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
,ACCT 5305 QUIZ QUESTIONS AND ANSWERS (VERIFIED) 100% CORRECT, SCORE A+
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)
,ACCT 5305 QUIZ QUESTIONS AND ANSWERS (VERIFIED) 100% CORRECT, SCORE A+
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
, ACCT 5305 QUIZ QUESTIONS AND ANSWERS (VERIFIED) 100% CORRECT, SCORE A+
c. Researching a proposed transaction allows management to evaluate whether the expected financial
statements impacts of the transaction are acceptable
d. The audit team can review the proposed accounting position before the transaction is recorded
e. Management can use this information to adjust forecasted earnings to reflect the expected impacts of
the transaction - (ANSWER)It allows investors to research a company's choice of accounting methods
before the transaction is finalized
As discussed in the chapter, the SEC periodically writes comment letters
a. To governmental agencies, requesting additional explanation of an agency's financial reporting
b. To public companies, requesting additional explanation of a company's financial reporting
c. To the FASB, to formally document the positions of its appointed observer attending FASB meetings
d. To registered public accounting firms, describing concerns observed during its inspections of public
company audits - (ANSWER)To public companies, requesting additional explanation of a company's
financial reporting
Within which of the following environments is accounting research performed?
a. International companies
b. U.S. public companies
c. Governmental entities
d. U.S. private companies
e. All answers are correct - (ANSWER)All answers are correct
The FASB is funded primarily by which of the following?
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
,ACCT 5305 QUIZ QUESTIONS AND ANSWERS (VERIFIED) 100% CORRECT, SCORE A+
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)
,ACCT 5305 QUIZ QUESTIONS AND ANSWERS (VERIFIED) 100% CORRECT, SCORE A+
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
, ACCT 5305 QUIZ QUESTIONS AND ANSWERS (VERIFIED) 100% CORRECT, SCORE A+
c. Researching a proposed transaction allows management to evaluate whether the expected financial
statements impacts of the transaction are acceptable
d. The audit team can review the proposed accounting position before the transaction is recorded
e. Management can use this information to adjust forecasted earnings to reflect the expected impacts of
the transaction - (ANSWER)It allows investors to research a company's choice of accounting methods
before the transaction is finalized
As discussed in the chapter, the SEC periodically writes comment letters
a. To governmental agencies, requesting additional explanation of an agency's financial reporting
b. To public companies, requesting additional explanation of a company's financial reporting
c. To the FASB, to formally document the positions of its appointed observer attending FASB meetings
d. To registered public accounting firms, describing concerns observed during its inspections of public
company audits - (ANSWER)To public companies, requesting additional explanation of a company's
financial reporting
Within which of the following environments is accounting research performed?
a. International companies
b. U.S. public companies
c. Governmental entities
d. U.S. private companies
e. All answers are correct - (ANSWER)All answers are correct
The FASB is funded primarily by which of the following?
