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