Exam 1: The Environment of Financial Reporting

Issuance of a new International Accounting Standard requires approval of at least

Which pronouncements are not issued by the FASB?

Listed below are the ten steps the FASB goes through in issuing a new Statement. ____ $\quad$ a. $\quad$ Conduct research ____ $\quad$ b. $\quad$ Deliberate an findings ____ $\quad$ c. $\quad$ Hold public hearings ____ $\quad$ d. $\quad$ Identify topic ____ $\quad$ e. $\quad$ Issue Discussion Memorandum ____ $\quad$ f. $\quad$ Issue Exposure Draft ____ $\quad$ g. $\quad$ Issue Statament ____ $\quad$ h. $\quad$ Modify Figareure Draft ____ $\quad$ i. $\quad$ Vote Required: Indicate the proper sequence of these steps.

The purposes of the joint long-term project of the FASB and IASB to converge revenue recognition principles include all of the following except

The Securities and Exchange Commission has the legal authority to prescribe accounting principles and reporting practices for

Which of the following pronouncements issued by the FASB does not provide for the highest level of authoritative support?

Creditors' information needs revolve around all of the following decisions, except

Auditors face ethical issues because

Exchanges of capital stock and bonds between a corporation and investors take place in

While formally the SEC is charged with the responsibility for establishing accounting principles to be followed in the preparation of SEC filings, the impact of the SEC generally has been

Listed below are 12 characteristics of accounting, some of which are more closely related to financial accounting, while others are related to managerial accounting. Required: Indicate which characteristic is financial and which is managerial by placing an (F)or an (M)in the space provided.

Conversion to IFRS reporting by all U.S.companies would be best accomplished with a transition plan for all of the following reasons except

Which of the following documents includes all of the accounting standards?

Assume you are tutoring a beginning accounting student who tells you that the members of the FASB must have a great deal of power because they have the authority to issue standards that dictate accounting procedure. Required: Explain why accounting standards are the result of compromise and how such compromises are reached.

Going from 1938 to the present, which is the correct sequence of accounting rule-making bodies?

The SEC has several reporting choices.It can require that U.S.companies use U.S.GAAP in their financial statement filings.Alternatively, the SEC can require or allow U.S.companies to use IFRS in their financial statement filings.Many issues and complexities surround the use of IFRS. Required: Identify and discuss five of the issues to be considered by the SEC in deliberating this proposal.

Which of the following is an internal user of a company's financial information?

The FASB Accounting Standards Codification is expected to provide all of the following benefits except

Notes to financial statements provide

The organization that presently has the primary responsibility to establish generally accepted accounting principles that are applicable to the financial statements of entities in the U.S.private sector is the