Exam 3: Judgment and Applied Financial Accounting Research

Is it possible to know where management applied judgment in the financial statements?

Failure to consider all reasonable alternatives when reaching a group consensus,in an attempt to avoid conflict is an example of ________.

An accountant may find that there is no single correct answer to his or her research question in the accounting literature.

Your accounting client operates a website through which it sells products offered by other companies.You have gathered facts that indicate your client is an order-taker who receives payments from customer-buyers through its website then sends the order to the other company so they can ship their product to the customer.You have identified an accounting issue that suggests your client is acting as an agent for the other company which brings into question the way they recognize revenue from the transaction.Briefly describe you should proceed in resolving this accounting research question.

Identify the level of the IFRS Literature Hierarchy that each item belongs to.

Which of the following is not a required attribute for information to be considered reliable under IFRS?

The Codification is divided into ________.

Why is it important for accountants to understand the structure of the Codification?

An attitude that includes a questioning mind and a critical assessment of audit evidence is known as ________.

List the techniques accountants can use to mitigate cognitive biases.

Which of the following presents the steps for the applied accounting research process in the correct order?

The Basis for Conclusions found in accounting pronouncements are found in the Codification for U.S.GAAP.

In ASC 450-20-35-2,20 represents the ________.

________ is the systematic investigation into an issue.

Documenting the rationale for decisions made can help mitigate cognitive biases.

Questions such as "what parties are involved?" and "what is the timing of the transaction?" would first be addressed in which step of the financial accounting research process?

Step 3 in the financial accounting research process involves ________.

You just got hired to do accounting for Starlight Espresso,which is a boutique coffee production company.The owner approaches you and says that he's concerned about the crops this year,because he heard that many of them could be ruined because of a disease affecting the shrubs this year.If the supply is limited,he fears prices will go up; however,he said a friend of his told him he should look into futures contracts.He would like you to find out if this can help save the company money,and also explain to him what a futures contract is.Eager to impress the owner,you decide to put your accounting research skills to use.How would you approach the first two steps of the research process given the information in this problem?

Psychics R' Us has a new and unique revenue stream,but they are unsure when to recognize the revenue.Their accountant is unsure as well.In which topic grouping would she find more information about revenue recognition?

Riley Watson,lead salesperson for Bowman Industries,begins customer negotiations by proposing an unusually high price.Riley is hoping her customer will exhibit which cognitive bias in the negotiations?