and the elements of financial
statements.
Difficulty: 2 Medium Learning Objective: 01-08
Describe the four basic
assumptions underlying GAAP.
134.
Award: 10.00 points
Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct number code
for the term.
TERM PHRASE
Term number that matches the
phrase.
1. Historical cost Basis of measurement for fixed assets. ____
2. Materiality Discounts future cash flows. ____
3. Revenue recognition Occurs when goods or services are transferred to the customer. ____
4. Full disclosure Reporting of all information that could affect decisions. ____
5. Present value Application of GAAP sometimes avoided under this constraint. ____
TERM PHRASE
Term number that matches the
phrase.
1. Historical cost Basis of measurement for fixed assets. 1
2. Materiality Discounts future cash flows. 5
3. Revenue recognition Occurs when goods or services are transferred to the customer. 3
4. Full disclosure Reporting of all information that could affect decisions. 4
5. Present value Application of GAAP sometimes avoided under this constraint. 2
References
Essay Learning Objective: 01-06
Explain the purpose of the
conceptual framework.
Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
Difficulty: 2 Medium Learning Objective: 01-07
Identify the objective and
qualitative characteristics of
financial reporting information
and the elements of financial
statements.
135.
Award: 10.00 points
Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct number code
for the term.
TERM PHRASE
Term number that matches the
phrase.
1. Financial Accounting Standards Board Undermines representational faithfulness by being inconsistent with neutrality. ____
2. Accounting Principles Board It established GAAP before the FASB. ____
3. Conservatism Its EITF Issues are GAAP when entered in the Accounting Standards Codification. ____
4. American Institute of CPAs (AICPA) It has the authority to set U.S. accounting standards. ____
5. Securities and Exchange Commission It is the national organization for CPAs in the United States. ____
TERM PHRASE
Term number that matches the
phrase.
1. Financial Accounting Standards Board Undermines representational faithfulness by being inconsistent with neutrality. 3
2. Accounting Principles Board It established GAAP before the FASB. 2
3. Conservatism Its EITF Issues are GAAP when entered in the Accounting Standards Codification. 1
4. American Institute of CPAs (AICPA) It has the authority to set U.S. accounting standards. 5
5. Securities and Exchange Commission It is the national organization for CPAs in the United States. 4
References
Essay Learning Objective: 01-03 Define
generally accepted accounting
principles (GAAP) and discuss
the historical development of
accounting standards, including
convergence between U.S. and
international standards.
Learning Objective: 01-07 Identify the objective and qualitative
characteristics of financial reporting information and the elements
of financial statements.
136.
Award: 10.00 points
Difficulty: 2 Medium Learning Objective: 01-05
Explain factors that encourage
high-quality financial reporting.
Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct number code
for the term.
TERM PHRASE
Term number that matches the
phrase.
1. Expenses Net assets. ____
2. Equity Outflows of resources to generate revenues. ____
3. Distributions to owners Cash dividends. ____
4. Investments by owners Claims of creditors against the assets of a business. ____
5. Liabilities Transfers of resources in exchange for common and preferred stock. ____
TERM PHRASE
Term number that matches the
phrase.
1. Expenses Net assets. 2
2. Equity Outflows of resources to generate revenues. 1
3. Distributions to owners Cash dividends. 3
4. Investments by owners Claims of creditors against the assets of a business. 5
5. Liabilities Transfers of resources in exchange for common and preferred stock. 4
References
Essay Difficulty: 1 Easy Learning Objective: 01-07 Identify the objective and qualitative
characteristics of financial reporting information and the elements
of financial statements.
137.
Award: 10.00 points
Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct number code