Test Bank for Intermediate Accounting: Reporting and Analysis 4th Edition by Wahlen
Chapter 1
True / False
1. A problem arising from equal information is called information asymmetry.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
2. The demand for relevant and reliable financial information stems from the needs of the internal and external
stakeholders.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
3. The mission of the Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient
markets, and assist in the formation of capital.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.2 - LO: 1.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
Page 1
,Chapter 1
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
4. The SEC uses its authority to establish accounting standards, while also enforcing regulations on companies,
exchanges, and investors.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.2 - LO: 1.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
5. The Financial Accounting Standards Board (FASB) began in 1973 after the AICPA phased out the Accounting
Principles Board (APB).
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.3 - LO: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
6. FASB’s Emerging Issues Task Force assists and advises the FASB by identifying and addressing timely but more
narrow and specific standard setting issues.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
Page 2
,Chapter 1
LEARNING OBJECTIVES: ACCT.WAHL.24.1.3 - LO: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
7. The Codification is set up as a system of levels starting with sections, topics, and subtopics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.4 - LO: 1.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
8. The Codification was established to assist in reducing the time necessary to research an accounting issue and improve
the ability to utilize accounting information that conforms with GAAP.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.4 - LO: 1.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
9. A potential issue facing the convergence project is that many companies have entered into contracts based upon U.S.
GAAP financial reporting; many of these contracts will have to be renegotiated using IFRS which potentially could cause
some companies more harm than good.
a. True
b. False
ANSWER: True
POINTS: 1
Page 3
, Chapter 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.5 - LO: 1.5
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
10. The balance sheet is a snapshot of a company’s financial position at a particular date.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.6 - LO: 1.6
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
11. The statement of shareholders' equity reports the effects from the recognition or valuation of certain asset or liability
transactions that change Accumulated Other Comprehensive Income.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.6 - LO: 1.6
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
12. “In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral
judgments in all their activities.” This is the Integrity Principle of the AICPA Code of Professional Conduct.
a. True
Page 4
Chapter 1
True / False
1. A problem arising from equal information is called information asymmetry.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
2. The demand for relevant and reliable financial information stems from the needs of the internal and external
stakeholders.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.1 - LO: 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
3. The mission of the Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient
markets, and assist in the formation of capital.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.2 - LO: 1.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
Page 1
,Chapter 1
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
4. The SEC uses its authority to establish accounting standards, while also enforcing regulations on companies,
exchanges, and investors.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.2 - LO: 1.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
5. The Financial Accounting Standards Board (FASB) began in 1973 after the AICPA phased out the Accounting
Principles Board (APB).
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.3 - LO: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
6. FASB’s Emerging Issues Task Force assists and advises the FASB by identifying and addressing timely but more
narrow and specific standard setting issues.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
Page 2
,Chapter 1
LEARNING OBJECTIVES: ACCT.WAHL.24.1.3 - LO: 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
7. The Codification is set up as a system of levels starting with sections, topics, and subtopics.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.4 - LO: 1.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
8. The Codification was established to assist in reducing the time necessary to research an accounting issue and improve
the ability to utilize accounting information that conforms with GAAP.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.4 - LO: 1.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
9. A potential issue facing the convergence project is that many companies have entered into contracts based upon U.S.
GAAP financial reporting; many of these contracts will have to be renegotiated using IFRS which potentially could cause
some companies more harm than good.
a. True
b. False
ANSWER: True
POINTS: 1
Page 3
, Chapter 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.5 - LO: 1.5
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
10. The balance sheet is a snapshot of a company’s financial position at a particular date.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.6 - LO: 1.6
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
11. The statement of shareholders' equity reports the effects from the recognition or valuation of certain asset or liability
transactions that change Accumulated Other Comprehensive Income.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: ACCT.WAHL.24.1.6 - LO: 1.6
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking - BUSPROG: FN: Reflective Thinking
LOCAL STANDARDS: United States - OH - Default City - AICPA: FN-Decision Modeling
KEYWORDS: Bloom's: Remember
DATE CREATED: 8/27/2018 10:46 AM
DATE MODIFIED: 4/14/2023 11:31 AM
12. “In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral
judgments in all their activities.” This is the Integrity Principle of the AICPA Code of Professional Conduct.
a. True
Page 4
