Question 1

The establishment of which of the following groups has resulted in a challenge to the FASB's standard-setting powers?

Accepted Answer

A) The Governmental Accounting Standards Board (GAS
B)  
B) The Emerging Issues Task Force (EITF) 
C) The Accounting Standards Executive Committee (AcSE
C)  
D) All of the above 
A) The Governmental Accounting Standards Board (GAS
B)  
B) The Emerging Issues Task Force (EITF) 
C) The Accounting Standards Executive Committee (AcSE
C)  
D) All of the above

Question 2

Which of the following factors led to significant changes in accounting practices?

Accepted Answer

A) The Great Depression of 1929 
B) The election of Franklin D. Roosevelt to the presidency in 1932 
C) The enactment of the New Deal legislation 
D) All of the above 
A) The Great Depression of 1929 
B) The election of Franklin D. Roosevelt to the presidency in 1932 
C) The enactment of the New Deal legislation 
D) All of the above

Question 3

Which of the following is $\underline{NOT}$ true regarding the passage of the Sarbanes-Oxley (SOX) Act?

Accepted Answer

A) SOX more clearly defined auditor independence. 
B) SOX was intended to erode public confidence in the accounting profession due to recent scandals. 
C) SOX replaced peer review with inspection by the PCAOB. 
D) SOX implementation became the immediate focus of public companies and CPA firms. 
A) SOX more clearly defined auditor independence. 
B) SOX was intended to erode public confidence in the accounting profession due to recent scandals. 
C) SOX replaced peer review with inspection by the PCAOB. 
D) SOX implementation became the immediate focus of public companies and CPA firms.

Question 4

In which of the following ways did the charge to the Financial Accounting Standards Board (FASB) differ from that given to the Accounting Principles Board (APB)?

Accepted Answer

A) The FASB was to establish standards of financial accounting and reporting in the most efficient and complete manner possible. 
B) The FASB was to work toward standard setting with a two-pronged approach. 
C) The FASB was expected to stipulate principles of accounting as an underlying framework. 
D) The accounting standards established by the FASB were to be advisory rather than mandatory. 
A) The FASB was to establish standards of financial accounting and reporting in the most efficient and complete manner possible. 
B) The FASB was to work toward standard setting with a two-pronged approach. 
C) The FASB was expected to stipulate principles of accounting as an underlying framework. 
D) The accounting standards established by the FASB were to be advisory rather than mandatory.

Question 5

Major complaints aimed at the FASB's standard setting process include:

Accepted Answer

A) the cost of preparing standards is too high. 
B) some standards are very difficult to understand. 
C) both a and b 
D) none of the above 
A) the cost of preparing standards is too high. 
B) some standards are very difficult to understand. 
C) both a and b 
D) none of the above

Question 6

An important role of the AICPA is to curb "shopping for accounting principles."

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not true regarding Accounting Series Release No. 4?

Accepted Answer

A) It stated that financial statements filed with the SEC and prepared in accordance with accounting principles for which there is no substantial authoritative support would be presumed to be misleading. 
B) It implied that the SEC might in the future determine acceptable accounting practices and mandate methods to be used in reports filed with it. 
C) It established an authoritative body for the development of accounting standards. 
D) It indicated that the SEC was growing impatient with the accounting profession. 
A) It stated that financial statements filed with the SEC and prepared in accordance with accounting principles for which there is no substantial authoritative support would be presumed to be misleading. 
B) It implied that the SEC might in the future determine acceptable accounting practices and mandate methods to be used in reports filed with it. 
C) It established an authoritative body for the development of accounting standards. 
D) It indicated that the SEC was growing impatient with the accounting profession.

Question 8

Which of the following was an accomplishment of the American Association of Public Accountants?

Accepted Answer

A) The passage of a law in 1896 that created the professional designation of "Certified Public Accountant" 
B) The founding of The Journal of Accountancy in 1905 
C) The development of a list of terms and definitions in 1915 
D) All of the above 
A) The passage of a law in 1896 that created the professional designation of "Certified Public Accountant" 
B) The founding of The Journal of Accountancy in 1905 
C) The development of a list of terms and definitions in 1915 
D) All of the above

Question 9

Congress has recently been concerned with the laxity of auditors in detecting and disclosing fraud.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is $\underline{NOT}$ true regarding the PCAOB?

Accepted Answer

A) The PCAOB is a governmental sector regulatory body. 
B) The PCAOB is overseen by the SEC. 
C) The PCAOB was established by the Sarbanes-Oxley Act. 
D) The PCAOB has authority to set auditing standards. 
A) The PCAOB is a governmental sector regulatory body. 
B) The PCAOB is overseen by the SEC. 
C) The PCAOB was established by the Sarbanes-Oxley Act. 
D) The PCAOB has authority to set auditing standards.

Question 11

The importance of the auditing function relative to the management consulting function is declining in major auditing firms.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following represented the first formal attempt to develop "generally accepted accounting principles"?

Accepted Answer

A) "Approved Methods for the Preparation of Balance Sheet Statements" in 1918 
B) "Five broad accounting principles" in 1932 
C) Accounting Research Bulletin (AR
B)  43 
D) The FASB's conceptual framework project 
A) "Approved Methods for the Preparation of Balance Sheet Statements" in 1918 
B) "Five broad accounting principles" in 1932 
C) Accounting Research Bulletin (AR
B)  43 
D) The FASB's conceptual framework project

Question 13

Discuss the steps in the accounting standard-setting process and explain why it may not be capable of dealing with the complex environment of the 2000s and beyond.

Accepted Answer

The standard-setting procedure starts wi

Question 14

In which of the following ways has the Financial Executives Institute (FEI) become involved in the accounting standard-setting process?

Accepted Answer

A) By funding research projects in accounting and related areas 
B) By reviewing FASB discussion memorandums and exposure drafts and communicating an official position to FASB. 
C) By participating in FASB public hearings 
D) All of the above 
A) By funding research projects in accounting and related areas 
B) By reviewing FASB discussion memorandums and exposure drafts and communicating an official position to FASB. 
C) By participating in FASB public hearings 
D) All of the above

Question 15

The FASB has made more extensive use of research than did its predecessors.

Accepted Answer

A) True 
 B)False

Question 16

The International Accounting Standards Board's role in establishing standards has decreased significantly since 2002.

Accepted Answer

A) True 
 B)False

Question 17

The American Accounting Association was originally called the American Society of Certified Public Accountants.

Accepted Answer

A) True 
 B)False

Question 18

The Journal of Accountancy was founded by the American Association of Public Accountants in 1905.

Accepted Answer

A) True 
 B)False

Question 19

The Committee on Accounting Procedures (CAP) was immediately succeeded by:

Accepted Answer

A) the Financial Accounting Standards Board (FAS
B) . 
B) the Accounting Principles Board (AP
B) . 
C) the Accounting Research Board (AR
B) . 
D) the Financial Accounting Foundation (FAF). 
A) the Financial Accounting Standards Board (FAS
B) . 
B) the Accounting Principles Board (AP
B) . 
C) the Accounting Research Board (AR
B) . 
D) the Financial Accounting Foundation (FAF).

Question 20

The Accounting Standards Executive Committee of the AICPA (ASEC) and the Emerging Issues Task Force (EITF) were established to solve the problems of particular industries as well as narrow technical issues.

Accepted Answer

A) True 
 B)False

The establishment of which of the following groups has resulted in a challenge to the FASB's standard-setting powers?

Which of the following factors led to significant changes in accounting practices?

Which of the following is $\underline{NOT}$ true regarding the passage of the Sarbanes-Oxley (SOX) Act?

In which of the following ways did the charge to the Financial Accounting Standards Board (FASB) differ from that given to the Accounting Principles Board (APB)?

Major complaints aimed at the FASB's standard setting process include:

An important role of the AICPA is to curb "shopping for accounting principles."

Which of the following is not true regarding Accounting Series Release No. 4?

Which of the following was an accomplishment of the American Association of Public Accountants?

Congress has recently been concerned with the laxity of auditors in detecting and disclosing fraud.

Which of the following is $\underline{NOT}$ true regarding the PCAOB?

The importance of the auditing function relative to the management consulting function is declining in major auditing firms.

Which of the following represented the first formal attempt to develop "generally accepted accounting principles"?

Discuss the steps in the accounting standard-setting process and explain why it may not be capable of dealing with the complex environment of the 2000s and beyond.

In which of the following ways has the Financial Executives Institute (FEI) become involved in the accounting standard-setting process?

The FASB has made more extensive use of research than did its predecessors.

The International Accounting Standards Board's role in establishing standards has decreased significantly since 2002.

The American Accounting Association was originally called the American Society of Certified Public Accountants.

The Journal of Accountancy was founded by the American Association of Public Accountants in 1905.

The Committee on Accounting Procedures (CAP) was immediately succeeded by:

The Accounting Standards Executive Committee of the AICPA (ASEC) and the Emerging Issues Task Force (EITF) were established to solve the problems of particular industries as well as narrow technical issues.

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

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

Uniformity and Disclosure: Some Policy-Making Directions

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 3: Development of Institutional Structure of Financial Accounting

The establishment of which of the following groups has resulted in a challenge to the FASB's standard-setting powers?

Which of the following factors led to significant changes in accounting practices?

Which of the following is NOT‾\underline{NOT}NOT​ true regarding the passage of the Sarbanes-Oxley (SOX) Act?

In which of the following ways did the charge to the Financial Accounting Standards Board (FASB) differ from that given to the Accounting Principles Board (APB)?

Major complaints aimed at the FASB's standard setting process include:

An important role of the AICPA is to curb "shopping for accounting principles."

Which of the following is not true regarding Accounting Series Release No. 4?

Which of the following was an accomplishment of the American Association of Public Accountants?

Congress has recently been concerned with the laxity of auditors in detecting and disclosing fraud.

Which of the following is NOT‾\underline{NOT}NOT​ true regarding the PCAOB?

The importance of the auditing function relative to the management consulting function is declining in major auditing firms.

Which of the following represented the first formal attempt to develop "generally accepted accounting principles"?

Discuss the steps in the accounting standard-setting process and explain why it may not be capable of dealing with the complex environment of the 2000s and beyond.

In which of the following ways has the Financial Executives Institute (FEI) become involved in the accounting standard-setting process?

The FASB has made more extensive use of research than did its predecessors.

The International Accounting Standards Board's role in establishing standards has decreased significantly since 2002.

The American Accounting Association was originally called the American Society of Certified Public Accountants.

The Journal of Accountancy was founded by the American Association of Public Accountants in 1905.

The Committee on Accounting Procedures (CAP) was immediately succeeded by:

The Accounting Standards Executive Committee of the AICPA (ASEC) and the Emerging Issues Task Force (EITF) were established to solve the problems of particular industries as well as narrow technical issues.

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

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

Uniformity and Disclosure: Some Policy-Making Directions

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

Which of the following is $\underline{NOT}$ true regarding the passage of the Sarbanes-Oxley (SOX) Act?

Which of the following is $\underline{NOT}$ true regarding the PCAOB?