Question 1

Numerical references to the Accounting Standards Codification are structured as Topic-Subtopic-Section-Paragraph.

Accepted Answer

A) True 
 B)False  True

Question 2

The second step in the applied financial accounting research process is to ________.

Accepted Answer

A) identify the issue 
B) search the authoritative literature 
C) establish the research question 
D) both A & C 
A) identify the issue 
B) search the authoritative literature 
C) establish the research question 
D) both A & C D

Question 3

The GAAP Hierarchy has ________ levels and the IFRS Hierarchy has ________ levels.

Accepted Answer

A) two,three 
B) three,three 
C) three,four 
D) three,two 
A) two,three 
B) three,three 
C) three,four 
D) three,two C

Question 4

The accounting policies footnote would be a good place to look if you want to know ________.

Accepted Answer

A) the inventory costing method used by a company 
B) the depreciation method used by a company 
C) the lives a company uses to depreciate plant assets 
D) both A & B 
E) all of the above 
A) the inventory costing method used by a company 
B) the depreciation method used by a company 
C) the lives a company uses to depreciate plant assets 
D) both A & B 
E) all of the above

Question 5

Which of the following is most likely based on an assumption?

Accepted Answer

A) accounting for an investment 
B) accounting for sales tax 
C) accounting for land 
D) both A & C 
A) accounting for an investment 
B) accounting for sales tax 
C) accounting for land 
D) both A & C

Question 6

You've been assigned to write a research paper for your Intermediate Accounting class.You have been assigned "derivatives" and are supposed to begin your research in the Codification.In which topic grouping would you begin?

Accepted Answer

A) 2XX 
B) 4XX 
C) 6XX 
D) 8XX 
A) 2XX 
B) 4XX 
C) 6XX 
D) 8XX

Question 7

Weighting one piece of information more heavily than others is an example of ________.

Accepted Answer

A) the overconfidence bias 
B) the anchoring bias 
C) the availability bias 
D) the groupthink bias 
A) the overconfidence bias 
B) the anchoring bias 
C) the availability bias 
D) the groupthink bias

Question 8

Step 6 of the financial accounting research process involves ________.

Accepted Answer

A) documenting of the research process 
B) communicating the results of the research process 
C) comparing alternative treatments 
D) both A & B 
A) documenting of the research process 
B) communicating the results of the research process 
C) comparing alternative treatments 
D) both A & B

Question 9

Depreciation Expense is based on estimates of ________.

Accepted Answer

A) the value of the asset 
B) the use and purpose of the asset 
C) the life and pattern of the asset's use 
D) the warranty that comes with the asset 
A) the value of the asset 
B) the use and purpose of the asset 
C) the life and pattern of the asset's use 
D) the warranty that comes with the asset

Question 10

During the research process,if you are unsure whether or not you've found all the relevant literature,what should you do?

Accepted Answer

A) Call your manager to verify that you've found it all. 
B) Complain that it's too much work and call it a day. 
C) Google it to see if there is anything else you've missed. 
D) Use the search engine included in the Codification. 
A) Call your manager to verify that you've found it all. 
B) Complain that it's too much work and call it a day. 
C) Google it to see if there is anything else you've missed. 
D) Use the search engine included in the Codification.

Question 11

Complete the following table.Identify which cognitive bias is represented in each example.

Accepted Answer

The answer of Complete the following table.Identify which cognitive bias...

Question 12

U.S.GAAP includes all of the following except ________.

Accepted Answer

A) Statements of Financial Accounting Standards 
B) Accounting Research Bulletins 
C) Accounting Principles Board Opinions 
D) All of the above are authoritative literature on U.S.GAAP 
A) Statements of Financial Accounting Standards 
B) Accounting Research Bulletins 
C) Accounting Principles Board Opinions 
D) All of the above are authoritative literature on U.S.GAAP

Question 13

The highest level of authoritative guidance for U.S.GAAP is the Accounting Standards Codification.

Accepted Answer

A) True 
 B)False

Question 14

Bill Smith is on assignment for his first audit,when he runs into an accounting practice he's never dealt with before.Rather than asking a more experienced colleague for advice,Bill decides he knows enough to handle it.After all,he passed the CPA exam,didn't he? Bill is exhibiting ________.

Accepted Answer

A) arrogance bias 
B) overconfidence bias 
C) anchoring bias 
D) poor judgment 
A) arrogance bias 
B) overconfidence bias 
C) anchoring bias 
D) poor judgment

Question 15

Failing to adequately weigh information which is inconsistent with an individual's initial beliefs is known as ________.

Accepted Answer

A) the anchoring bias 
B) the overconfidence bias 
C) the groupthink bias 
D) the confirmatory bias 
A) the anchoring bias 
B) the overconfidence bias 
C) the groupthink bias 
D) the confirmatory bias

Question 16

Accountants undertake financial accounting research when a standard is unclear.Discuss why the standards may be unclear.Give at least one example.

Accepted Answer

Accounting standards may be unclear when

Question 17

Ron Fowler,CPA isn't quite sure how to handle a deferred cost transaction.In which topic grouping should he begin his research?

Accepted Answer

A) 2XX 
B) 3XX 
C) 4XX 
D) 5XX 
A) 2XX 
B) 3XX 
C) 4XX 
D) 5XX

Question 18

The ________ is generally one of the first notes to the financial statements.

Accepted Answer

A) accounting policies footnote 
B) contingencies footnote 
C) employee benefits footnote 
D) intangibles explanation footnote 
A) accounting policies footnote 
B) contingencies footnote 
C) employee benefits footnote 
D) intangibles explanation footnote

Question 19

Cognitive biases can impede an accountants' use of good judgment.

Accepted Answer

A) True 
 B)False

Question 20

In practice,accountants frequently use ________ to prepare and audit financial statements.

Accepted Answer

A) clear-cut methods 
B) judgment 
C) strict rules 
D) imagination 
A) clear-cut methods 
B) judgment 
C) strict rules 
D) imagination

Exam 3: Judgment and Applied Financial Accounting Research

Numerical references to the Accounting Standards Codification are structured as Topic-Subtopic-Section-Paragraph.

The second step in the applied financial accounting research process is to ________.

The GAAP Hierarchy has ________ levels and the IFRS Hierarchy has ________ levels.

The accounting policies footnote would be a good place to look if you want to know ________.

Which of the following is most likely based on an assumption?

You've been assigned to write a research paper for your Intermediate Accounting class.You have been assigned "derivatives" and are supposed to begin your research in the Codification.In which topic grouping would you begin?

Weighting one piece of information more heavily than others is an example of ________.

Step 6 of the financial accounting research process involves ________.

Depreciation Expense is based on estimates of ________.

During the research process,if you are unsure whether or not you've found all the relevant literature,what should you do?

Complete the following table.Identify which cognitive bias is represented in each example.

U.S.GAAP includes all of the following except ________.

The highest level of authoritative guidance for U.S.GAAP is the Accounting Standards Codification.

Bill Smith is on assignment for his first audit,when he runs into an accounting practice he's never dealt with before.Rather than asking a more experienced colleague for advice,Bill decides he knows enough to handle it.After all,he passed the CPA exam,didn't he? Bill is exhibiting ________.

Failing to adequately weigh information which is inconsistent with an individual's initial beliefs is known as ________.

Accountants undertake financial accounting research when a standard is unclear.Discuss why the standards may be unclear.Give at least one example.

Ron Fowler,CPA isn't quite sure how to handle a deferred cost transaction.In which topic grouping should he begin his research?

The ________ is generally one of the first notes to the financial statements.

Cognitive biases can impede an accountants' use of good judgment.

In practice,accountants frequently use ________ to prepare and audit financial statements.

The Financial Reporting Environment

Financial Reporting Theory

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters

The GAAP Hierarchy has levels and the IFRS Hierarchy has levels.