accounting
CHAPTER 1
FINANCIAL ACCOUNTING AND
ACCOUNTING STANDARDS
Multiple Choice—Conceptual
Answer No. Description d 1. Users of financial reports. d 2. Identify the major financial statements. a 3. Financial reporting entity. d 4. Efficient use of resources. d 5. Capital allocation process. c 6. Financial statement information. c 7. Objectives of financial reporting. b 8. Common set of standards and procedures. c 9. Role of SEC. c 10. Powers of the SEC. d 11. SEC enforcement. d 12. Creation of FASB. d 13. Appointment of FASB members. a 14. Purpose of the Financial Accounting Foundation. b 15. Characteristics of FASB. b 16. FASB and "due process" system. b 17. Publications of FASB. c 18. Purpose of FASB Technical Bulletins. d 19. Purpose of Emerging Issues Task Force. b 20. Purpose of GASB. c 21. Domain of GASB. c 22. Standard setting organizations. d 23. Identification of standard setting organizations. d 24. Nature of GAAP. d 25. Body which promulgates GAAP. d 26. Authoritative category of GAAP. d 27. Publications which are not GAAP. d 28. Publications which are not GAAP. a 29. Political environment of standard setting. c 30. International Accounting Standards Committee.
Exercises Item Description E1-31 Objectives of financial reporting. E1-32 Publications and organizations. E1-33 FASB. E1-34 Evolution of a statement of financial accounting standards. E1-35 Development of accounting principles.
CHAPTER LEARNING OBJECTIVES
1. Identify the major financial statements and other means of financial reporting. 2. Explain how accounting assists in the efficient use of scarce resources. 3. Identify some of the challenges facing accounting. 4. Identify the objectives of financial reporting. 5. Explain the need for accounting standards. 6. Identify the major policy-setting bodies and their role in the standards-setting process. 7. Explain the meaning of generally accepted
FINANCIAL ACCOUNTING AND
ACCOUNTING STANDARDS
Multiple Choice—Conceptual
Answer No. Description d 1. Users of financial reports. d 2. Identify the major financial statements. a 3. Financial reporting entity. d 4. Efficient use of resources. d 5. Capital allocation process. c 6. Financial statement information. c 7. Objectives of financial reporting. b 8. Common set of standards and procedures. c 9. Role of SEC. c 10. Powers of the SEC. d 11. SEC enforcement. d 12. Creation of FASB. d 13. Appointment of FASB members. a 14. Purpose of the Financial Accounting Foundation. b 15. Characteristics of FASB. b 16. FASB and "due process" system. b 17. Publications of FASB. c 18. Purpose of FASB Technical Bulletins. d 19. Purpose of Emerging Issues Task Force. b 20. Purpose of GASB. c 21. Domain of GASB. c 22. Standard setting organizations. d 23. Identification of standard setting organizations. d 24. Nature of GAAP. d 25. Body which promulgates GAAP. d 26. Authoritative category of GAAP. d 27. Publications which are not GAAP. d 28. Publications which are not GAAP. a 29. Political environment of standard setting. c 30. International Accounting Standards Committee.
Exercises Item Description E1-31 Objectives of financial reporting. E1-32 Publications and organizations. E1-33 FASB. E1-34 Evolution of a statement of financial accounting standards. E1-35 Development of accounting principles.
CHAPTER LEARNING OBJECTIVES
1. Identify the major financial statements and other means of financial reporting. 2. Explain how accounting assists in the efficient use of scarce resources. 3. Identify some of the challenges facing accounting. 4. Identify the objectives of financial reporting. 5. Explain the need for accounting standards. 6. Identify the major policy-setting bodies and their role in the standards-setting process. 7. Explain the meaning of generally accepted