession challenge.
Financial reporting objective.
Financial statements primary users.
Investor’s decision making.
Test Bank for Intermediate Accounting, Fourteenth Edition
1-2
MULTIPLE CHOICE—Conceptual
Answer
b c c b a c d d b b a c d c b a c c d d d a b b b c d b b c d c d d d d d d b c c a c
(cont.)
No.
Description
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
FINANCIAL ACCOUNTING AND
ACCOUNTING STANDARDS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer
F
T
T
T
F
T
T
F
F
T
T
F
T
F
T
T
F
F
F
F
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Description
Definition of financial accounting.
Purpose of financial statements.
Definition of financial accounting.
Capital allocation process.
Objective of financial reporting.
Decision-Usefulness approach.
Users of financial statements.
Committee on Accounting Procedure.
Passage of FASB standards.
Financial Accounting Concepts.
Creation of Accounting Principles Board.
FASB Codification.
Code of Professional Conduct.
GAAP and political action.
Public Company Accounting Oversight Board.
Expectations gap.
Financial reports.
Fair value information.
International Financial Reporting Standards.
Ethical issues.
MULTIPLE CHOICE—Conceptual
Answer
a d d a d b b a d d c c c d c
No.
Description
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
Financial accounting.
Users of financial reports.
Identify the major financial statements.
Financial reporting entity.
Differences between financial and managerial accounting.
Financial reporting communication.
Managerial accounting.
Capital allocation process.
Efficient use of resources.
Capital allocation process.
Financial statement information.
Accounting profession challenge.
Financial reporting objective.
Financial statements primary users.
Investor’s decision making.
Test Bank for Intermediate Accounting, Fourteenth Edition
1-2
MULTIPLE CHOICE—Conceptual
Answer
b c c b a c d d b b a c d c b a c c d d d a b b b c d b b c d c d d d d d d b c c a c
(cont.)
No.
Description
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.