Exam 1: Introduction to Financial Reporting

Match the letter of each phrase with the appropriate definition. -Issued official opinion on accounting standards between 1959-1973.

In the United States,the issue of financial reporting standards for small and medium-sized entities (SME)has been debated for many years.These debates did not result in separate standards for SME.

Accounting standards codification ^TM addresses U.S.GAAP for nongovernmental entities.

The realization principle leads accountants to usually recognize revenue at:

In 2007,the Securities and Exchange Commission announced that it would accept financial statements from foreign private issues without reconciliation to U.S.GAAP if they are prepared using IFRS as issued by the International Accounting Standards Board.

Match the letter of each element with the appropriate definition. -Outflows or other consumption or using up of assets or incurrences of liabilities (or a combination of both)from delivering or producing goods,rendering services,or carrying out other activities that constitute the entity's ongoing major or central operations.

Accounting Trends & Techniques is a compilation of data obtained by a survey of annual reports to stockholders undertaken for the purpose of analyzing the accounting information disclosed in such reports.

Match the letter of each Concept Statement with the Concept Statement title. -Objective of Financial Reporting by Business Enterprises

Performance indicators for nonbusiness organizations are usually formal budgets and donor restrictions.

The Financial Accounting Standards Board has issued statements between:

Match the letter of each Concept Statement with the Concept Statement title. -Objectives of Financial Reporting by nonbusiness

At the end of the fiscal year,an adjusting entry is made that increases salaries payable and increases salaries expense.This entry is an application of which accounting principle?

Financial Accounting Concepts establish generally accepted accounting principles.

Match the letter of each Concept Statement with the Concept Statement title. -Recognition and Measurement in Financial Statements of Business Enterprise

Eventually,the Financial Accounting Standards Board intends to evaluate current principles in terms of the concepts established in the Financial Accounting Concepts.

For a public company,the SEC requires that a report be filed annually on its internal control systems.

A loss in value of money is called inflation.

Match the letter of each phrase with the appropriate definition. -This board issues four types of pronouncements: (1)Statements of Financial Accounting Standards (SFAS), (2)Interpretations, (3)Technical Bulletins,and (4)Statements of Financial Accounting Concepts (SFAC).

It would always be conservative to value inventory at market.

Match the letter of each principle or assumption or qualitative characteristic with the appropriate statement. -Some industry practices lead to accounting reports that do not conform to the general theory that underlies accounting.