Cost of gathering data to comply with a given standard was prohibitive.
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.
61.
Award: 10.00 points
The most recent example of the political process at work in standard-setting is the controversy surrounding the:
Implementation of the fair value standard.
FASB Accounting Standards Codification.
Creation of the FASB.
Accounting for employee stock options.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-04 Explain why establishing accounting
standards is characterized as a political process.
62.
Award: 10.00 points
Independent auditors express an opinion on the:
Soundness of a company's future.
Accuracy of financial statements.
Quality of a company's management.
Fairness of financial statements.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-05 Explain factors that encourage high-
quality financial reporting.
63.
Award: 10.00 points
The possibility that the capital markets' focus on periodic profits may tempt a company's management to bend or even break accounting rules to inflate
reported net income is an example of:
A technical accounting issue.
An auditor's responsibility to inform the SEC.
An accounting theory issue.
An ethical dilemma.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-05 Explain factors that encourage high-
quality financial reporting.
64.
Award: 10.00 points
One of the elements that many believe distinguishes a profession from other occupations is the acceptance of responsibility by its members for the
interests of those it serves, which is often articulated in:
Its code of ethics.
State laws.
Its conceptual framework.
Federal laws.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-05 Explain factors that encourage high-
quality financial reporting.
65.
Award: 10.00 points
The motivation to behave ethically should come from:
Codes of ethics.
Fear of penalties for violating professional codes.
Frameworks for resolving ethical dilemmas.
Within oneself.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-05 Explain factors that encourage high-
quality financial reporting.
66.
Award: 10.00 points
SFAC 8 of the conceptual framework focuses on:
Presentation and disclosure.
Recognition and measurement.
Elements of financial statements.
Objective and qualitative characteristics.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-06 Explain the purpose of the conceptual
framework.
67.
Award: 10.00 points
The FASB's conceptual framework's qualitative characteristics of accounting information include:
Faithful representation.
Historical cost.
Realization.
Full disclosure.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-07 Identify the objective and qualitative
characteristics of financial reporting information and the elements
of financial statements.
68.
Award: 10.00 points
The FASB's conceptual framework's qualitative characteristics of accounting information include:
Full disclosure.
Historical cost.
Relevance.
Going concern.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-07 Identify the objective and qualitative
characteristics of financial reporting information and the elements
of financial statements.
69.
Award: 10.00 points
The conceptual framework's qualitative characteristic of relevance includes:
Predictive value.
Completeness.
Verifiability.
Neutrality.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-07 Identify the objective and qualitative
characteristics of financial reporting information and the elements
of financial statements.
70.
Award: 10.00 points
The conceptual framework's qualitative characteristic of faithful representation includes:
Neutrality.