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.
18. Accountants face a problem of when to recognize revenue. Which of the following methods of recognizing revenue is not used in practice?
| a. | Point of sale |
| b. | Point of order acceptance |
| c. | End of production |
| d. | Receipt of cash |
| e. | Revenue recognized during production |
ANS: B PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Reporting | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
19. The organization that has by federal law the responsibility to adopt auditing standards is the:
| a. | New York Stock Exchange. |
| b. | Public Company Accounting Oversight Board. |
| c. | Accounting Principles Board. |
| d. | Financial Accounting Standards Board. |
| e. | AICPA Committee on Accounting Procedure. |
ANS: B 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.
20. By law, the setting of accounting standards is the responsibility of the:
| a. | AICPA Committee on Accounting Procedure. |
| b. | New York Stock Exchange. |
| c. | Accounting Principles Board. |
| d. | Securities and Exchange Commission. |
| e. | Financial Accounting Standards Board. |