Award: 10.00 points
Current cost is not one of the measurement attributes employed in GAAP.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
27.
Award: 10.00 points
The FASB's framework for measuring fair value doesn't change the situations in which fair value is used under current GAAP.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
28.
Award: 10.00 points
29.
Award: 10.00 points
The revenue/expense approach emphasizes determining the appropriate amounts of revenue and expense in each reporting period.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-10 Contrast a revenue/expense approach
and an asset/liability approach to accounting standard setting.
The asset/liability approach emphasizes matching to determine what assets and liabilities should be reflected on the balance sheet.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-10 Contrast a revenue/expense approach
and an asset/liability approach to accounting standard setting.
30.
Award: 10.00 points
In IFRS, the conceptual framework indicates appropriate accounting when a more specific accounting standard does not apply.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-11 Discuss the primary differences between
U.S. GAAP and IFRS with respect to the development of
accounting standards and the conceptual framework underlying
accounting standards.
31.
Award: 10.00 points
Political pressure never affects the IFRS standard-setting process.
True
False
References
True / False Difficulty: 1 Easy Learning Objective: 01-11 Discuss the primary differences between
U.S. GAAP and IFRS with respect to the development of
accounting standards and the conceptual framework underlying
accounting standards.
32.
Award: 10.00 points
External decision makers would not look primarily to financial accounting information to assist them in making decisions relating to:
Making loans to the company.
Estimates of the potential for future profits.
Compensation of company executives.
The purchase of stocks and bonds.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Describe the function and primary focus
of financial accounting.
33.
Award: 10.00 points
The primary focus for financial accounting information is to provide information useful for:
Investing decisions Credit decisions
a. Yes Yes
b. Yes No
c. No Yes
d. No No
Option c
Option a
Option b
Option d
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Describe the function and primary focus
of financial accounting.
34.
Award: 10.00 points
Which of the following groups is not among the external users for whom financial statements are prepared?
Customers, suppliers, and employees are all external users of financial statements
Employees
Suppliers
Customers
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-01 Describe the function and primary focus
of financial accounting.
35.
Award: 10.00 points
Which of the following is not true about net operating cash flow?
It is a measure used in accrual accounting and is recognized as the best predictor of future operating cash flows.
It is the difference between cash receipts and cash disbursements from providing goods and services.
Over short periods, it may not be indicative of long-run cash-generating ability.
It is easy to understand and all information required to measure it is factual.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-02 Explain the difference between cash
and accrual accounting.
36.
Award: 10.00 points
Which of the following groups is not among financial intermediaries?
Financial analysts
CPAs
Credit rating organizations
Mutual fund managers
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-01 Describe the function and primary focus
of financial accounting.