96.
Award: 10.00 points
Which of the following Statements of Financial Accounting Concepts defines the 10 elements of financial statements?
SFAC 3
SFAC 5
SFAC 6
SFAC 4
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-07 Identify the objective and qualitative
characteristics of financial reporting information and the elements
of financial statements.
97.
Award: 10.00 points
Primecoat Corporation could disseminate its annual financial statements two days earlier if it shifted substantial human resources from other operations to
the annual report project. Management decided the value of the earlier report was not worth the added commitment of resources. The concept
demonstrated is:
Materiality.
Timeliness.
Cost-effectiveness.
Relevance.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-07 Identify the objective and qualitative
characteristics of financial reporting information and the elements
of financial statements.
98.
Award: 10.00 points
Mega Loan Company has very stringent credit requirements and, accordingly, has negligible losses from uncollectible accounts. The company's
independent accountants did not protest when, contrary to GAAP, the company recorded bad debt expense only when specific accounts were determined
to be uncollectible, rather than use an allowance for uncollectible accounts. The concept demonstrated is:
Cost-effectiveness.
Materiality.
Comparability.
Faithful representation.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-07 Identify the objective and qualitative
characteristics of financial reporting information and the elements
of financial statements.
99.
Award: 10.00 points
Four different competent accountants independently agree on the amount and method of reporting an economic event. The concept demonstrated is:
Verifiability.
Completeness.
Comparability.
Reliability.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-07 Identify the objective and qualitative
characteristics of financial reporting information and the elements
of financial statements.
100.
Award: 10.00 points
An important argument in support of historical cost information is:
Verifiability.
Relevance.
Predictive quality for future cash flows.
Materiality.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
101.
Award: 10.00 points
The conceptual framework's recognition and measurement concepts recognize which one of the following as an assumption?
Realization
Full disclosure
Going concern
Historical cost
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-08 Describe the four basic assumptions
underlying GAAP.
102.
Award: 10.00 points
The assumption that in the absence of contrary information a business entity will continue indefinitely is the:
Entity assumption.
Historical cost assumption.
Going concern assumption.
Periodicity assumption.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-08 Describe the four basic assumptions
underlying GAAP.
103.
Award: 10.00 points
Long-lived, revenue-producing assets are measured at:
Depreciation (or amortized) cost.
Current cost.
Fair value.
Present value.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-08 Describe the four basic assumptions
underlying GAAP.
104.
Award: 10.00 points
If a company has declared bankruptcy, its financial statements likely violate the:
Going concern assumption.
Stable monetary unit assumption.
Fair value measurement approach.
Present value measurement approach.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-08 Describe the four basic assumptions
underlying GAAP.
105.
Award: 10.00 points
Which of the following is typically characterized as a principle, rather than an assumption?
Full disclosure
Conservatism
Periodicity
Monetary unit
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-08 Describe the four basic assumptions