1
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Accounting 3300 Chapter 2 M/C
Questions and Answers (100% Correct
Answers) Already Graded A+
Generally accepted accounting principles
a.) are fundamental truths or axioms that can be derived from
laws of nature.
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b.) derive their authority from legal court proceedings.
c.) derive their credibility and authority from general recognition
and acceptance by the accounting profession.
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d.) have been specified in detail in the FASB conceptual
framework. [ANS:] C
A soundly developed conceptual framework of concepts and
objectives should
a.) increase financial statement users' understanding of and
confidence in financial reporting.
b.) enhance comparability among companies' financial
statements.
c.) allow new and emerging practical problems to be more
quickly solved.
d.) All of these answer choices are correct. [ANS:] D
Which of the following is not true concerning a conceptual
framework in accounting?
, 2
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a.) It should be a basis for standard-setting.
b.) It should allow practical problems to be solved more quickly by
reference to it.
c.) It should be based on fundamental truths that are derived from
the laws of nature.
d.) All of these answer choices are true. [ANS:] C
What is a purpose of having a conceptual framework?
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a.) To enable the profession to more quickly solve emerging
practical problems.
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b.) To provide a foundation from which to build more useful
standards.
c.) Neither a nor b.
d.) To enable the profession to more quickly solve emerging
practical problems and to provide a foundation from which to
build more useful standards. [ANS:] D
Which of the following is not a benefit associated with the FASB
Conceptual Framework Project?
a.) A conceptual framework should increase financial statement
users' understanding of and confidence in financial reporting.
b.) Practical problems should be more quickly solvable by
reference to an existing conceptual framework.
c.) A coherent set of accounting standards and rules should result.
, 3
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d.) Business entities will need far less assistance from accountants
because the financial reporting process will be quite easy to
apply. [ANS:] D
In the conceptual framework for financial reporting, what provides
"the why"--the purpose of accounting?
a.) Recognition, measurement, and disclosure concepts such as
assumptions, principles, and constraints
b.) Qualitative characteristics of accounting information
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c.) Elements of financial statements
d.) Objective of financial reporting [ANS:] D
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The underlying theme of the conceptual framework is
a.) decision usefulness.
b.) understandability.
c.) faithful representation.
d.) comparability. [ANS:] A
The objective of general-purpose financial reporting is to provide
financial information about a reporting entity to each of the
following except
a.) potential equity investors.
b.) potential lenders.
c.) present investors.
, 4
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d.) All of these answers are correct. [ANS:] D
What is the primary objective of financial reporting as indicated in
the conceptual framework?
a.) Provide information that is useful to those making investing and
credit decisions.
b.) Provide information that is useful to management.
c.) Provide information about those investing in the entity.
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d.) All of these answer choices are correct. [ANS:] A
If the LIFO inventory method was used last period, it should be
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used for the current and following periods because of
a.) comparability.
b.) materiality.
c.) timeliness.
d.) verifiability. [ANS:] A
What is the following is a characteristic describing the primary
quality of relevance?
a.) Predictive value.
b.) Materiality.
c.) Verifiability.
d.) Understandability. [ANS:] A
For Expert help and assignment solutions, +254707240657
Accounting 3300 Chapter 2 M/C
Questions and Answers (100% Correct
Answers) Already Graded A+
Generally accepted accounting principles
a.) are fundamental truths or axioms that can be derived from
laws of nature.
© 2025 Assignment Expert
b.) derive their authority from legal court proceedings.
c.) derive their credibility and authority from general recognition
and acceptance by the accounting profession.
Guru01 - Stuvia
d.) have been specified in detail in the FASB conceptual
framework. [ANS:] C
A soundly developed conceptual framework of concepts and
objectives should
a.) increase financial statement users' understanding of and
confidence in financial reporting.
b.) enhance comparability among companies' financial
statements.
c.) allow new and emerging practical problems to be more
quickly solved.
d.) All of these answer choices are correct. [ANS:] D
Which of the following is not true concerning a conceptual
framework in accounting?
, 2
For Expert help and assignment solutions, +254707240657
a.) It should be a basis for standard-setting.
b.) It should allow practical problems to be solved more quickly by
reference to it.
c.) It should be based on fundamental truths that are derived from
the laws of nature.
d.) All of these answer choices are true. [ANS:] C
What is a purpose of having a conceptual framework?
© 2025 Assignment Expert
a.) To enable the profession to more quickly solve emerging
practical problems.
Guru01 - Stuvia
b.) To provide a foundation from which to build more useful
standards.
c.) Neither a nor b.
d.) To enable the profession to more quickly solve emerging
practical problems and to provide a foundation from which to
build more useful standards. [ANS:] D
Which of the following is not a benefit associated with the FASB
Conceptual Framework Project?
a.) A conceptual framework should increase financial statement
users' understanding of and confidence in financial reporting.
b.) Practical problems should be more quickly solvable by
reference to an existing conceptual framework.
c.) A coherent set of accounting standards and rules should result.
, 3
For Expert help and assignment solutions, +254707240657
d.) Business entities will need far less assistance from accountants
because the financial reporting process will be quite easy to
apply. [ANS:] D
In the conceptual framework for financial reporting, what provides
"the why"--the purpose of accounting?
a.) Recognition, measurement, and disclosure concepts such as
assumptions, principles, and constraints
b.) Qualitative characteristics of accounting information
© 2025 Assignment Expert
c.) Elements of financial statements
d.) Objective of financial reporting [ANS:] D
Guru01 - Stuvia
The underlying theme of the conceptual framework is
a.) decision usefulness.
b.) understandability.
c.) faithful representation.
d.) comparability. [ANS:] A
The objective of general-purpose financial reporting is to provide
financial information about a reporting entity to each of the
following except
a.) potential equity investors.
b.) potential lenders.
c.) present investors.
, 4
For Expert help and assignment solutions, +254707240657
d.) All of these answers are correct. [ANS:] D
What is the primary objective of financial reporting as indicated in
the conceptual framework?
a.) Provide information that is useful to those making investing and
credit decisions.
b.) Provide information that is useful to management.
c.) Provide information about those investing in the entity.
© 2025 Assignment Expert
d.) All of these answer choices are correct. [ANS:] A
If the LIFO inventory method was used last period, it should be
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used for the current and following periods because of
a.) comparability.
b.) materiality.
c.) timeliness.
d.) verifiability. [ANS:] A
What is the following is a characteristic describing the primary
quality of relevance?
a.) Predictive value.
b.) Materiality.
c.) Verifiability.
d.) Understandability. [ANS:] A
