ACCOUNTING 3300 SOLVED QUESTIONS
PRACTICE SOLUTION FULL SOLUTION VIEW
AHEAD EXAM GUARANTEED TO PASS
◉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?
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?
a.) To enable the profession to more quickly solve emerging practical
problems.
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.
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
c.) Elements of financial statements
d.) Objective of financial reporting Ans: D
◉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.
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.
d.) All of these answer choices are correct. Ans: A
◉If the LIFO inventory method was used last period, it should be 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
◉Which of the following is a fundamental quality of useful accounting
information?
a.) Comparability.
b.) Relevance.
c.) Neutrality.
d.) Materiality. Ans: B
PRACTICE SOLUTION FULL SOLUTION VIEW
AHEAD EXAM GUARANTEED TO PASS
◉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?
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?
a.) To enable the profession to more quickly solve emerging practical
problems.
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.
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
c.) Elements of financial statements
d.) Objective of financial reporting Ans: D
◉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.
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.
d.) All of these answer choices are correct. Ans: A
◉If the LIFO inventory method was used last period, it should be 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
◉Which of the following is a fundamental quality of useful accounting
information?
a.) Comparability.
b.) Relevance.
c.) Neutrality.
d.) Materiality. Ans: B
