Multiple Choice Difficulty: 1 Easy 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.
45.
Award: 10.00 points
The FASB issues accounting standards in the form of:
Financial Technical Bulletins.
Financial Accounting Standards.
Accounting Research Bulletins.
Accounting Standards Updates.
References
Multiple Choice Difficulty: 1 Easy 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.
46.
Award: 10.00 points
Pronouncements issued by the Committee on Accounting Procedures:
Were the outcome of research studies and a theoretical framework.
Originated from congressional studies and SEC directives.
Dealt with specific accounting and reporting problems.
Were based on exposure drafts and public comment letters.
References
Multiple Choice Difficulty: 1 Easy 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.
47.
Award: 10.00 points
The FASB's standard-setting process includes, in the correct order:
Research, exposure draft, discussion paper, Accounting Standards Update.
Discussion paper, research, exposure draft, Accounting Standards Update.
Exposure draft, research, discussion paper, Accounting Standards Update.
Research, discussion paper, exposure draft, Accounting Standards Update.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-04 Explain why establishing accounting
standards is characterized as a political process.
48.
Award: 10.00 points
Which of the following is not a provision of the Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley)? The Act:
Changed the entity responsible for setting accounting standards.
Regulates the types of non-audit services that can be performed by auditors for audit clients.
Requires rotation of the lead partner on an audit every five years.
Increased accountability of corporate executives.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-05 Explain factors that encourage high-
quality financial reporting.
49.
Award: 10.00 points
CPAs are licensed by:
State governments.
The SEC.
The AICPA.
The federal government.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-05 Explain factors that encourage high-
quality financial reporting.
50.
Award: 10.00 points
Which of the following has the statutory authority to set accounting standards in the United States?
AICPA
FASB
IRS
SEC
References
Multiple Choice Difficulty: 1 Easy 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.
51.
Award: 10.00 points
When a registrant company submits its annual filing to the SEC, it uses:
Form 10-Q.
Form 10-K.
Form 10-A.
Form S-1.
References
Multiple Choice Difficulty: 1 Easy 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.
52.
Award: 10.00 points
The most likely important flaw leading to the demise of the APB was the perceived lack of:
Independence.
Importance.
Competence.
Confidence.
References
Multiple Choice Difficulty: 2 Medium 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.
53.
Award: 10.00 points
Accounting standard-setting has been characterized as:
Using the scientific method.
A political process.
Pure deductive reasoning.
Pure inductive reasoning.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-04 Explain why establishing accounting