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Test bank For Intermediate Accounting I : Practice Exam 1 (11th Edition by David Spiceland)
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Test bank For Intermediate Accounting I : Practice Exam 1 (11th Edition by David Spiceland)
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Test bank For Intermediate AccountingI : Practice Exam 1 (11th Edition by
David Spiceland)
Which of the following is related to an effective capital allocation?
A. Promoting productivity
B. Encouraging innovation
C. Providing a efficient market for buying and selling securities
D. All of the above - ANSD. All of the above
Financial statements in the early 2000's provide information related to:
A. Non-financial measurements
B. Forward-looking data
C. Hard assets (inventory and plant assets)
D. None of the above - ANSC. Hard assets (inventory and plant assets)
A common set of accounting standards and procedures are called:
A. Financial accounting standards
B. Generally accepted accounting principles
C. Objectives of financial reporting
D. Statement of financial accounting concepts - ANSB. Generally accepted accounting
principles
What is the relationship between the Securities and Exchange Commission and accounting
standard setting in the United States?
A. The SEC requires all companies listed on an exchange to submit their financial statements to
the SEC.
B. The SEC coordinates with the AICPA in establishing accounting standards.
C. The SEC has a mandate to establish accounting standards for enterprises under its
jurisdiction.
D. The SEC review financial statements for compliance. - ANSC. The SEC has a mandate to
establish accounting standards for enterprises under its jurisdiction.
Why did the AICPA create the Accounting Principle Board?
, A. The SEC disbanded the previous standard setting organization.
B. The previous standard setting organization did not provide a structured set of accounting
principles.
C. No such organization existed in the past.
D. None of the above - ANSB. The previous standard setting organization did not provide a
structured set of accounting principles.
What is a possible danger if politics plays too big a role in accounting standard setting?
A. Accounting standards that are not truly generally accepted.
B. Individuals may influence the standards.
C. User groups become active.
D. The FASB delegates its authority to elected officials. - ANSA. Accounting standards that are
not truly generally accepted.
Which of the following is NOT true concerning a conceptual framework in accounting?
A. It should be a basis for standard-setting.
B. It should allow practical problems to be solved more quickly by reference to it.
C. It should be based on fundamental truths that are derived from the laws of nature.
D. All of the above are true. - ANSD. All of the above are true.
Which of the following is a primary quality of useful accounting information?
A. Conservatism
B. Comparability
C. Faithful Representation
D. Consistency - ANSC. Faithful Representation
The underlying theme of the conceptual framework is?
A. Decision usefulness
B. Understandability
C. Faithful representation
D. Comparability - ANSA. Decision usefulness
What is meant by consistency when discussing financial accounting information?
A. Information that is measured and reported in a similar fashion across points in time.
B. Information is timely.
C. Information is measured similarity across the industry.
D. Information is verifiable. - ANSA. Information that is measured and reported in a similar
fashion across points in time.
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