INTERMEDIATE ACCOUNTING 1 QUESTIONS AND
ANSWERS FOR REVISION. A+ GRADE ANSWERS
PROVIDED
1. Most Financial information in general purpose financial statements is
provided to. General purpose financial statements provide information to
.: satisfy users with limited ability or authority to obtain additional information;
investors, creditors, financial analysts, insurance companies, unions, and
government agencies.
2. What is the definition of financial accounting? Financial accounting is the
process of identifying, measuring, and communicating financial information
about an economic entity to carious users groups within the legal. Economic,
political, and social environment.
3. Are banks and other financial institutions that led money to the
company.: Creditors
4. Use financial statements to determine whether to conduct business or
purchase products from a company.: Suppliers and Customers
5. Use financial information to determine their market position relative
to the reporting entity and to attempt to identify future strategies of the
reporting entity.: Competitors
6. Are independent of the company and responsible for ensuring that
management prepares and issues financial statements that comply with
accounting standards and fairly present the financial statements that
comply with accounting standards and fairly present the financial position
and economic performance of the company.: External Auditors
7. Use financial information to review and analyze reported results of the
companies they cover and make investment recommendations.: Financial
Analysts 8. Are employees of the company serving in an advisory role to
management. They provide information to management regarding the
company's operations and proper functioning of its internal controls.:
Internal Auditors
9. Review the financial statements of publicly traded companies for a
variety of reason that are in the public interest.: Government Agencies
,10. Use financial information during negotiation of new labor agreements
and compensation contracts.: Employees and Labor Unions
1 1. Support accounting professionals throughout their careers by
providing training, professional skills development, and other resources.:
Professional Organizations
12. Are shareholders of the company.: Equity Investors
13. Protect investors and oversee the accounting and auditing standard
setting processes.: Regulatory Bodies
14. Financial statement user: Suppliers and customers: They can use the financial
statements to determine a company's financial position and whether they want
to do business with the company.
15. Financial statement user: Employees and labor unions: They use the financial
statements to assess the company's performance, which is important
information in wage negotiations.
16. Financial statement user: creditors: They loan money to the company. The
financial statements help them assess the credit-worthiness of the company
17. Financial statement user: Equity investors: They buy stock in the
company, that is, they purchase a percentage of the company itself. The
financial statements help them make investment decisions.
18. Parties in the financial reporting process: Auditors: It is their job to ensure that
the management of the company has prepared financial statements that follow the
accounting rules and fairly present the position and performance of the company
19. Parties in the financial reporting process: Accounting standard setters: They
create accounting concepts, rules, and guidelines that will result in financial
statements that provide financial information that is relevant and that faithfully
represent the financial performance and position of the reporting entity
20. Parties in the financial reporting process: Regulatory bodies: They oversee
the accounting standard setting process, including giving the FASB the authority
to determine U.S. GAAP.
21. An economic entity is an organization or unit with activities that are
those of its owners and other entities. Financial information relates to a
, particular economic entity. Economic entities corporations, partnerships,
sole proprietorships, or governmental organizations. Also, economic
entities : separate from; always; can be; may be privately help or publicly
held.
22. The FASB follows a seven-step process to issue a final standard. Place
the steps listed in the proper order.: Step 1. The FASB identifies a financial
reporting issue.
Step 2. The FASB chairperson decides whether to add the issue to the technical
agenda.
Step 3. The FASB holds public meetings to deliberate various issues
identified. Step 4. The Board issues and Exposure Draft
Step 5. The Board may hold public round tables to discuss the Exposure Draft
Step 6. The Board analyzes comments and re deliberates the issue.
Step 7. The Board issues an Accounting Standards Update.
23. Order the steps in f the Financial Accounting Standards Board's standard-
setting process from 1 to 7.: 1. A financial reporting issue is identified either by
requests of financial statement users or by some other means.
2. After consultation with FASB members and others as appropriate, the FASB
Chairperson decides whether to add the issue to the technical agenda.
3. The Board holds public meetings where it deliberates the various issues
identified by the FASB staff.
4. The Board issues an Exposure Draft (ED), which is intended to solicit
input.
5. The Board may hold public roundtables to discuss the ED, if needed.
6. The FASB staff analyzes the comment letters received, public roundtable
discussions, and any other information. The Board then redeliberates the issue. 7.
The Board issues an Accounting Standards Update (ASU), which is the final
standard. It then incorporates the ASU in to the Accounting Standards Codification
that makes up U.S. GAAP.
ANSWERS FOR REVISION. A+ GRADE ANSWERS
PROVIDED
1. Most Financial information in general purpose financial statements is
provided to. General purpose financial statements provide information to
.: satisfy users with limited ability or authority to obtain additional information;
investors, creditors, financial analysts, insurance companies, unions, and
government agencies.
2. What is the definition of financial accounting? Financial accounting is the
process of identifying, measuring, and communicating financial information
about an economic entity to carious users groups within the legal. Economic,
political, and social environment.
3. Are banks and other financial institutions that led money to the
company.: Creditors
4. Use financial statements to determine whether to conduct business or
purchase products from a company.: Suppliers and Customers
5. Use financial information to determine their market position relative
to the reporting entity and to attempt to identify future strategies of the
reporting entity.: Competitors
6. Are independent of the company and responsible for ensuring that
management prepares and issues financial statements that comply with
accounting standards and fairly present the financial statements that
comply with accounting standards and fairly present the financial position
and economic performance of the company.: External Auditors
7. Use financial information to review and analyze reported results of the
companies they cover and make investment recommendations.: Financial
Analysts 8. Are employees of the company serving in an advisory role to
management. They provide information to management regarding the
company's operations and proper functioning of its internal controls.:
Internal Auditors
9. Review the financial statements of publicly traded companies for a
variety of reason that are in the public interest.: Government Agencies
,10. Use financial information during negotiation of new labor agreements
and compensation contracts.: Employees and Labor Unions
1 1. Support accounting professionals throughout their careers by
providing training, professional skills development, and other resources.:
Professional Organizations
12. Are shareholders of the company.: Equity Investors
13. Protect investors and oversee the accounting and auditing standard
setting processes.: Regulatory Bodies
14. Financial statement user: Suppliers and customers: They can use the financial
statements to determine a company's financial position and whether they want
to do business with the company.
15. Financial statement user: Employees and labor unions: They use the financial
statements to assess the company's performance, which is important
information in wage negotiations.
16. Financial statement user: creditors: They loan money to the company. The
financial statements help them assess the credit-worthiness of the company
17. Financial statement user: Equity investors: They buy stock in the
company, that is, they purchase a percentage of the company itself. The
financial statements help them make investment decisions.
18. Parties in the financial reporting process: Auditors: It is their job to ensure that
the management of the company has prepared financial statements that follow the
accounting rules and fairly present the position and performance of the company
19. Parties in the financial reporting process: Accounting standard setters: They
create accounting concepts, rules, and guidelines that will result in financial
statements that provide financial information that is relevant and that faithfully
represent the financial performance and position of the reporting entity
20. Parties in the financial reporting process: Regulatory bodies: They oversee
the accounting standard setting process, including giving the FASB the authority
to determine U.S. GAAP.
21. An economic entity is an organization or unit with activities that are
those of its owners and other entities. Financial information relates to a
, particular economic entity. Economic entities corporations, partnerships,
sole proprietorships, or governmental organizations. Also, economic
entities : separate from; always; can be; may be privately help or publicly
held.
22. The FASB follows a seven-step process to issue a final standard. Place
the steps listed in the proper order.: Step 1. The FASB identifies a financial
reporting issue.
Step 2. The FASB chairperson decides whether to add the issue to the technical
agenda.
Step 3. The FASB holds public meetings to deliberate various issues
identified. Step 4. The Board issues and Exposure Draft
Step 5. The Board may hold public round tables to discuss the Exposure Draft
Step 6. The Board analyzes comments and re deliberates the issue.
Step 7. The Board issues an Accounting Standards Update.
23. Order the steps in f the Financial Accounting Standards Board's standard-
setting process from 1 to 7.: 1. A financial reporting issue is identified either by
requests of financial statement users or by some other means.
2. After consultation with FASB members and others as appropriate, the FASB
Chairperson decides whether to add the issue to the technical agenda.
3. The Board holds public meetings where it deliberates the various issues
identified by the FASB staff.
4. The Board issues an Exposure Draft (ED), which is intended to solicit
input.
5. The Board may hold public roundtables to discuss the ED, if needed.
6. The FASB staff analyzes the comment letters received, public roundtable
discussions, and any other information. The Board then redeliberates the issue. 7.
The Board issues an Accounting Standards Update (ASU), which is the final
standard. It then incorporates the ASU in to the Accounting Standards Codification
that makes up U.S. GAAP.
