TEST BANK - Intermediate Accounting, 3rd Edition by Elizabeth A. Gordon, Jana S. Raedy, All Chapters 1 - 22, Complete Newest Version

Test,Bank,for,Intermediate,Accounting,,3rd,Edition,by,Elizabeth,A.,Gordon



Intermediate,Accounting,,3e,(Gordon/Raedy/Sannella)
All,Chapters ✅
Chapter,1 The,Financial,Reporting,Environment

1.1 Overview,of,Financial,Reporting

1) The,financial,reporting,process,generates,three,basic,financial,statements.,A
nswer:, FALSE
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

2) The,demand,for,financial,information,is,based,on,market,participant,demand.,A
nswer:, TRUE
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

3) Managers,of,economic,entities,are,best,considered,to,be,users,of,financial,information.,A
nswer:, FALSE
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

4) Managers,of,economic,entities,are,best,considered,to,be,preparers,of,financial,information.,A
nswer:, TRUE
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

5) The,Securities,and,Exchange,Commission,(SEC),regulates,financial,reporting,for,publicly,traded,co
mpanies.
Answer:, TRUE
Diff:,2
Objective:,1.1,IFRS/GAA
P:, GAAP
AACSB:, Application,of,knowledge

6) The,FASB,gives,the,SEC,authority,to,regulate,accounting,for,publicly,traded,companies.,A
nswer:, FALSE
Diff:,1
Objective:,1.1,IFRS/GAA
P:, GAAP
AACSB:, Application,of,knowledge




1

,7) The,Public,Company,Accounting,Oversight,Board,(PCAOB),sets,financial,accounting,standards,and,ov
ersees,the,audits,of,public,companies,in,the,United,States.
Answer:, FALSE
Diff:,1
Objective:,1.1,IFRS/GAA
P:, GAAP
AACSB:, Application,of,knowledge

8) Financial,accounting,standards,influence,the,behavior,of,managers,and,other,internal,users.,A
nswer:, TRUE
Diff:,2
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

9) Theories,and,procedures,that,evolve,as,a,result,of,lobbying,from,various,groups,are,examples,of,pr
oactive,factors,within,the,legal,,economic,,political,,and,social,environment.
Answer:, FALSE
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

10) Financial,information,includes,information,that,is,not,governed,by,rules,set,forth,by,the,accounting,sta
ndard-setting,bodies.
Answer:, TRUE
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

11) What,is,the,term,that,describes,the,process,of,identifying,,measuring,,and,communicating,financial,inf
ormation,about,an,economic,entity,to,various,user,groups?
A) financial,reporting
B) accounting,standard,setting
C) financial,statement
D) financial,accounting,
Answer:, D
Diff:,2
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge




2

,12) Which,element,of,financial,accounting,involves,identifying,the,individuals,who,demand,financial,in
formation?
A) financial,information
B) economic,entity
C) user,groups
D) legal,,economic,,political,,and,social,environment,
Answer:, C
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

13) Which,of,the,following,is,not,one,of,the,four,basic,financial,statements?
A) balance,sheet
B) trial,balance
C) cash,flows,statement
D) statement,of,comprehensive,income,
Answer:, B
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

14) Which,organization,is,responsible,for,promulgating,U.S.,GAAP?
A) Financial,Accounting,Standards,Board
B) Public,Company,Accounting,Oversight,Board
C) International,Accounting,Standards,Board
D) Securities,and,Exchange,Commission,
Answer:, A
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

15) Which,organization,is,responsible,for,setting,auditing,standards,and,overseeing,the,audits,of,public,co
mpanies,in,the,United,States?
A) Financial,Accounting,Standards,Board
B) Public,Company,Accounting,Oversight,Board
C) American,Institute,of,Certified,Public,Accountants
D) Securities,and,Exchange,Commission,
Answer:, B
Diff:,1
Objective:,1.1,IFRS/GAA
P:, GAAP
AACSB:, Application,of,knowledge




3

, 16) Which,organization,prepares,and,grades,the,Uniform,CPA,Examination?
A) Financial,Accounting,Standards,Board
B) Public,Company,Accounting,Oversight,Board
C) American,Institute,of,Certified,Public,Accountants
D) International,Accounting,Standards,Board,
Answer:, C
Diff:,1
Objective:,1.1,IFRS/GAA
P:, GAAP
AACSB:, Application,of,knowledge

17) Which,of,the,following,user,groups,consists,of,individuals,that,provide,guidance,to,others,in,ma
king,investment,and,credit,decisions?
A) financial,analysts
B) equity,investors
C) creditors
D) suppliers,
Answer:,A,Di
ff:,2,Objective:,
1.1
IFRS/GAAP:, GAAP/IFRS
AACSB:, Application,of,knowledge

18) Which,of,the,following,user,groups,consists,of,individuals,who,expect,to,receive,a,return,on,their,inv
estment?
A) employees
B) equity,investors
C) creditors
D) suppliers,and,customers,
Answer:, B
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge

19) Which,of,the,following,user,groups,consist,of,companies,that,analyze,financial,information,to,identify,the
,reporting,entity's,objectives,,assumptions,,overall,business,strategy,,and,capabilities?

A) competitors
B) creditors,and,other,debt,investors
C) employees,and,labor,unions
D) suppliers,and,customers,
Answer:, A
Diff:,1
Objective:,,,1.1,IFRS/GAAP
:, GAAP/IFRS
AACSB:, Application,of,knowledge




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