GAAP INTERMEDIATE ACCOUNTING.
QUESTIONS AND ANSWERS. EXAM PREP
2024
1. The Securities and Exchange Commission organization
primarily represents that participate in the process of
establishing GAAP.: Users
2. The Financial Executives International organization primarily
represents that participate in the process of establishing
GAAP.: Preparers
3. The American Institute of Certified Public Accountants
primarily represents that participate in the process of
establishing GAAP.: Auditors
4. The Institute of Management Accountants organization
primarily represents that participate in the process of
establishing GAAP.: Preparers
5. The Association of Investment Management and Research
organization primarily represents that participate in the
process of establishing GAAP.: Users
6. Obligation to transfer cash or other resources as a result of a
past transaction: Liability
7. Dividends paid by a corporation to its shareholders; decreases
in equity resulting from transfers to owners: Distribution to
owners
8. Inflow of an asset from providing a good or service:
Revenue
9. The financial position of a company: Assets, Liabilities and Equity
10. Increase in equity during a period from non-owner
transactions; change in equity: Comprehensive Income
1 1. Increase in equity from peripheral or incidental transaction;
results if an asset is sold for more than its book value: Gain
, GAAP INTERMEDIATE ACCOUNTING.
QUESTIONS AND ANSWERS. EXAM PREP
2024
12. Sale of an asset used in the operations of a business for
less than the asset's book value: Loss
13. The owners' residual interest in the assets of a company:
Equity
14. An item owned by the company representing probable future
benefits: Asset
15. Revenues plus gains less expenses and losses: Net Income
16. An owners' contribution of cash to a corporation in exchange
for ownership shares of stock: Investment by Owners
17. Outflow of an asset related to the production of revenue:
Expense
18. Predictive Value: Information is useful in predicting the future
19. Relevance: Pertinent to the decision at hand
20. Timeliness: Information is available prior to the decision
21. Confirmatory Value: Information confirms expectations
22. Understandability: Users understand the information in the context
of the decision being made
23. Faithful Representation: Agreement between a measure and the
phenomenon it purports to represent
24. Materiality: Concerns the relative size of an item and its effects
on decisions
25. Comparability: Important for making inter-firm comparisons
26. Neutrality: The absence of bias
27. Recognition: The process of admitting information into financial
statements
QUESTIONS AND ANSWERS. EXAM PREP
2024
1. The Securities and Exchange Commission organization
primarily represents that participate in the process of
establishing GAAP.: Users
2. The Financial Executives International organization primarily
represents that participate in the process of establishing
GAAP.: Preparers
3. The American Institute of Certified Public Accountants
primarily represents that participate in the process of
establishing GAAP.: Auditors
4. The Institute of Management Accountants organization
primarily represents that participate in the process of
establishing GAAP.: Preparers
5. The Association of Investment Management and Research
organization primarily represents that participate in the
process of establishing GAAP.: Users
6. Obligation to transfer cash or other resources as a result of a
past transaction: Liability
7. Dividends paid by a corporation to its shareholders; decreases
in equity resulting from transfers to owners: Distribution to
owners
8. Inflow of an asset from providing a good or service:
Revenue
9. The financial position of a company: Assets, Liabilities and Equity
10. Increase in equity during a period from non-owner
transactions; change in equity: Comprehensive Income
1 1. Increase in equity from peripheral or incidental transaction;
results if an asset is sold for more than its book value: Gain
, GAAP INTERMEDIATE ACCOUNTING.
QUESTIONS AND ANSWERS. EXAM PREP
2024
12. Sale of an asset used in the operations of a business for
less than the asset's book value: Loss
13. The owners' residual interest in the assets of a company:
Equity
14. An item owned by the company representing probable future
benefits: Asset
15. Revenues plus gains less expenses and losses: Net Income
16. An owners' contribution of cash to a corporation in exchange
for ownership shares of stock: Investment by Owners
17. Outflow of an asset related to the production of revenue:
Expense
18. Predictive Value: Information is useful in predicting the future
19. Relevance: Pertinent to the decision at hand
20. Timeliness: Information is available prior to the decision
21. Confirmatory Value: Information confirms expectations
22. Understandability: Users understand the information in the context
of the decision being made
23. Faithful Representation: Agreement between a measure and the
phenomenon it purports to represent
24. Materiality: Concerns the relative size of an item and its effects
on decisions
25. Comparability: Important for making inter-firm comparisons
26. Neutrality: The absence of bias
27. Recognition: The process of admitting information into financial
statements
