ETH 557 - Accounting Ethics Final exam
1. In 2003, FASB and IASB met and established four criteria for establishing revenue
recognition. To recognize revenue, which of the following conditions must be present?
A change in assets has occurred and can be appropriately measured.
Payment for the sale must be received prior to recognizing the revenue.
The product or deliverable, in the case of a service business, has been received by the customer.
A promise to deliver has been established.
2. Failure to provide any care in fulfilling a duty owed to another is called
gross negligence
constructive fraud
breach of contract
negligence
3. Which of the following is a fundamental characteristic of the market system?
Unselfish behavior
Central planning by government
Government-set wages and prices
Property rights
4. The income effect indicates that
consumers should substitute among various products until the marginal utility from the last unit
of each product purchased is the same
a rise in money income will cause consumers to buy smaller quantities of normal goods
1. In 2003, FASB and IASB met and established four criteria for establishing revenue
recognition. To recognize revenue, which of the following conditions must be present?
A change in assets has occurred and can be appropriately measured.
Payment for the sale must be received prior to recognizing the revenue.
The product or deliverable, in the case of a service business, has been received by the customer.
A promise to deliver has been established.
2. Failure to provide any care in fulfilling a duty owed to another is called
gross negligence
constructive fraud
breach of contract
negligence
3. Which of the following is a fundamental characteristic of the market system?
Unselfish behavior
Central planning by government
Government-set wages and prices
Property rights
4. The income effect indicates that
consumers should substitute among various products until the marginal utility from the last unit
of each product purchased is the same
a rise in money income will cause consumers to buy smaller quantities of normal goods
