TEST BANK ll
Intermediate Accounting, 18th Edition
ll ll ll
by Kieso, Warfield Chapter 1 - 23 Complete
ll ll ll ll ll ll ll ll
,Table of Contents
ll ll
1 llThe llEnvironment lland llConceptual llFramework llof llFinancial llReporting
2 llThe llAccounting llInformation llSystem
3 llIncome llStatement, llRelated llInformation, lland llRevenue llRecognition
4 llBalance llSheet lland llStatement llof llCash llFlows
5 llAccounting lland llthe llTime llValue llof llMoney
6 llCash lland llReceivables
7 llValuation llof llInventories: llA llCost-Basis llApproach
8 llInventories: llAdditional llValuation llIssues
9 llAcquisition lland llDisposition llof llProperty, llPlant, lland llEquipment
10 llDepreciation, llImpairments, lland llDepletion
11 llIntangible llAssets
12 llCurrent llLiabilities lland llContingencies
13 llLong-Term llLiabilities
14 llStockholders’ llEquity
15 llDilutive llSecurities lland llEarnings llper llShare
16 llInvestments
17 llRevenue llRecognition
18 llAccounting llfor llIncome llTaxes
19 llAccounting llfor llPensions lland llPostretirement llBenefits
20 llAccounting llfor llLeases
21 llAccounting llChanges lland llError llAnalysis
22 llStatement llof llCash llFlows
23 llFull llDisclosure llin llFinancial llReporting ll
, CHAPTER 1 ll
THE ENVIRONMENT AND CONCEPTUAL FRAMEWORK OF
ll ll ll ll ll
FINANCIAL REPORTING ll ll
IFRS llquestions llare llavailable llat llthe llend llof llthis llchapter.
TRUE-FALSE—Conceptual
1. Financial llstatements llare llthe llprincipal llmeans llthrough llwhich lla llcompany llcommunicates llits
llfinancial llinformation llto llthose lloutside llit.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
2. Users l l of l l financial l l reports l l of l l a l l company l l use l l the l l information l l provided l l by l l these
l l reports l l to llmake llcapital llallocation lldecisions.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
3. An lleffective llprocess llof llcapital llallocation llprovides llan llefficient llmarket llfor llbuying lland llselling
llsecurities lland llobtaining lland llgranting llcredit.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
4. Investors llare llinterested llin llfinancial llreporting llbecause llit llprovides llinformation llthat llis lluseful llfor
llmaking lldecisions.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
5. Users l l of l l financial l l accounting l l statements ll have ll both ll coinciding ll and ll conflicting
l l needs l l for llinformation llof llvarious lltypes.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
6. Although llthe llFASB llhas lldeveloped lla llconceptual llframework, llno llStatements llof llFinancial
llAccounting llConcepts llhave llbeen llissued llto lldate.
Ans: llF, llLO: ll1, llBloom: llK, llDifficulty: llModerate, llMin: ll1, llAACSB: llKnowledge, llAICPA llBC: llNone, llAICPA llAC: llReporting, llAICPA llPC: llNone, llIMA: llReporting ll&
l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
7. The llpassage llof lla llnew llFASB llAccounting llStandards llUpdate llrequires llthe llsupport llof llfive llof ll the
llseven llboard llmembers.
Ans: l l F, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
8. Statements llof llFinancial llAccounting llConcepts llset llforth llfundamental llobjectives lland l l concepts
llthat llare llused llby llthe llFASB llin lldeveloping llfuture llstandards llof llfinancial llaccounting lland llreporting.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
9. The llFASB’s llCodification llcreates lla llnew llset llof llGAAP.
Ans: l l F, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
, 1 ll- ll2 Test llBank llfor llIntermediate llAccounting, llEighteenth
llEdition
10. The llobjective llof llfinancial llreporting llis llto llreport llthe llplans llmade llby lla llcompany llto llimprove llthe
llproductivity llof llits llemployees.
Ans: l l F, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
11. A l l soundly l l developed l l conceptual l l framework l l enables l l the l l FASB l l to l l issue l l more
l l useful l l and llconsistent llpronouncements llover lltime.
Ans: l l T, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
12. A llconceptual llframework llis lla llcoherent llsystem llof llconcepts llthat llflow llfrom llan llobjective.
Ans: l l T, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
13. The l l first l l level l l of l l the l l conceptual l l framework l l identifies l l the l l recognition,
l l measurement, l l and lldisclosure llconcepts llused llin llestablishing llaccounting llstandards.
Ans: l l F, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
14. The llobjective llof llfinancial llreporting llserves llas llthe llfoundation llof llthe llconceptual llframework.
Ans: l l T, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
15. Users llof llfinancial llstatements llare llassumed llto llneed llno llknowledge llof llbusiness lland llfinancial
llaccounting llmatters llto llunderstand llthe llinformation llcontained llin llfinancial ll statements.
Ans: l l F, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
16. Relevance l l and l l faithful l l representation l l are l l the l l two l l fundamental
l l qualities l l that l l make llaccounting llinformation lluseful llfor lldecision-making.
Ans: l l T, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
17. The llidea llof llconsistency lldoes llnot llmean llthat llcompanies llcannot llswitch llfrom llone llaccounting
llmethod llto llanother.
Ans: llT, llLO: ll2, llBloom: llC, llDifficulty: llModerate, llMin: ll1, llAACSB: llKnowledge, llAICPA llBC: llNone, llAICPA llAC: llReporting, llAICPA llPC: llNone, llIMA: llReporting ll&
l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
18. Timeliness lland llneutrality llare lltwo llingredients llof llrelevance.
Ans: l l F, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
19. Verifiability lland llpredictive llvalue llare lltwo llingredients llof llfaithful llrepresentation.
Ans: l l F, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
20. Revenues, llgains, lland lldistributions llto llowners llall llincrease llequity.
Ans: l l F, l l LO: l l 2, l l Bloom: l l C, l l Difficulty: l l Moderate, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Measurement l l Analysis l l and
l l Interpretation, ll AICPA llPC: llNone, llIMA: llReporting ll& llControl: llFinancial llStatement llAnalysis, llIFRS: llNone
21. Comprehensive l l income l l includes l l all l l changes l l in l l equity l l during l l a
l l period l l except l l those llresulting llfrom llinvestments llby llowners lland lldistributions llto llowners.
Ans: llT, llLO: ll2, llBloom: llK, llDifficulty: llEasy, llMin: ll1, llAACSB: llKnowledge, llAICPA llBC: llNone, llAICPA llAC: llMeasurement llAnalysis lland llInterpretation, llAICPA
l l PC: llNone, llIMA: llReporting ll& llControl: llFinancial llStatement llAnalysis, llIFRS: llNone
Intermediate Accounting, 18th Edition
ll ll ll
by Kieso, Warfield Chapter 1 - 23 Complete
ll ll ll ll ll ll ll ll
,Table of Contents
ll ll
1 llThe llEnvironment lland llConceptual llFramework llof llFinancial llReporting
2 llThe llAccounting llInformation llSystem
3 llIncome llStatement, llRelated llInformation, lland llRevenue llRecognition
4 llBalance llSheet lland llStatement llof llCash llFlows
5 llAccounting lland llthe llTime llValue llof llMoney
6 llCash lland llReceivables
7 llValuation llof llInventories: llA llCost-Basis llApproach
8 llInventories: llAdditional llValuation llIssues
9 llAcquisition lland llDisposition llof llProperty, llPlant, lland llEquipment
10 llDepreciation, llImpairments, lland llDepletion
11 llIntangible llAssets
12 llCurrent llLiabilities lland llContingencies
13 llLong-Term llLiabilities
14 llStockholders’ llEquity
15 llDilutive llSecurities lland llEarnings llper llShare
16 llInvestments
17 llRevenue llRecognition
18 llAccounting llfor llIncome llTaxes
19 llAccounting llfor llPensions lland llPostretirement llBenefits
20 llAccounting llfor llLeases
21 llAccounting llChanges lland llError llAnalysis
22 llStatement llof llCash llFlows
23 llFull llDisclosure llin llFinancial llReporting ll
, CHAPTER 1 ll
THE ENVIRONMENT AND CONCEPTUAL FRAMEWORK OF
ll ll ll ll ll
FINANCIAL REPORTING ll ll
IFRS llquestions llare llavailable llat llthe llend llof llthis llchapter.
TRUE-FALSE—Conceptual
1. Financial llstatements llare llthe llprincipal llmeans llthrough llwhich lla llcompany llcommunicates llits
llfinancial llinformation llto llthose lloutside llit.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
2. Users l l of l l financial l l reports l l of l l a l l company l l use l l the l l information l l provided l l by l l these
l l reports l l to llmake llcapital llallocation lldecisions.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
3. An lleffective llprocess llof llcapital llallocation llprovides llan llefficient llmarket llfor llbuying lland llselling
llsecurities lland llobtaining lland llgranting llcredit.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
4. Investors llare llinterested llin llfinancial llreporting llbecause llit llprovides llinformation llthat llis lluseful llfor
llmaking lldecisions.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
5. Users l l of l l financial l l accounting l l statements ll have ll both ll coinciding ll and ll conflicting
l l needs l l for llinformation llof llvarious lltypes.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
6. Although llthe llFASB llhas lldeveloped lla llconceptual llframework, llno llStatements llof llFinancial
llAccounting llConcepts llhave llbeen llissued llto lldate.
Ans: llF, llLO: ll1, llBloom: llK, llDifficulty: llModerate, llMin: ll1, llAACSB: llKnowledge, llAICPA llBC: llNone, llAICPA llAC: llReporting, llAICPA llPC: llNone, llIMA: llReporting ll&
l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
7. The llpassage llof lla llnew llFASB llAccounting llStandards llUpdate llrequires llthe llsupport llof llfive llof ll the
llseven llboard llmembers.
Ans: l l F, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
8. Statements llof llFinancial llAccounting llConcepts llset llforth llfundamental llobjectives lland l l concepts
llthat llare llused llby llthe llFASB llin lldeveloping llfuture llstandards llof llfinancial llaccounting lland llreporting.
Ans: l l T, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
9. The llFASB’s llCodification llcreates lla llnew llset llof llGAAP.
Ans: l l F, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
, 1 ll- ll2 Test llBank llfor llIntermediate llAccounting, llEighteenth
llEdition
10. The llobjective llof llfinancial llreporting llis llto llreport llthe llplans llmade llby lla llcompany llto llimprove llthe
llproductivity llof llits llemployees.
Ans: l l F, l l LO: l l 1, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llPreparation, llIFRS: llNone
11. A l l soundly l l developed l l conceptual l l framework l l enables l l the l l FASB l l to l l issue l l more
l l useful l l and llconsistent llpronouncements llover lltime.
Ans: l l T, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
12. A llconceptual llframework llis lla llcoherent llsystem llof llconcepts llthat llflow llfrom llan llobjective.
Ans: l l T, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
13. The l l first l l level l l of l l the l l conceptual l l framework l l identifies l l the l l recognition,
l l measurement, l l and lldisclosure llconcepts llused llin llestablishing llaccounting llstandards.
Ans: l l F, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
14. The llobjective llof llfinancial llreporting llserves llas llthe llfoundation llof llthe llconceptual llframework.
Ans: l l T, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
15. Users llof llfinancial llstatements llare llassumed llto llneed llno llknowledge llof llbusiness lland llfinancial
llaccounting llmatters llto llunderstand llthe llinformation llcontained llin llfinancial ll statements.
Ans: l l F, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
16. Relevance l l and l l faithful l l representation l l are l l the l l two l l fundamental
l l qualities l l that l l make llaccounting llinformation lluseful llfor lldecision-making.
Ans: l l T, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
17. The llidea llof llconsistency lldoes llnot llmean llthat llcompanies llcannot llswitch llfrom llone llaccounting
llmethod llto llanother.
Ans: llT, llLO: ll2, llBloom: llC, llDifficulty: llModerate, llMin: ll1, llAACSB: llKnowledge, llAICPA llBC: llNone, llAICPA llAC: llReporting, llAICPA llPC: llNone, llIMA: llReporting ll&
l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
18. Timeliness lland llneutrality llare lltwo llingredients llof llrelevance.
Ans: l l F, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
19. Verifiability lland llpredictive llvalue llare lltwo llingredients llof llfaithful llrepresentation.
Ans: l l F, l l LO: l l 2, l l Bloom: l l K, l l Difficulty: l l Easy, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Reporting, l l AICPA l l PC: l l None,
l l IMA: l l Reporting l l & l l Control: llFinancial llStatement llAnalysis, llIFRS: llNone
20. Revenues, llgains, lland lldistributions llto llowners llall llincrease llequity.
Ans: l l F, l l LO: l l 2, l l Bloom: l l C, l l Difficulty: l l Moderate, l l Min: l l 1, l l AACSB: l l Knowledge, l l AICPA l l BC: l l None, l l AICPA l l AC: l l Measurement l l Analysis l l and
l l Interpretation, ll AICPA llPC: llNone, llIMA: llReporting ll& llControl: llFinancial llStatement llAnalysis, llIFRS: llNone
21. Comprehensive l l income l l includes l l all l l changes l l in l l equity l l during l l a
l l period l l except l l those llresulting llfrom llinvestments llby llowners lland lldistributions llto llowners.
Ans: llT, llLO: ll2, llBloom: llK, llDifficulty: llEasy, llMin: ll1, llAACSB: llKnowledge, llAICPA llBC: llNone, llAICPA llAC: llMeasurement llAnalysis lland llInterpretation, llAICPA
l l PC: llNone, llIMA: llReporting ll& llControl: llFinancial llStatement llAnalysis, llIFRS: llNone
