Financial Reporting and Analysis: Using Financial Accounting Information 13th test bank
a.
conservatism.
b.
materiality.
c.
going concern.
d.
time period.
e.
None of the answers are correct.
ANS: C 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.
6. The business being separate and distinct from the owners is an integral part of the:
a.
time period assumption.
b.
going concern assumption.
c.
business entity assumption.
d.
realization assumption.
e.
None of the answers are correct.
ANS: C 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.
7. The principle that assumes the reader of the financial statements is not interested in the liquidation values is:
a.
conservatism.
b.
matching.
c.
time period.
d.
realization.
e.
None of the answers are correct.
ANS: E 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.
8. An accounting period that ends when operations are at a low ebb is:
a.
a calendar year.
b.
a fiscal year.
c.
the natural business year.
d.
an operating year.
e.
None of the answers are correct.
ANS: C 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.
9. The accounting principle that assumes that inflation will not take place or will be immaterial is:
a.
monetary unit.
b.
historical cost.
c.
realization.
d.
going concern.
e.
None of the answers are correct.