Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
68. Financial statements in the early 2000s provided information
a. related to nonfinancial measurements.
b. that was forward-looking data.
c. related to hard assets (inventory and plant assets).
d. that was issued real-time.
Ans: c
LO:1.4
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
69. Which of the following is not a major challenge facing the accounting profession?
a. Nonfinancial measurements.
b. Timeliness.
c. Accounting for hard assets.
d. Forward-looking information.
Ans: c
LO:1.4
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
test bank for Intermediate Accounting: IFRS Edition,4e
1 - 28
70. The quote “The pressures don’t explode on us; they build, and we often don’t recognize
them until they have us” is describing how:
a. ethical dilemmas can occur.
b. politics influences the standard-setting process.
c. the disclosure of voluntary financial information can backfire on a company.
d. non-financial measures have proven useful for investors.
Ans: a
LO:1.4
Bloom: C
Difficulty: Medium
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
Financial Reporting and Accounting Standards
1 - 29
71. What is "the expectations gap"?
a. The difference between what the public thinks accountants are not doing and what the
accountants knows they don't do.
b. The difference between what the public thinks accountants should do and what
Congress says accountants should do.
c. The difference between what the public thinks accountants should do and what the
accountants thinks they can do.
d. The difference between what accountants should do and what the Courts say the
accountants should be doing.
Ans: c
LO:1.4
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
72. Which of the following is intended to apply pressure when an individual is encountering an
ethical decision?
a. Just play the game.
b. Will my boss be upset?
c. Will this affect my job performance negatively?
d. Will my colleagues be unhappy with me?
Ans: a
LO:1.4
Bloom: C
Difficulty: Medium
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
73. The international financial reporting environment includes challenges in financial reporting
including all of the following except:
a. Political environment.
b. Expectations gap.
c. Decision-usefulness.
d. Ethics.
Ans: c
LO:1.4
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
test bank for Intermediate Accounting: IFRS Edition,4e
1 - 30
AICPA PC: Problem Solving and Decision-making
IMA: None
74. Significant financial reporting issues facing global financial reporting and efficient capital
allocation include all of the following except:
a. How to provide backward-looking information.
b. How to report nonfinancial measures such as customer satisfaction.
c. How to provide forward-looking information.
d. How to provide real-time financial statement information.
Ans: a
LO:1.4
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
75. Which of the following is considered a non-financial measurement?
a. backlog information.
b. customer satisfaction indexes.
c. reject rates on goods purchased.
d. All of the choices are non-financial measurements.
Ans: d
LO:1.4
Bloom: K
Difficulty: Easy
Min: 2-4
AACSB: Analytic
AICPA BB: Strategic/Critical Thinking
AICPA FN: Measurement
AICPA PC: Problem Solving and Decision-making
IMA: None
Multiple Choice Answers
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