ACCT315 FINAL exam review 2024
What did the Financial Accounting Standards Board Accountings Standards Codification
do? ** Answ** It did not create a new GAAP, it eliminated nonessential information,
and it simplified user access to all authoritative U.S generally accepted accounting
principles.
True or False: Politics play no role in establishing GAAP ** Answ** False
International Financial Reporting Standards (IFRS) are issued by the... ** Answ**
IASB (International Accounting Standards Board)
Which group selects members of the FASB? ** Answ** FAF (Financial Accounting
Foundation)
The organization that provides implementation guidance within the framework of the
Codification to reduce diversity in practice on a timely basis is the... ** Answ** EITF
(Emerging Issues Task Force)
What is not true of the FASB Codification? ** Answ** It did not create a new GAAP
The purpose of financial accounting is to provide information primarily for which of the
following groups? ** Answ** Investors and creditors
The FASB amends the Accounting Standards Codification through the issuance of...
** Answ** Accounting Standards Updates
Which of the following is the objective of financial reporting? To provide information...
** Answ** about the reporting entity that is useful to present and potential equity
investors, lenders, and other creditors
,What is the objective of financial reporting? ** Answ** To provide information about
the reporting entity that is useful to present and potential equity investors, lenders, and
other creditors
Companies that are listed on a stock exchange are required to submit their financial
statements to the... ** Answ** SEC
The Financial Accounting Foundation does what? ** Answ** It oversees the
operations of the FASB
The major distinction between the Financial Accounting Standards Board (FASB) and
its predecessor, the Accounting Principles Board (APB), is... ** Answ** all members
of the FASB are fully remunerated, serve full time, and are independent of any
companies or institutions
The Financial Accounting Standards Board employs a "due process" system which **
Answ** enables interested parties to express their views on issues under
consideration
The American Institute of Certified Public Accountants (AICPA) is involved in... **
Answ** providing professional education programs, developing and enforcing
professional ethics, and grading the CPA exam
The purpose of Statements of Financial Accounting Concepts is to... ** Answ** form
a conceptual framework for solving existing and emerging problems
What are the sources of pressure that may influence the accounting standard setting
process? ** Answ** Congress, Lobbyists, and CPA Firms
, True/False: Users of financial reports of a company use the information provided by
these reports to make their capital allocation decisions ** Answ** True
True/False: Investors are interested in financial reporting because it provides
information that is useful for making decisions ** Answ** True
True/False: Statements of Financial Accounting Concepts set forth fundamental
objectives and concepts that are used by the FASB in developing future standards of
financial accounting and reporting ** Answ** True
The most significant current source of generally accepted accounting principles is the...
** Answ** FASB
Which organizations have been responsible for setting U.S. accounting standards? **
Answ** The Committee on Accounting Procedure, the Financial Accounting Standards
Board, and the Accounting Principles Board
Companies that are listed on a stock exchange are required to submit their financial
statements to the ** Answ** SEC
The Financial Accounting Foundation oversees... ** Answ** the operations of the
FASB
What qualitive characteristic applies to the quality of information that assures users that
info represents the economic phenomena that it purports to represent? ** Answ**
Faithful Representation
What qualitive characteristic applies to the information about an economic phenomenon
that corrects past or present expectations based on previous evaluations? ** Answ**
Confirmatory Value
What did the Financial Accounting Standards Board Accountings Standards Codification
do? ** Answ** It did not create a new GAAP, it eliminated nonessential information,
and it simplified user access to all authoritative U.S generally accepted accounting
principles.
True or False: Politics play no role in establishing GAAP ** Answ** False
International Financial Reporting Standards (IFRS) are issued by the... ** Answ**
IASB (International Accounting Standards Board)
Which group selects members of the FASB? ** Answ** FAF (Financial Accounting
Foundation)
The organization that provides implementation guidance within the framework of the
Codification to reduce diversity in practice on a timely basis is the... ** Answ** EITF
(Emerging Issues Task Force)
What is not true of the FASB Codification? ** Answ** It did not create a new GAAP
The purpose of financial accounting is to provide information primarily for which of the
following groups? ** Answ** Investors and creditors
The FASB amends the Accounting Standards Codification through the issuance of...
** Answ** Accounting Standards Updates
Which of the following is the objective of financial reporting? To provide information...
** Answ** about the reporting entity that is useful to present and potential equity
investors, lenders, and other creditors
,What is the objective of financial reporting? ** Answ** To provide information about
the reporting entity that is useful to present and potential equity investors, lenders, and
other creditors
Companies that are listed on a stock exchange are required to submit their financial
statements to the... ** Answ** SEC
The Financial Accounting Foundation does what? ** Answ** It oversees the
operations of the FASB
The major distinction between the Financial Accounting Standards Board (FASB) and
its predecessor, the Accounting Principles Board (APB), is... ** Answ** all members
of the FASB are fully remunerated, serve full time, and are independent of any
companies or institutions
The Financial Accounting Standards Board employs a "due process" system which **
Answ** enables interested parties to express their views on issues under
consideration
The American Institute of Certified Public Accountants (AICPA) is involved in... **
Answ** providing professional education programs, developing and enforcing
professional ethics, and grading the CPA exam
The purpose of Statements of Financial Accounting Concepts is to... ** Answ** form
a conceptual framework for solving existing and emerging problems
What are the sources of pressure that may influence the accounting standard setting
process? ** Answ** Congress, Lobbyists, and CPA Firms
, True/False: Users of financial reports of a company use the information provided by
these reports to make their capital allocation decisions ** Answ** True
True/False: Investors are interested in financial reporting because it provides
information that is useful for making decisions ** Answ** True
True/False: Statements of Financial Accounting Concepts set forth fundamental
objectives and concepts that are used by the FASB in developing future standards of
financial accounting and reporting ** Answ** True
The most significant current source of generally accepted accounting principles is the...
** Answ** FASB
Which organizations have been responsible for setting U.S. accounting standards? **
Answ** The Committee on Accounting Procedure, the Financial Accounting Standards
Board, and the Accounting Principles Board
Companies that are listed on a stock exchange are required to submit their financial
statements to the ** Answ** SEC
The Financial Accounting Foundation oversees... ** Answ** the operations of the
FASB
What qualitive characteristic applies to the quality of information that assures users that
info represents the economic phenomena that it purports to represent? ** Answ**
Faithful Representation
What qualitive characteristic applies to the information about an economic phenomenon
that corrects past or present expectations based on previous evaluations? ** Answ**
Confirmatory Value
