In: Accounting
1. A common set of accounting standards and procedures
are called
a. financial accounting standards.
b. generally accepted accounting principles.
c. objectives of financial reporting.
d. statements of financial accounting concepts.
2. Corporations whose securities are listed on a U.S.
stock exchange are required to file audited financial statements
with the SEC.
a. True
b. False
3. The objective of financial reporting identifies
__________________ as the primary users of general-purpose
financial statements.
a. managers
b. regulators (IRS and SEC)
c. investors and creditors
d. employees
4. Which of the following user groups influence the
formulation of accounting standards?
a. Academics
b. Accounting firms
c. Government
d. All of these choices are correct
5. Which of the following is NOT one of the financial
statements?
a. Balance sheet
b. Income statement
c. Statement of cash flows
d. Statement of dividends
6. Which of the following does NOT describe the
fundamental quality relevance?
a. Confirmative value
b. Materiality
c. Predictive value
d. Completeness
7. Which of the following is reported on a financial
statement at a moment in time?
a. Revenues
b. Gains
c. Assets
d. Distributions to owners
8. Which of the following describes the economic entity
assumption?
a. Company keeps its activities separate from its
owners and other businesses
b. Company will last long enough to fulfill objectives
and commitments
c. Money is the common denominator of economic
activity
d. Company can divide its economic activities into time
periods
9. Any facts of sufficient importance to influence the
judgment and decisions of an informed reader should be included in
the financial statements. Which of the following principles does
this statement describe?
a. Expense recognition
b. Full disclosure
c. Measurement
d. Revenue recognition
10. Which of the following is NOT an enhancing
quality?
a. Comparability
b. Neutrality
c. Timeliness
d. Understandability
1. A common set of accounting standards and procedures are called
Answer: b. generally accepted accounting principles.
2. Corporations whose securities are listed on a U.S. stock exchange are required to file audited financial statements with the SEC.
Answer : a. True
3. The objective of financial reporting identifies __________________ as the primary users of general-purpose financial statements.
Answer : c. investors and creditors
4. Which of the following user groups influence the formulation of accounting standards?
Answer : d. All of these choices are correct
5. Which of the following is NOT one of the financial statements?
Answer :d. Statement of dividends