Question 1

Under which of the following circumstances should rigid uniformity be used?

Accepted Answer

A) If the event is a not a simple event. 
B) If the event is a complex event in which finite uniformity cannot be instituted in a cost-effective manner. 
C) Both a and b. 
D) None of the above; rigid uniformity should never by used. 
A) If the event is a not a simple event. 
B) If the event is a complex event in which finite uniformity cannot be instituted in a cost-effective manner. 
C) Both a and b. 
D) None of the above; rigid uniformity should never by used.

Question 2

The SEC requires disclose of both retrospective and prospective information in the Management's Discussion and Analysis section of the annual report.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not listed by Fields, Lys, and Vincent as a possible reason underlying management choice?

Accepted Answer

A) Minimizing agency cost 
B) Comparability 
C) Signaling 
D) Influencing outside parties 
A) Minimizing agency cost 
B) Comparability 
C) Signaling 
D) Influencing outside parties

Question 4

Under which of the following circumstances should finite uniformity be used?

Accepted Answer

A) If the event is a simple event. 
B) If the event is a complex event in which relevant circumstances cannot be measured and implemented in a cost-effective manner. 
C) If the event is a complex event in which relevant circumstances can be measured and implemented in a cost-effective manner. 
D) Both a and b. 
A) If the event is a simple event. 
B) If the event is a complex event in which relevant circumstances cannot be measured and implemented in a cost-effective manner. 
C) If the event is a complex event in which relevant circumstances can be measured and implemented in a cost-effective manner. 
D) Both a and b.

Question 5

Which of the following represents the approach to interim reporting favored by APB Opinion No. 28?

Accepted Answer

A) The integral view 
B) Disjointed view 
C) The discrete view 
D) The linked view 
A) The integral view 
B) Disjointed view 
C) The discrete view 
D) The linked view

Question 6

Accounting for inventory and cost of goods sold and for depreciation is an example of:

Accepted Answer

A) elastic uniformity. 
B) finite uniformity. 
C) flexibility. 
D) rigid uniformity. 
A) elastic uniformity. 
B) finite uniformity. 
C) flexibility. 
D) rigid uniformity.

Question 7

Viewing each interim period as a separate period standing on its own is called:

Accepted Answer

A) the integral view. 
B) the disjointed view. 
C) the discrete view. 
D) the linked view. 
A) the integral view. 
B) the disjointed view. 
C) the discrete view. 
D) the linked view.

Question 8

How does the concept of uniformity relate to comparability in the accounting literature?

Accepted Answer

In the accounting literature, the concep

Question 9

Improving comparability may lessen relevance or reliability.

Accepted Answer

A) True 
 B)False

Question 10

Since the 1970s, the SEC appears to have shifted its emphasis toward informative disclosure rather than protective disclosure.

Accepted Answer

A) True 
 B)False

Question 11

Circumstantial variables are environmental conditions that possess which of the following qualities?

Accepted Answer

A) Excessive measurement costs 
B) A high degree of verifiability relative to other accounting methods 
C) Both a and b 
D) None of the above 
A) Excessive measurement costs 
B) A high degree of verifiability relative to other accounting methods 
C) Both a and b 
D) None of the above

Question 12

Which of the following is a provision of SFAS No. 131?

Accepted Answer

A) Segment liabilities must be reported, but reported segment assets is optional. 
B) Reconciliation of segment profit or loss to consolidated profit of loss must be done before income taxes. 
C) A segment is constituted by having 20% or more of combined revenue of all operating segments. 
D) Segment reporting is based on the way management organizes the segments for making operating decisions and assessing performance. 
A) Segment liabilities must be reported, but reported segment assets is optional. 
B) Reconciliation of segment profit or loss to consolidated profit of loss must be done before income taxes. 
C) A segment is constituted by having 20% or more of combined revenue of all operating segments. 
D) Segment reporting is based on the way management organizes the segments for making operating decisions and assessing performance.

Question 13

From a theoretical standpoint, which of the following represents the approach to interim reporting with the most validity?

Accepted Answer

A) The integral view 
B) The disjointed view 
C) The discrete view 
D) The linked view 
A) The integral view 
B) The disjointed view 
C) The discrete view 
D) The linked view

Question 14

Signalling theory appears to be inconsistent with the advocacy of greater disclosure.

Accepted Answer

A) True 
 B)False

Question 15

Flexibility is an approach to the uniformity problem.

Accepted Answer

A) True 
 B)False

Question 16

What is meant by differential disclosure? Identify the three differential disclosure proposals discussed in the text.

Accepted Answer

Differential disclosure as it is in effe

Question 17

Relevant circumstances are an important aspect of the uniformity issue.

Accepted Answer

A) True 
 B)False

Question 18

An organized disclosure policy that includes "bad news" is beneficial to all parties because uncertainty about the firm is reduced.

Accepted Answer

A) True 
 B)False

Question 19

Lev advocated restricting disclosures to "good news" items only.

Accepted Answer

A) True 
 B)False

Question 20

Management disclosures in the face of a major earnings surprise may take the form of conference calls with analyst or public announcements via news services.

Accepted Answer

A) True 
 B)False

Under which of the following circumstances should rigid uniformity be used?

The SEC requires disclose of both retrospective and prospective information in the Management's Discussion and Analysis section of the annual report.

Which of the following is not listed by Fields, Lys, and Vincent as a possible reason underlying management choice?

Under which of the following circumstances should finite uniformity be used?

Which of the following represents the approach to interim reporting favored by APB Opinion No. 28?

Accounting for inventory and cost of goods sold and for depreciation is an example of:

Viewing each interim period as a separate period standing on its own is called:

How does the concept of uniformity relate to comparability in the accounting literature?

Improving comparability may lessen relevance or reliability.

Since the 1970s, the SEC appears to have shifted its emphasis toward informative disclosure rather than protective disclosure.

Circumstantial variables are environmental conditions that possess which of the following qualities?

Which of the following is a provision of SFAS No. 131?

From a theoretical standpoint, which of the following represents the approach to interim reporting with the most validity?

Signalling theory appears to be inconsistent with the advocacy of greater disclosure.

Flexibility is an approach to the uniformity problem.

What is meant by differential disclosure? Identify the three differential disclosure proposals discussed in the text.

Relevant circumstances are an important aspect of the uniformity issue.

An organized disclosure policy that includes "bad news" is beneficial to all parties because uncertainty about the firm is reduced.

Lev advocated restricting disclosures to "good news" items only.

Management disclosures in the face of a major earnings surprise may take the form of conference calls with analyst or public announcements via news services.

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

Development of Institutional Structure of Financial Accounting

The Economics of Financial Reporting Regulation

Postulates, Principles, and Concepts

The Search for Objectives

The Fasbs Conceptual Framework

Usefulness of Accounting Information to Investors and Creditors

International Accounting

The Balance Sheet

The Income Statement

Statement of Cash Flows

Income Taxes and Financial Accounting

Pensions and Other Postretirement Benefits

Leases

Intercorporate Equity Investments

Filters

Exam 9: Uniformity and Disclosure: Some Policy-Making Directions

Under which of the following circumstances should rigid uniformity be used?

The SEC requires disclose of both retrospective and prospective information in the Management's Discussion and Analysis section of the annual report.

Which of the following is not listed by Fields, Lys, and Vincent as a possible reason underlying management choice?

Under which of the following circumstances should finite uniformity be used?

Which of the following represents the approach to interim reporting favored by APB Opinion No. 28?

Accounting for inventory and cost of goods sold and for depreciation is an example of:

Viewing each interim period as a separate period standing on its own is called:

How does the concept of uniformity relate to comparability in the accounting literature?

Improving comparability may lessen relevance or reliability.

Since the 1970s, the SEC appears to have shifted its emphasis toward informative disclosure rather than protective disclosure.

Circumstantial variables are environmental conditions that possess which of the following qualities?

Which of the following is a provision of SFAS No. 131?

From a theoretical standpoint, which of the following represents the approach to interim reporting with the most validity?

Signalling theory appears to be inconsistent with the advocacy of greater disclosure.

Flexibility is an approach to the uniformity problem.

What is meant by differential disclosure? Identify the three differential disclosure proposals discussed in the text.

Relevant circumstances are an important aspect of the uniformity issue.

An organized disclosure policy that includes "bad news" is beneficial to all parties because uncertainty about the firm is reduced.

Lev advocated restricting disclosures to "good news" items only.

Management disclosures in the face of a major earnings surprise may take the form of conference calls with analyst or public announcements via news services.

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

Development of Institutional Structure of Financial Accounting

The Economics of Financial Reporting Regulation

Postulates, Principles, and Concepts

The Search for Objectives

The Fasbs Conceptual Framework

Usefulness of Accounting Information to Investors and Creditors

International Accounting

The Balance Sheet

The Income Statement

Statement of Cash Flows

Income Taxes and Financial Accounting

Pensions and Other Postretirement Benefits

Leases

Intercorporate Equity Investments

Filters