Accounting
Which of the following types of information would be categorized as financial information?
All of the above, Asset values governed by accounting standards, Footnote disclosures in annual reports, Auditor's report
Currently, what is the single source of generally accepted accounting principles in the United States?
Accounting Standards Codification
__occurs when managers manipulate financial information and misrepresent the firm's financial position and performance.
Earnings management
________ is the amount at which a liability could be incurred or settled in a current transaction between willing parties.
Fair value
Which organization is responsible for promulgating U.S. GAAP?
Financial Accounting Standards Board
are identical under U.S. GAAP and IFRS.
Objective and Qualitative Characteristics
The first step in the accounting cycle is to ________.
analyze transactions
Which of the following errors would cause the adjusted trial balance to not balance?
failure to post one side of a journal entry
The two fundamental characteristics of financial information are ________.
faithful representation and relevance
Which of the following is most likely based on assumptions?
Depreciation expense
Which of the following accounts is a temporary account?
Interest Expense
Which of the following accounts would be shown on the post-closing trial balance?
Investments
________ indicates whether financial information depicts an economic event in a way that is complete, neutral, and free from error.
Relevance
Which of the following statements correctly identifies accounting standard setters?
The FASB promulgates accounting standards in the U.S. and the IASB issues international accounting standards.
When a prepaid expense initially recorded as an asset is incurred, the adjusting entry includes ________.
a debit to an expense
What are the attributes of relevant information?
complete, neutral, free from error
Financial statements should provide all financial information that is relevant and faithfully representative within the limitations of the ________ constraint.
cost
Bradley Company paid $25,000 in dividends to its shareholders. This transaction ________.
decreased shareholders' equity
Accounting standards allow financial statement preparers to use judgement in a manner that best represents ________.
economic reality
In transferring information to the general ledger, the reference column in the ledger contains the ________.
general ledger page number
Which of the following is not one of the four basic financial statements?
general-purpose financial statement
The process by which an accountant reaches a decision in situations with multiple alternatives is referred to as ________.
judgment
Auditors should exercise ________ to minimize management bias.
professional skepticism
In the conceptual framework, what are the two types of elements of financial reporting?
recognition and measurement
Which of the following is not an underlying assumption in U.S. GAAP financial reporting?
reliability concept
The accounting policies footnote is ________.
required by U.S. GAAP
According to U.S. GAAP, changes in equity that result from the company's central business operations are ________.
revenues and expenses
Depreciation expense is based on estimates of ________.
the life and pattern of the asset's use
Being more confident than your abilities or experience level warrant is an example of ________
the overconfidence bias
Which element of financial accounting involves identifying the individuals who demand financial information?
user groups