Financial Reporting and Analysis: Using Financial Accounting Information 13th test bank
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Development of Generally Accepted Accounting Principles (GAAP) in the United States
KEY: Bloom's: Knowledge NOT: Time: 1 min.
26. Some industry practices lead to accounting reports that do not conform to the general theory that underlies accounting.
ANS: T PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Development of Generally Accepted Accounting Principles (GAAP) in the United States
KEY: Bloom's: Knowledge NOT: Time: 1 min.
27. All important events that influence the prospects for the entity are recorded and therefore are reflected in the financial statements.
ANS: F PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
28. The accrual basis of accounting recognizes revenue when realized (realization concept) and expenses when incurred (matching concept).
ANS: T PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
29. The cash basis recognizes revenue when cash is received and expenses when cash is paid.
ANS: T PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
30. The accountant records only the events that affect the financial position of the entity and that can be reasonably determined in monetary terms.
ANS: T PTS: 1 DIF: Difficulty: Easy