ACCT 5305 QUIZ QUESTIONS AND ANSWERS (VERIFIED)
100% CORRECT, SCORE A+
An accountant in this role may perform accounting research in order to
understand accounting positions of the companies or industries his/her agency
oversees, and these individuals may send comment letters to the extent they
question a given position.
a. Regulator
b. Investor
c. Auditor
d. Corporate accountant Answer - Regulator
As a result of the Private Company Council's work,
a. Anytime a new ASU is issued, private companies will be granted one
additional year to apply the guidance.
b. Accounting alternatives are now available to private companies within the
codification
c. It is not optional for private companies to apply the FASB codification
,d. Private company auditors must follow certain standards issued by the PCAOB
Answer - Accounting alternatives are now available to private companies
within the codification
Why was the private company council created to advise the FASB? That is, what
is the concern this body was created to address?
a. The concern that GAAP is currently too complex and too costly for private
companies to apply
b. The concern that audit standards for private companies are beginning to
diverge from audit standards for public companies due to new PCAOB
issuances
c. The concern that private companies should be able to follow the same
standards as governmental entities
d. The concern that GAAP for private companies is not adequately converged
with IFRS for private companies Answer - The concern that GAAP is currently
too complex and too costly for private companies to apply
Which of the following was not a criticism of the early standard-setting boards,
the CAP and APB?
a. The boards moved too quickly, issuing guidance that was not sufficiently
vetted
b. The boards lacked independence, because the members served in only part-
time capacity
,c. The boards did not have a common conceptual framework serving as a
foundation for their decisions
d. The boards did not respond to emerging issues in a timely manner Answer -
The boards moved too quickly, issuing guidance that was not sufficiently vetted
Which of the following reflects the correct chronological order of historical and
current standard setters?
a. The SEC was first granted authority, then the Committee on Accounting
Procedure (CAP), then the Accounting Principles Board (APB), and now the
Financial Accounting Standards Board (FASB)
b. APB then the SEC, then the CAP, and now FASB
c. SEC, then APB, then the CAP, and now FASB
d. CAP was first granted authority, then the SEC, then the APB, and now FASB
Answer - The SEC was first granted authority, then the Committee on
Accounting Procedure (CAP), then the Accounting Principles Board (APB), and
now the Financial Accounting Standards Board (FASB)
Ideally, companies with sufficient resources will perform accounting research
for a transaction at which time?
a. After financial statements are issued
b. All of the answers are correct
c. At the time when, or after, a transaction occurs
d. Before a transaction occurs Answer - Before a transaction occurs
, It may not always be possible to research the accounting for proposed
transactions. Research may be required at the time, or after, a transaction is
executed if
a. Communication broke down between the accounting team and the
operations team in the organization, and the accounting team was not made
aware of the proposed transaction
b. The transaction was time-sensitive, and there was not sufficient lead time to
research the account
c. The transaction or event could not have been anticipated, such as issues
arising from a fire or natural disaster
d. The preparer has limited resources and therefore only performs research for
final transactions
e. All of the answers are correct Answer - All of the answers are correct
Which of the following is NOT a benefit of researching a proposed transaction?
a. It allows investors to research a company's choice of accounting methods
before the transaction is finalized
b. The accounting team can prepare timely documentation of the expected
accounting position
100% CORRECT, SCORE A+
An accountant in this role may perform accounting research in order to
understand accounting positions of the companies or industries his/her agency
oversees, and these individuals may send comment letters to the extent they
question a given position.
a. Regulator
b. Investor
c. Auditor
d. Corporate accountant Answer - Regulator
As a result of the Private Company Council's work,
a. Anytime a new ASU is issued, private companies will be granted one
additional year to apply the guidance.
b. Accounting alternatives are now available to private companies within the
codification
c. It is not optional for private companies to apply the FASB codification
,d. Private company auditors must follow certain standards issued by the PCAOB
Answer - Accounting alternatives are now available to private companies
within the codification
Why was the private company council created to advise the FASB? That is, what
is the concern this body was created to address?
a. The concern that GAAP is currently too complex and too costly for private
companies to apply
b. The concern that audit standards for private companies are beginning to
diverge from audit standards for public companies due to new PCAOB
issuances
c. The concern that private companies should be able to follow the same
standards as governmental entities
d. The concern that GAAP for private companies is not adequately converged
with IFRS for private companies Answer - The concern that GAAP is currently
too complex and too costly for private companies to apply
Which of the following was not a criticism of the early standard-setting boards,
the CAP and APB?
a. The boards moved too quickly, issuing guidance that was not sufficiently
vetted
b. The boards lacked independence, because the members served in only part-
time capacity
,c. The boards did not have a common conceptual framework serving as a
foundation for their decisions
d. The boards did not respond to emerging issues in a timely manner Answer -
The boards moved too quickly, issuing guidance that was not sufficiently vetted
Which of the following reflects the correct chronological order of historical and
current standard setters?
a. The SEC was first granted authority, then the Committee on Accounting
Procedure (CAP), then the Accounting Principles Board (APB), and now the
Financial Accounting Standards Board (FASB)
b. APB then the SEC, then the CAP, and now FASB
c. SEC, then APB, then the CAP, and now FASB
d. CAP was first granted authority, then the SEC, then the APB, and now FASB
Answer - The SEC was first granted authority, then the Committee on
Accounting Procedure (CAP), then the Accounting Principles Board (APB), and
now the Financial Accounting Standards Board (FASB)
Ideally, companies with sufficient resources will perform accounting research
for a transaction at which time?
a. After financial statements are issued
b. All of the answers are correct
c. At the time when, or after, a transaction occurs
d. Before a transaction occurs Answer - Before a transaction occurs
, It may not always be possible to research the accounting for proposed
transactions. Research may be required at the time, or after, a transaction is
executed if
a. Communication broke down between the accounting team and the
operations team in the organization, and the accounting team was not made
aware of the proposed transaction
b. The transaction was time-sensitive, and there was not sufficient lead time to
research the account
c. The transaction or event could not have been anticipated, such as issues
arising from a fire or natural disaster
d. The preparer has limited resources and therefore only performs research for
final transactions
e. All of the answers are correct Answer - All of the answers are correct
Which of the following is NOT a benefit of researching a proposed transaction?
a. It allows investors to research a company's choice of accounting methods
before the transaction is finalized
b. The accounting team can prepare timely documentation of the expected
accounting position
