Ac 550--Week 1 Assignment
ACC-550 / Week 1 Homework
CHAPTER 1
CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify as true or false. If false, explain why the statement is false.
1. GAAP is the term used to indicate the whole body of FASB authoritative literature. True
2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. False (all companies must comply to all standards and all disclosure requirements).
3. The primary governmental body that has influence over the FASB is the SEC. True
4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard. False
CA1-3 (Financial Reporting and Accounting Standards) Answer the following multiple-choice questions.
1. GAAP stands for: (d) generally accepted accounting principles.
2. Accounting standard-setters use the following process in establishing accounting standards: (d) Research, discussion paper, exposure draft, standard.
3. GAAP is comprised of: (d) any accounting guidance included in the FASB Codification.
4. The authoritative status of the conceptual framework is as follows.
(a) It is used when there is no standard or interpretation related to the reporting issues under consideration.
5. The objective of financial reporting places most emphasis on:
(a) Reporting to capital providers.
6. General-purpose financial statements are prepared primarily for: (b) External users.
7. Economic consequences of accounting standard-setting means: (d) Accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.
8. The expectations gap is: (b) What the public thinks accountants should do and what accountants think they can do.
Chapter 2
E2-5
(a) Arises from peripheral or incidental transactions. Gain / Losses
(b) Obligation to transfer resources arising from a past transaction.
CHAPTER 1
CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify as true or false. If false, explain why the statement is false.
1. GAAP is the term used to indicate the whole body of FASB authoritative literature. True
2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. False (all companies must comply to all standards and all disclosure requirements).
3. The primary governmental body that has influence over the FASB is the SEC. True
4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard. False
CA1-3 (Financial Reporting and Accounting Standards) Answer the following multiple-choice questions.
1. GAAP stands for: (d) generally accepted accounting principles.
2. Accounting standard-setters use the following process in establishing accounting standards: (d) Research, discussion paper, exposure draft, standard.
3. GAAP is comprised of: (d) any accounting guidance included in the FASB Codification.
4. The authoritative status of the conceptual framework is as follows.
(a) It is used when there is no standard or interpretation related to the reporting issues under consideration.
5. The objective of financial reporting places most emphasis on:
(a) Reporting to capital providers.
6. General-purpose financial statements are prepared primarily for: (b) External users.
7. Economic consequences of accounting standard-setting means: (d) Accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.
8. The expectations gap is: (b) What the public thinks accountants should do and what accountants think they can do.
Chapter 2
E2-5
(a) Arises from peripheral or incidental transactions. Gain / Losses
(b) Obligation to transfer resources arising from a past transaction.