CA 1-3 (Financial Reporting and Accounting Standards)
Answer the following multiple-choice questions.
1. GAAP stands for:
(d) generally accepted accounting principles.
2. Accounting standard-setters use the following process in establishing accounting standards:
(d) Research, discussion paper, exposure draft, standard.
3. GAAP is comprised of:
(c) FASB standards, interpretations, EITF consensuses, and accounting rules issued by FASB
predecessor
organizations.
4. The authoritative status of the conceptual framework is as follows.
(a) It is used when there is no standard or interpretation related to the reporting issues under
consideration.
5. The objective of financial reporting places most emphasis on:
(a) reporting to capital providers.
6. General-purpose financial statements are prepared primarily for:
(b) external users.
7. Economic consequences of accounting standard-setting means:
(d) accounting standards can have detrimental impacts on the wealth levels of the providers of
financial information.
8. The expectations gap is:
(b) what the public thinks accountants should do and what accountants think they can do.
CA1-4 (Financial Accounting) Omar Morena has recently completed his first year of studying
accounting.
His instructor for next semester has indicated that the primary focus will be the area of financial
accounting
(a) Differentiate between financial accounting and managerial accounting.
Managerial accounting is the process of identifying and analyzing information needed by
management in order to evaluate the company’s operations, while financial accounting is
preparing financial reports for both internal and external parties.
(b) One part of financial accounting involves the preparation of financial statements. What are the
Financial statements most frequently provided?
Answer the following multiple-choice questions.
1. GAAP stands for:
(d) generally accepted accounting principles.
2. Accounting standard-setters use the following process in establishing accounting standards:
(d) Research, discussion paper, exposure draft, standard.
3. GAAP is comprised of:
(c) FASB standards, interpretations, EITF consensuses, and accounting rules issued by FASB
predecessor
organizations.
4. The authoritative status of the conceptual framework is as follows.
(a) It is used when there is no standard or interpretation related to the reporting issues under
consideration.
5. The objective of financial reporting places most emphasis on:
(a) reporting to capital providers.
6. General-purpose financial statements are prepared primarily for:
(b) external users.
7. Economic consequences of accounting standard-setting means:
(d) accounting standards can have detrimental impacts on the wealth levels of the providers of
financial information.
8. The expectations gap is:
(b) what the public thinks accountants should do and what accountants think they can do.
CA1-4 (Financial Accounting) Omar Morena has recently completed his first year of studying
accounting.
His instructor for next semester has indicated that the primary focus will be the area of financial
accounting
(a) Differentiate between financial accounting and managerial accounting.
Managerial accounting is the process of identifying and analyzing information needed by
management in order to evaluate the company’s operations, while financial accounting is
preparing financial reports for both internal and external parties.
(b) One part of financial accounting involves the preparation of financial statements. What are the
Financial statements most frequently provided?
