ACCTG 5110 ( with verified solutions and graded A+) 2023 questions and answers

What is the downside of using accrual accounting versus cash-basis accounting discussed in the lecture? -Accrual accounting provides poorer information about past performance. -Accrual accounting is less predictive in terms of future performance than cash-basis accounting. -Accrual accounting is more subjective than cash-basis accounting, which may lead to manipulation. -Accrual accounting and cash-basis accounting report the same values over the life of the firm. - ANSAccrual accounting is more subjective that cash-basis accounting, which may lead to manipulation. Which is considered more important by the FASB, fundamental qualitative characteristics of financial information or enhancing characteristics of financial information? - ANSFundamental qualitative characteristics What term DID the FASB use in its conceptual framework instead of "faithful representation"? - ANSReliability What is "information asymmetry"? - ANSA fancy way of saying one party has more information than the other. An example is when the firm has better or more relevant information about its profitability than investors, its lenders or employees. Standards evolve across time. The FASB's focus has shifted from getting the ___________________ right to getting the _____________ right in its more current standard. - ANSIncome Statement / Balance Sheet Which of the following is not an objective of financial reporting? -To help portray the company's resources and obligations. -To get users to ignore cash-basis accounting. -To provide information to assist users in predicting future cash flows. -To provide information that is useful in making decisions. - ANSTo get users to ignore cash basis accounting. Match the accounting term with the definition. 1. Recognition 2. Measurement 3. Presentation 4. Disclosure - ANS1. Should a numerical value be in 2. Assigning numerical values to 3. Placement within the financial statements 4. Including footnotes to financial statements Two sets of accounting standards discussed this semester: - ANSUS GAAP and IFRS