ACC 6501 Exam 1 Review Questions and
Answers 100% Solved Graded A+
What does it mean to state that the accounting process should support
decisions and informed judgments? - It means that accounting is a
service activity that helps many different users of accounting information
who use the info...
What does it mean to state that the accounting process should support
decisions and informed judgments? - ✔✔It means that accounting is a
service activity that helps many different users of accounting information
who use the information in many ways
What does it mean to work in public accounting? - ✔✔It means to perform
professional services for clients principally in the areas of auditing, income
tases, management consulting, and/or accounting systems evaluation and
development.
What does it mean to be a CPA? - ✔✔It means that the individual has met
the educational requirements and has passed the uniform examination.
Subsequently, the individual has met the experience requirements and has
applied for and been issued a license by the state board of accountancy
granting the individual the right to practice as a Certified Public Accounting.
What does it mean to state that generally accepted accounting principles
are not a set of rules to be blindly followed? - ✔✔It means that generally
,accepted accounting principles sometimes permit alternative ways of
accounting for identical transactions, thus requiring professional judgment,
and that these principles are still evolving
What does it mean when the FASB issues a new Accounting Standards
Update? - ✔✔It means that the FASB has completed an extensive process
of research and development, including receiving input from interested
individuals and organizations, and has made an authoritative
pronouncement (i.e., an Update to the FASB codification) that defines
accounting and reporting for a specific activity or transaction and becomes
a generally accepted accounting principle.
What does it mean that the FASB and IASB have been working together to
achieve convergence? - ✔✔It means that the FASB is committed to
working with the IASB to ensure that a solution can be reached whereby
US accounting standards will eventually be merged with international
accounting standards to the greatest extent possible.
What does it mean to state that ethical behavior includes being objective
and independent? - ✔✔It means that the individual is impartial, free from
conflict of interest, and will not receive a personal gain rom the activity in
which she or he is involved.
, What does it mean to state that the objectives of financial reporting given in
Statements of Financial Accounting Concepts No. 8 provide a framework
for this text? - ✔✔It means that the accounting and financial reporting
topics explained in the financial accounting part of the text should:
- related to external financial reporting
- support business and economic decisions
- provide information about cash flows
- focus on earnings based on accrual accounting
- not seek to directly measure the value of a business enterprise
- report information that is subject to evaluation by individual financial
statement users
What does it mean to say that there has been an accounting transaction
between you and your school? Give an example of such a transaction. -
✔✔It means that there has been some sort of economic interchange; for
example, you have agreed to pay tuition in exchange for classes.
What does it mean to refer to a balance sheet for the year ended August
31, 2020? - ✔✔It means the persons doing this is really mixed up because
the balance sheet presents data as a point in time. It's a balance sheet as
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