Question 1

Which of the following is a true statement?

Accepted Answer

A) Transactions are events that may be either external or internal to an enterprise. 
B) Events that are internal to the firm do not require entries in the firm's accounts. 
C) Transactions are economic or financial events that may or may not be recorded in the firm's accounts. 
D) "Simple events" do not have any significant economic variables that lead to essentially different recording. 
A) Transactions are events that may be either external or internal to an enterprise. 
B) Events that are internal to the firm do not require entries in the firm's accounts. 
C) Transactions are economic or financial events that may or may not be recorded in the firm's accounts. 
D) "Simple events" do not have any significant economic variables that lead to essentially different recording.

Question 2

The term "present magnitudes" refers to:

Accepted Answer

A) conditions known at the time of an event. 
B) conditions known only at a later date. 
C) events that will significantly affect the financial statements. 
D) none of the above. 
A) conditions known at the time of an event. 
B) conditions known only at a later date. 
C) events that will significantly affect the financial statements. 
D) none of the above.

Question 3

Finite uniformity should always be used in accounting for complex events.

Accepted Answer

A) True 
 B)False

Question 4

Because events that are internal to the firm are not considered "transactions," they do not require entries in the firm's accounts.

Accepted Answer

A) True 
 B)False

Question 5

The treatment of loss contingencies required in SFAS No. 5 is an example of:

Accepted Answer

A) elastic uniformity. 
B) conservatism. 
C) flexible uniformity. 
D) rigid uniformity. 
A) elastic uniformity. 
B) conservatism. 
C) flexible uniformity. 
D) rigid uniformity.

Question 6

Environmental conditions are elements beyond managerial control.

Accepted Answer

A) True 
 B)False

Question 7

Rigid uniformity has been formulated as an alternative to finite uniformity.

Accepted Answer

A) True 
 B)False

Question 8

What is meant by relevant circumstances? Describe the two types of relevant circumstances.

Accepted Answer

Relevant circumstances are economically

Question 9

Minimizing reported income would not be a motive guiding the selection of accounting methods.

Accepted Answer

A) True 
 B)False

Question 10

Future contingencies that are allocations do not have real information content for financial statement users.

Accepted Answer

A) True 
 B)False

Question 11

The determination of whether a lease is a capital or operating lease is an example of:

Accepted Answer

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

Question 12

Which of the following terms represents the two general types of relevant circumstances?

Accepted Answer

A) Present circumstances and future contingencies 
B) Present conditions and future contingencies 
C) Present magnitudes and future conditions 
D) Present magnitudes and future contingencies 
A) Present circumstances and future contingencies 
B) Present conditions and future contingencies 
C) Present magnitudes and future conditions 
D) Present magnitudes and future contingencies

Question 13

Prescribing one method for generally similar transactions even though relevant circumstances may be present is referred to as:

Accepted Answer

A) finite uniformity. 
B) rigid uniformity. 
C) inflexible uniformity. 
D) measurable uniformity. 
A) finite uniformity. 
B) rigid uniformity. 
C) inflexible uniformity. 
D) measurable uniformity.

Question 14

Flexibility is not often used in generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 15

Protective disclosure and informative disclosure are two types of disclosures as interpreted by the:

Accepted Answer

A) FTC. 
B) FASB. 
C) AICPA. 
D) SEC. 
A) FTC. 
B) FASB. 
C) AICPA. 
D) SEC.

Question 16

What is Regulation FD, and how does it relate to the disclosure of information?

Accepted Answer

The SEC passed Regulation FD in August 2

Question 17

Distinguish between finite uniformity, rigid uniformity, and flexibility. Also, explain when each is appropriately used.

Accepted Answer

@#LAT-DLM& attempts to equate prescribed accountin

Question 18

The concept of uniformity appears to overlap with consistency.

Accepted Answer

A) True 
 B)False

Question 19

Events are economic occurrences that require accounting entries.

Accepted Answer

A) True 
 B)False

Which of the following is a true statement?

The term "present magnitudes" refers to:

Finite uniformity should always be used in accounting for complex events.

Because events that are internal to the firm are not considered "transactions," they do not require entries in the firm's accounts.

The treatment of loss contingencies required in SFAS No. 5 is an example of:

Environmental conditions are elements beyond managerial control.

Rigid uniformity has been formulated as an alternative to finite uniformity.

What is meant by relevant circumstances? Describe the two types of relevant circumstances.

Minimizing reported income would not be a motive guiding the selection of accounting methods.

Future contingencies that are allocations do not have real information content for financial statement users.

The determination of whether a lease is a capital or operating lease is an example of:

Which of the following terms represents the two general types of relevant circumstances?

Prescribing one method for generally similar transactions even though relevant circumstances may be present is referred to as:

Flexibility is not often used in generally accepted accounting principles.

Protective disclosure and informative disclosure are two types of disclosures as interpreted by the:

What is Regulation FD, and how does it relate to the disclosure of information?

Distinguish between finite uniformity, rigid uniformity, and flexibility. Also, explain when each is appropriately used.

The concept of uniformity appears to overlap with consistency.

Events are economic occurrences that require accounting entries.

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

Which of the following is a true statement?

The term "present magnitudes" refers to:

Finite uniformity should always be used in accounting for complex events.

Because events that are internal to the firm are not considered "transactions," they do not require entries in the firm's accounts.

The treatment of loss contingencies required in SFAS No. 5 is an example of:

Environmental conditions are elements beyond managerial control.

Rigid uniformity has been formulated as an alternative to finite uniformity.

What is meant by relevant circumstances? Describe the two types of relevant circumstances.

Minimizing reported income would not be a motive guiding the selection of accounting methods.

Future contingencies that are allocations do not have real information content for financial statement users.

The determination of whether a lease is a capital or operating lease is an example of:

Which of the following terms represents the two general types of relevant circumstances?

Prescribing one method for generally similar transactions even though relevant circumstances may be present is referred to as:

Flexibility is not often used in generally accepted accounting principles.

Protective disclosure and informative disclosure are two types of disclosures as interpreted by the:

What is Regulation FD, and how does it relate to the disclosure of information?

Distinguish between finite uniformity, rigid uniformity, and flexibility. Also, explain when each is appropriately used.

The concept of uniformity appears to overlap with consistency.

Events are economic occurrences that require accounting entries.

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