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INTERMEDIATE ACCOUNTING Q&A
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INTERMEDIATE ACCOUNTING Q&A
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INTERMEDIATE ACCOUNTING Q&AFinancial information that is better provided, or can only be provided, by means of
financial reporting other than formal financial statements include all of the following
except:
President's letter.
Cash flow information.
News releases.
Management's forecasts. - Answer-Cash flow information.
An effective capital allocation process:
promotes productivity.
encourages innovation.
provides an efficient market for buying and selling securities.
all of these choices are correct. - Answer-all of these choices are correct.
The objective of general purpose financial reporting adopts an entity perspective, which
means that:
financial reporting should be focused on assessing the company's stewardship.
financial reporting should be focused solely on the needs of the owners.
companies are viewed as separate and distinct from their owners.
none of these answer choices are correct. - Answer-companies are viewed as separate
and distinct from their owners.
Which of the following would result if there was not a set of generally accepted and
universally practiced accounting standards?
It would be almost impossible to prepare statements that could be compared.
Each company would have to develop its own standards.
Readers of financial statements would have to familiarize themselves with every
company's peculiar accounting and reporting practices.
, All of these answer choices are correct. - Answer-All of these answer choices are
correct.
The passage new FASB guidance in the form of an Accounting Standards Update
requires the support of four of the seven Board members.
True
False - Answer-True
The Financial Accounting Standards Advisory Council (FASAC) consults with the FASB
on major policy and technical issues and helps select task force members.
True
False - Answer-True
Which group selects members of the FASB?
SEC (Securities and Exchange Commission).
AICPA (American Institute of Certified Public Accountants).
FASAC (Financial Accounting Standards Advisory Council).
FAF (Financial Accounting Foundation). - Answer-FAF (Financial Accounting
Foundation).
Which of the following is not a significant difference between the FASB (Financial
Accounting Standards Board) and its predecessor, the APB?
Increased independence.
Broader representation.
Greater autonomy.
Larger membership. - Answer-Larger membership.
The organization that provides implementation guidance within the framework of the
Codification to reduce diversity in practice on a timely basis is the
FASAC (Financial Accounting Standards Advisory Council).
AICPA (American Institute of Certified Public Accountants).
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