ACCTMIS 3200 Ch.1 SB Corrections

In which of the following areas did the FASB and IASB already develop converged accounting standards?

Earnings-per-share Share-based compensation Non-monetary exchanges

Which of the following types of companies may currently utilize IFRS for financial reporting in the U.S.?

Foreign companies that issue stock in the U.S.

The organization that is responsible for the accounting standard setting process for states and cities in the United States is the

Governmental Accounting Standards Board

The acronym GASB refers to the

Governmental Accounting Standards Board.

The organization responsible for the Code of Professional Conduct for accountants providing auditing services to their own organizations is the Multiple choice question.

Institute of Internal Auditors

The organization responsible for the code of ethics for accountants working in government and industry is the

Institute of Management Accountants

Which of the following are steps the FASB takes before issuing an Accounting Standards Update? (Select all that apply.)

Receives requests from stakeholders The Board holds a public meeting

Financial assets and liabilities can be reported

at fair value or historical cost

______ include(s) all changes in equity during a period except those resulting from investments by owners and distributions to owners.

comprehensive income

Which approach to measuring fair value determines fair value by estimating the amount that would be required to buy or construct an asset of similar quality and condition?

cost approach

The principle stating that asset and liability measurements should be based on the amount given or received in the original transaction is referred to as the___________principle

historical cost

The four basic accounting assumptions (Select all that apply.)

identify the denomination in which reporting occurs identify the frequency of reporting identify the entity being reported on assume the entity will continue to exist

What approach to measuring fair value estimates future amounts of earnings or cash flows and then mathematically converts these amounts to a single present value?

income approach

The going concern assumption is critical to the measurement of assets because if a business were going to cease operations, its assets would be measured at their

liquidation values.

A company purchases a building by signing a $200,000 10% interest-bearing note due at the end of five years. At what amount should the building be recorded?

$200,000

The citation used to reference generally accepted accounting principles is

FASB ASC

True or false: In the United States, sole proprietorships and partnerships outnumber corporations

True

Financial accounting provides investors with information that should help them to evaluate the (Select all that apply.)

amounts of the firm's future cash flow. uncertainty of the firm's future cash flow. timing of the firm's future cash flow.

In developing standards, the FASB considers the:

economic transactions that standards will address views of key constituents

What are the requirements of all states to become a licensed certified public accountant? (Select all that apply.) Multiple select question.

experience testing education

Increases in equity of a particular business enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interests is a(n) ___________________by owners.

investment

The fair value approach that uses current information from recent transactions or exchanges in active trading on stock exchanges is the___________approach

market

The fair value approach that uses current information from recent transactions or exchanges in active trading on stock exchanges is the__________approach

market

Which approach to measuring fair value uses information from actively traded stock on the New York Stock Exchange?

market

The Emerging Issues Task Force (EITF) was formed to resolve Blank______ financial accounting issues within the framework of existing GAAP.

narrowly-defined

Another term for equity is

net assets

Measuring assets at what value helps financial statement users predict a company's future cash flows?

net realizable value

The amount of cash into which an asset is expected to be converted in the normal course of business is the asset's

net realizable value

The objective in valuing an asset or liability using ___________{ value is to approximate its fair value

present

Proponents of objectives-based standards assert that

professional judgment minimizes sidestepping of rules

The objectives of financial accounting include (Select all that apply.)

provide information to investors and creditors. provide information used to evaluate future cash flows.

Revenue recognition was previously based on the ___________ principle, which required that two criteria be satisfied before revenue can be recognized: The earnings process is complete or virtually complete and there is reasonable certainty as to collectibility. (

realization

The accrual accounting model's measure of resources provided by business operations is

revenue

In which of the following areas did the FASB and IASB achieve converged standards?

revenue recognition

The Accounting Standards Codification is organized into

topics and subtopics