Topic: 01-15 Understanding Ethics
28. Ethics and social responsibility are incidental to the primary functions of accounting.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-04 Identify and explain why ethics and social responsibility are crucial to accounting.
Topic: 01-14 Ethics and Social Responsibility
29. Ethical practices are not necessary to build trust and long-term relationships with customers.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-04 Identify and explain why ethics and social responsibility are crucial to accounting.
Topic: 01-15 Understanding Ethics
30. Social responsibility is concern for the impact of our actions on society as a whole.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-04 Identify and explain why ethics and social responsibility are crucial to accounting.
Topic: 01-16 Social Responsibility
31. The underlying concepts that make up acceptable accounting practices are referred to as generally accepted accounting principles (GAAP).
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-17 Generally Accepted Accounting Principles (GAAP)
32. Verifiability ensures that information is complete, neutral and free from error.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Hard
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
33. The Accounting Standards Board (AcSB), is the body that developed the International Financial Reporting Standards.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
34. The Accounting Standards Board (AcSB), is the body that developed accounting standards for private enterprises (ASPE).
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
35. International Accounting Standards have been created to improve comparability of accounting information across countries.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
36. Private enterprises are all required to report using International Financial Reporting Standards (IFRS).
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
37. The primary purpose of Generally Accepted Accounting Principles is to ensure the usefulness of financial information.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
38. The Historical cost principle states that if no cash is involved in a transaction the cash-equivalent value must be used.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
39. The currency principle means that transactions are expressed using units of money as the common denominator.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
40. The assumption that a business will continue to operate until it can sell its assets to pay its creditors underlies the going concern principle.