1. A common set of accounting standards and procedures are called a. financial accounting standards. b. ...

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

Solutions

Expert Solution

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

ekkarill92 answered 1 year ago

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