TEST BANK
Intermediate Accounting, 18th Edition
by Kieso, Warfield Chapter 1 - 23 Complete
,Table of Contents
O O
1OTheOEnvironmentOandOConceptualOFrameworkOofOFinancialOReporting
2OTheOAccountingOInformationOSystem
3OIncomeOStatement,ORelatedOInformation,OandORevenueORecognition
4OBalanceOSheetOandOStatementOofOCashOFlows
5OAccountingOandOtheOTimeOValueOofOMoney
6OCashOandOReceivables
7OValuationOofOInventories:OAOCost-BasisOApproach
8OInventories:OAdditionalOValuationOIssues
9OAcquisitionOandODispositionOofOProperty,OPlant,OandOEquipment
10ODepreciation,OImpairments,OandODepletion
11OIntangibleOAssets
12OCurrentOLiabilitiesOandOContingencies
13OLong-TermOLiabilities
14OStockholders’OEquity
15ODilutiveOSecuritiesOandOEarningsOperOShare
16OInvestments
17ORevenueORecognition
18OAccountingOforOIncomeOTaxes
19OAccountingOforOPensionsOandOPostretirementOBenefits
20OAccountingOforOLeases
21OAccountingOChangesOandOErrorOAnalysis
22OStatementOofOCashOFlows
23OFullODisclosureOinOFinancialOReportingO
, CHAPTER 1 O
THE ENVIRONMENT AND CONCEPTUAL FRAMEWORK
O O O O
OF FINANCIAL REPORTING O O O
IFRSOquestionsOareOavailableOatOtheOendOofOthisOchapter.
TRUE-FALSE—Conceptual
1. FinancialOstatementsOareOtheOprincipalOmeansOthroughOwhichOaOcompanyOcommunicatesOit
sOfinancialOinformationOtoOthoseOoutsideOit.
Ans:O T,O LO:O 1,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O
IMA:O ReportingO &O Control:OFinancialOStatementOPreparation,OIFRS:ONone
2. UsersO ofO financialO reportsO ofO aO companyO useO theO informationO providedO byO theseO report
sO toOmakeOcapitalOallocationOdecisions.
Ans:O T,O LO:O 1,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O
IMA:O ReportingO &O Control:OFinancialOStatementOPreparation,OIFRS:ONone
3. AnOeffectiveOprocessOofOcapitalOallocationOprovidesOanOefficientOmarketOforObuyingOandOsell
ingOsecuritiesOandOobtainingOandOgrantingOcredit.
Ans:O T,O LO:O 1,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O
IMA:O ReportingO &O Control:OFinancialOStatementOPreparation,OIFRS:ONone
4. InvestorsOareOinterestedOinOfinancialOreportingObecauseOitOprovidesOinformationOthatOisOusef
ulOforOmakingOdecisions.
Ans:O T,O LO:O 1,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O
IMA:O ReportingO &O Control:OFinancialOStatementOPreparation,OIFRS:ONone
5. UsersO ofO financialO accountingO statementsO haveO bothO coincidingO andO conflictingO needs
O forOinformationOofOvariousOtypes.
Ans:O T,O LO:O 1,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O
IMA:O ReportingO &O Control:OFinancialOStatementOPreparation,OIFRS:ONone
6. AlthoughOtheOFASBOhasOdevelopedOaOconceptualOframework,OnoOStatementsOofOFinancialO
AccountingOConceptsOhaveObeenOissuedOtoOdate.
Ans:OF,OLO:O1,OBloom:OK,ODifficulty:OModerate,OMin:O1,OAACSB:OKnowledge,OAICPAOBC:ONone,OAICPAOAC:OReporting,OAICPAOPC:ONone,OI
MA:OReportingO&O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
7. TheOpassageOofOaOnewOFASBOAccountingOStandardsOUpdateOrequiresOtheOsupportOofOfiveO
ofO theOsevenOboardOmembers.
Ans:O F,O LO:O 1,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O
IMA:O ReportingO &O Control:OFinancialOStatementOPreparation,OIFRS:ONone
8. StatementsOofOFinancialOAccountingOConceptsOsetOforthOfundamentalOobjectivesOandO conc
eptsOthatOareOusedObyOtheOFASBOinOdevelopingOfutureOstandardsOofOfinancialOaccountingOa
ndOreporting.
Ans:O T,O LO:O 1,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O
IMA:O ReportingO &O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
9. TheOFASB’sOCodificationOcreatesOaOnewOsetOofOGAAP.
Ans:O F,O LO:O 1,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O
IMA:O ReportingO &O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
, 1O-O2 TestOBankOforOIntermediateOAccounting,OEighteenthOEditio
n
10. TheOobjectiveOofOfinancialOreportingOisOtoOreportOtheOplansOmadeObyOaOcompanyOtoOimprov
eOtheOproductivityOofOitsOemployees.
Ans:O F,O LO:O 1,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O I
MA:O ReportingO &O Control:OFinancialOStatementOPreparation,OIFRS:ONone
11. AO soundlyO developedO conceptualO frameworkO enablesO theO FASBO toO issueO moreO usefulO
andOconsistentOpronouncementsOoverOtime.
Ans:O T,O LO:O 2,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O I
MA:O ReportingO &O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
12. AOconceptualOframeworkOisOaOcoherentOsystemOofOconceptsOthatOflowOfromOanOobjective.
Ans:O T,O LO:O 2,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O I
MA:O ReportingO &O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
13. TheO firstO levelO ofO theO conceptualO frameworkO identifiesO theO recognition,O measurement,O
andOdisclosureOconceptsOusedOinOestablishingOaccountingOstandards.
Ans:O F,O LO:O 2,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O I
MA:O ReportingO &O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
14. TheOobjectiveOofOfinancialOreportingOservesOasOtheOfoundationOofOtheOconceptualOframework.
Ans:O T,O LO:O 2,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O I
MA:O ReportingO &O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
15. UsersOofOfinancialOstatementsOareOassumedOtoOneedOnoOknowledgeOofObusinessOandOfinan
cialOaccountingOmattersOtoOunderstandOtheOinformationOcontainedOinOfinancialOstatements.
Ans:O F,O LO:O 2,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O I
MA:O ReportingO &O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
16. RelevanceO andO faithfulO representationO areO theO twoO fundamentalO qualitiesO thatO mak
eOaccountingOinformationOusefulOforOdecision-making.
Ans:O T,O LO:O 2,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O I
MA:O ReportingO &O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
17. TheOideaOofOconsistencyOdoesOnotOmeanOthatOcompaniesOcannotOswitchOfromOoneOaccoun
tingOmethodOtoOanother.
Ans:OT,OLO:O2,OBloom:OC,ODifficulty:OModerate,OMin:O1,OAACSB:OKnowledge,OAICPAOBC:ONone,OAICPAOAC:OReporting,OAICPAOPC:ONone,OIM
A:OReportingO&O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
18. TimelinessOandOneutralityOareOtwoOingredientsOofOrelevance.
Ans:O F,O LO:O 2,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O I
MA:O ReportingO &O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
19. VerifiabilityOandOpredictiveOvalueOareOtwoOingredientsOofOfaithfulOrepresentation.
Ans:O F,O LO:O 2,O Bloom:O K,O Difficulty:O Easy,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O Reporting,O AICPAO PC:O None,O I
MA:O ReportingO &O Control:OFinancialOStatementOAnalysis,OIFRS:ONone
20. Revenues,Ogains,OandOdistributionsOtoOownersOallOincreaseOequity.
Ans:O F,O LO:O 2,O Bloom:O C,O Difficulty:O Moderate,O Min:O 1,O AACSB:O Knowledge,O AICPAO BC:O None,O AICPAO AC:O MeasurementO AnalysisO and
O Interpretation,O AICPAOPC:ONone,OIMA:OReportingO&OControl:OFinancialOStatementOAnalysis,OIFRS:ONone
21. ComprehensiveO incomeO includesO allO changesO inO equityO duringO aO periodO exceptO th
oseOresultingOfromOinvestmentsObyOownersOandOdistributionsOtoOowners.
Ans:OT,OLO:O2,OBloom:OK,ODifficulty:OEasy,OMin:O1,OAACSB:OKnowledge,OAICPAOBC:ONone,OAICPAOAC:OMeasurementOAnalysisOandOInterpr
etation,OAICPAO PC:ONone,OIMA:OReportingO&OControl:OFinancialOStatementOAnalysis,OIFRS:ONone
