ANS: D 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: Comprehension
NOT: Time: 1 min.
13. The assumption that deals with when to recognize the costs that are associated with the revenue that is being recognized is:
| a. | matching. |
| b. | going concern. |
| c. | consistency. |
| d. | materiality. |
| e. | None of the answers are correct. |
ANS: A 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.
14. The most significant current source of generally accepted accounting principles is the:
| a. | New York Stock Exchange. |
| b. | Accounting Principles Board. |
| c. | Accounting Research Studies. |
| d. | AICPA committee on Accounting Procedure. |
| e. | Financial Accounting Standards Board. |
ANS: E PTS: 1 DIF: Difficulty: Moderate
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.
15. All but one of the following statements indicates a difference between the Financial Accounting Standards Board (FASB) and prior approaches. Select the one that is