Question 1

The major financial statements include all of the following except:

Accepted Answer

A)  Statement of financial position. 
B)  Statement of changes in financial position. 
C)  Statement of comprehensive income. 
D)  Statement of changes in equity. 
A)  Statement of financial position. 
B)  Statement of changes in financial position. 
C)  Statement of comprehensive income. 
D)  Statement of changes in equity. B

Question 2

IFRS tends to be simpler and more flexible in the accounting and disclosure requirements than U.S. GAAP.

Accepted Answer

A) True 
 B)False  True

Question 3

Capital markets are increasingly integrated and companies have greater flexibility in deciding where to raise capital.

Accepted Answer

A) True 
 B)False  True

Question 4

The standard-setting structure used by the International Accounting Standards Board is very similar to that used by the Financial Accounting Standards Board.

Accepted Answer

A) True 
 B)False

Question 5

The expectations gap is caused by what the public thinks accountants should be doing and what accountants think they can do.

Accepted Answer

A) True 
 B)False

Question 6

Ethical issues in financial accounting are governed by the AICPA.

Accepted Answer

A) True 
 B)False

Question 7

What is due process in the context of standard setting at the IASB?

Accepted Answer

A)  IASB operates in full view of the public. 
B)  Public hearings are held on proposed accounting standards. 
C)  Interested parties can make their views known. 
D)  All of these answers are correct. 
A)  IASB operates in full view of the public. 
B)  Public hearings are held on proposed accounting standards. 
C)  Interested parties can make their views known. 
D)  All of these answers are correct.

Question 8

Which of the following is an ethical concern of accountants?

Accepted Answer

A)  Earnings manipulation. 
B)  Conservative accounting. 
C)  Industry practices. 
D)  None of the above. 
A)  Earnings manipulation. 
B)  Conservative accounting. 
C)  Industry practices. 
D)  None of the above.

Question 9

Which of the following is not one of the major types of pronouncements issued by the International Accounting Standards Board (IASB)?

Accepted Answer

A)  International financial reporting standard. 
B)  Memorandum of understanding. 
C)  Framework for financial reporting. 
D)  International financial reporting interpretations. 
A)  International financial reporting standard. 
B)  Memorandum of understanding. 
C)  Framework for financial reporting. 
D)  International financial reporting interpretations.

Question 10

The standards issued by various standard-setting organizations around the world include standards that are profit-oriented and investor-focused.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following has the highest authoritative support?

Accepted Answer

A)  International Financial Reporting Standards. 
B)  International Accounting Standards. 
C)  Interpretations of the IFRIC. 
D)  Framework for Financial Reporting. 
A)  International Financial Reporting Standards. 
B)  International Accounting Standards. 
C)  Interpretations of the IFRIC. 
D)  Framework for Financial Reporting.

Question 12

The International Organization of Securities Commissions (IOSCO) sets accounting standards for those countries which have not yet adopted IFRS.

Accepted Answer

A) True 
 B)False

Question 13

Which of these statements regarding the IFRS and U.S. GAAP is correct?

Accepted Answer

A)  U.S. GAAP is considered to be "principles-based" and more detailed than IFRS. 
B)  U.S. GAAP is considered to be "rules-based" and less detailed than IFRS. 
C)  IFRS is considered to be "principles-based" and less detailed than U.S. GAAP 
D)  Both U.S. GAAP and IFRS are considered to be "rules-based", but U.S. GAAP tends to be more complex. 
A)  U.S. GAAP is considered to be "principles-based" and more detailed than IFRS. 
B)  U.S. GAAP is considered to be "rules-based" and less detailed than IFRS. 
C)  IFRS is considered to be "principles-based" and less detailed than U.S. GAAP 
D)  Both U.S. GAAP and IFRS are considered to be "rules-based", but U.S. GAAP tends to be more complex.

Question 14

The passage of a new International Financial Reporting Standards Statement requires the support of ten of the thirteen board members.

Accepted Answer

A) True 
 B)False

Question 15

What is a possible danger if politics plays too big a role in developing IFRS?

Accepted Answer

A)  Financial reporting standards that are issued that are not truly generally accepted. 
B)  Individuals may influence the standards. 
C)  User groups become active. 
D)  The IASB delegates its authority to elected officials. 
A)  Financial reporting standards that are issued that are not truly generally accepted. 
B)  Individuals may influence the standards. 
C)  User groups become active. 
D)  The IASB delegates its authority to elected officials.

Question 16

Politics and political pressure in establishing IFRS is a negative force.

Accepted Answer

A) True 
 B)False

Question 17

Significant financial reporting issues facing global financial reporting and efficient capital allocation include all of the following except:

Accepted Answer

A)  How to provide backward-looking information. 
B)  How to report nonfinancial measures such as customer satisfaction. 
C)  How to provide forward-looking information. 
D)  How to provide real-time financial statement information. 
A)  How to provide backward-looking information. 
B)  How to report nonfinancial measures such as customer satisfaction. 
C)  How to provide forward-looking information. 
D)  How to provide real-time financial statement information.

Question 18

The information provided by financial reporting pertains to

Accepted Answer

A)  individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers. 
B)  business industries, rather than to individual enterprises or an economy as a whole or to members of society as consumers. 
C)  individual business enterprises, industries, and an economy as a whole, rather than to members of society as consumers. 
D)  an economy as a whole and to members of society as consumers, rather than to individual enterprises or industries. 
A)  individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers. 
B)  business industries, rather than to individual enterprises or an economy as a whole or to members of society as consumers. 
C)  individual business enterprises, industries, and an economy as a whole, rather than to members of society as consumers. 
D)  an economy as a whole and to members of society as consumers, rather than to individual enterprises or industries.

Question 19

IFRS is considered more comprehensive than U.S. GAAP and the standards contain more implementation guidance than U.S. GAAP.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true with regard to the characteristics of the International Accounting Standards Board (IASB)?

Accepted Answer

A)  A unanimous vote by all Board members is needed to issue a new International Financial Reporting Standard (IFRS). 
B)  The IASB consists of 13 part-time members. 
C)  Each member of the IASB must come from a different country. 
D)  IASB members are appointed for 5-year renewable terms. 
A)  A unanimous vote by all Board members is needed to issue a new International Financial Reporting Standard (IFRS). 
B)  The IASB consists of 13 part-time members. 
C)  Each member of the IASB must come from a different country. 
D)  IASB members are appointed for 5-year renewable terms.

The major financial statements include all of the following except:

IFRS tends to be simpler and more flexible in the accounting and disclosure requirements than U.S. GAAP.

Capital markets are increasingly integrated and companies have greater flexibility in deciding where to raise capital.

The standard-setting structure used by the International Accounting Standards Board is very similar to that used by the Financial Accounting Standards Board.

The expectations gap is caused by what the public thinks accountants should be doing and what accountants think they can do.

Ethical issues in financial accounting are governed by the AICPA.

What is due process in the context of standard setting at the IASB?

Which of the following is an ethical concern of accountants?

Which of the following is not one of the major types of pronouncements issued by the International Accounting Standards Board (IASB)?

The standards issued by various standard-setting organizations around the world include standards that are profit-oriented and investor-focused.

Which of the following has the highest authoritative support?

The International Organization of Securities Commissions (IOSCO) sets accounting standards for those countries which have not yet adopted IFRS.

Which of these statements regarding the IFRS and U.S. GAAP is correct?

The passage of a new International Financial Reporting Standards Statement requires the support of ten of the thirteen board members.

What is a possible danger if politics plays too big a role in developing IFRS?

Politics and political pressure in establishing IFRS is a negative force.

Significant financial reporting issues facing global financial reporting and efficient capital allocation include all of the following except:

The information provided by financial reporting pertains to

IFRS is considered more comprehensive than U.S. GAAP and the standards contain more implementation guidance than U.S. GAAP.

Which of the following is true with regard to the characteristics of the International Accounting Standards Board (IASB)?

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Statement of Financial Position and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters

Exam 1: Financial Reporting and Accounting Standards

The major financial statements include all of the following except:

IFRS tends to be simpler and more flexible in the accounting and disclosure requirements than U.S. GAAP.

Capital markets are increasingly integrated and companies have greater flexibility in deciding where to raise capital.

The standard-setting structure used by the International Accounting Standards Board is very similar to that used by the Financial Accounting Standards Board.

The expectations gap is caused by what the public thinks accountants should be doing and what accountants think they can do.

Ethical issues in financial accounting are governed by the AICPA.

What is due process in the context of standard setting at the IASB?

Which of the following is an ethical concern of accountants?

Which of the following is not one of the major types of pronouncements issued by the International Accounting Standards Board (IASB)?

The standards issued by various standard-setting organizations around the world include standards that are profit-oriented and investor-focused.

Which of the following has the highest authoritative support?

The International Organization of Securities Commissions (IOSCO) sets accounting standards for those countries which have not yet adopted IFRS.

Which of these statements regarding the IFRS and U.S. GAAP is correct?

The passage of a new International Financial Reporting Standards Statement requires the support of ten of the thirteen board members.

What is a possible danger if politics plays too big a role in developing IFRS?

Politics and political pressure in establishing IFRS is a negative force.

Significant financial reporting issues facing global financial reporting and efficient capital allocation include all of the following except:

The information provided by financial reporting pertains to

IFRS is considered more comprehensive than U.S. GAAP and the standards contain more implementation guidance than U.S. GAAP.

Which of the following is true with regard to the characteristics of the International Accounting Standards Board (IASB)?

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Statement of Financial Position and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters