Intermediate Accounting Test Bank Chapter 1
CHAPTER 1
FINANCIAL ACCOUNTING AND
ACCOUNTING STANDARDS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
F 1. Definition of financial accounting. T 2. Purpose of financial statements. T 3. Definition of financial accounting. T 4. Capital allocation process. F 5. Financial reports. F 6. Fair value information. F 7. Objectives of financial reporting. F 8. Accrual accounting. T 9. Generally accepted accounting principles. T 10. Users of financial statements. F 11. Committee on Accounting Procedure. F 12. Passage of FASB standards. T 13. Financial Accounting Concepts. T 14. Creation of Accounting Principles Board. F 15. Definition of financial accounting. T 16. Code of Professional Conduct. F 17. Accounting standards. T 18. International standards. T 19. Expectations gap. F 20. Ethical issues.
Multiple Choice—Conceptual
Answer No. Description
a 21. Financial accounting. d 22. Users of financial reports. d 23. Identify the major financial statements. a 24. Financial reporting entity. d 25. Differences between financial and managerial accounting. b 26. Financial reporting communication. b P27. Managerial accounting. a 28. Capital allocation process. d 29. Efficient use of resources. d 30. Capital allocation process. c 31. Financial statement information. c 32. Accounting profession challenge. c 33. Financial reporting objective. d 34. Financial reporting objective. c 35. Objectives of financial reporting.
Multiple Choice—Conceptual (cont.)
Answer No. Description
b 36. Accrual accounting. c P37. Objectives of financial reporting. c 38. Meaning of “generally accepted.” b 39. Common set of standards and procedures. a 40. Limitation of general purpose financial statements. c 41. Securities and Exchange Commission and accounting standard setting. d 42. Due process in FASB standard setting. d 43. Organizations responsible for setting accounting standards. b 44. Reason
FINANCIAL ACCOUNTING AND
ACCOUNTING STANDARDS
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
F 1. Definition of financial accounting. T 2. Purpose of financial statements. T 3. Definition of financial accounting. T 4. Capital allocation process. F 5. Financial reports. F 6. Fair value information. F 7. Objectives of financial reporting. F 8. Accrual accounting. T 9. Generally accepted accounting principles. T 10. Users of financial statements. F 11. Committee on Accounting Procedure. F 12. Passage of FASB standards. T 13. Financial Accounting Concepts. T 14. Creation of Accounting Principles Board. F 15. Definition of financial accounting. T 16. Code of Professional Conduct. F 17. Accounting standards. T 18. International standards. T 19. Expectations gap. F 20. Ethical issues.
Multiple Choice—Conceptual
Answer No. Description
a 21. Financial accounting. d 22. Users of financial reports. d 23. Identify the major financial statements. a 24. Financial reporting entity. d 25. Differences between financial and managerial accounting. b 26. Financial reporting communication. b P27. Managerial accounting. a 28. Capital allocation process. d 29. Efficient use of resources. d 30. Capital allocation process. c 31. Financial statement information. c 32. Accounting profession challenge. c 33. Financial reporting objective. d 34. Financial reporting objective. c 35. Objectives of financial reporting.
Multiple Choice—Conceptual (cont.)
Answer No. Description
b 36. Accrual accounting. c P37. Objectives of financial reporting. c 38. Meaning of “generally accepted.” b 39. Common set of standards and procedures. a 40. Limitation of general purpose financial statements. c 41. Securities and Exchange Commission and accounting standard setting. d 42. Due process in FASB standard setting. d 43. Organizations responsible for setting accounting standards. b 44. Reason