Question 1

Compute net income for the first year for Tri Fecta.

Accepted Answer

The answer of Compute net income for the first year...

Question 2

Surefeet Corporation changed its inventory valuation method.Which characteristic is jeopardized by this change?

Accepted Answer

A) Comparability. 
B) Representational faithfulness. 
C) Consistency. 
D) Feedback value. 
A) Comparability. 
B) Representational faithfulness. 
C) Consistency. 
D) Feedback value.

Question 3

The FASB is currently the public-sector organization responsible for setting accounting standards in the United States.

Accepted Answer

A) True 
 B)False

Question 4

Determining fair value by calculating the present value of future cash flows is a level 1 type of input.

Accepted Answer

A) True 
 B)False

Question 5

Land was acquired in 2016 for a future building site at a cost of $40,000.The assessed valuation for tax purposes is $27,000,a qualified appraiser placed its value at $48,000,and a recent firm offer for the land was for a cash payment of $46,000.The land should be reported in the financial statements at:

Accepted Answer

A) $40,000. 
B) $27,000. 
C) $46,000. 
D) $48,000. 
A) $40,000. 
B) $27,000. 
C) $46,000. 
D) $48,000.

Question 6

Which of the following is not an identified valuation technique in GAAP regarding fair value measurement?

Accepted Answer

A) Cost approach. 
B) Market approach. 
C) Cost-benefit approach. 
D) Income approach. 
A) Cost approach. 
B) Market approach. 
C) Cost-benefit approach. 
D) Income approach.

Question 7

Under IFRS,the role of the conceptual framework:

Accepted Answer

A) Primarily involves guiding standard setters to make sure that standards are consistent with each other. 
B) Includes serving as a guide for practitioners when a specific standard does not apply. 
C) Is less important than in U.S.GAAP. 
D) Has resulted primarily from a convergence with U.S.GAAP. 
A) Primarily involves guiding standard setters to make sure that standards are consistent with each other. 
B) Includes serving as a guide for practitioners when a specific standard does not apply. 
C) Is less important than in U.S.GAAP. 
D) Has resulted primarily from a convergence with U.S.GAAP.

Question 8

The most recent example of the political process at work in standard-setting is the heated debate that occurred on the issue of:

Accepted Answer

A) Pension plan accounting. 
B) Accounting for postretirement benefits other than pensions. 
C) Accounting for business combinations. 
D) Accounting for stock-based compensation. 
A) Pension plan accounting. 
B) Accounting for postretirement benefits other than pensions. 
C) Accounting for business combinations. 
D) Accounting for stock-based compensation.

Question 9

Enhancing qualitative characteristics of accounting information include each of the following except:

Accepted Answer

A) Timeliness. 
B) Materiality. 
C) Comparability. 
D) Verifiability. 
A) Timeliness. 
B) Materiality. 
C) Comparability. 
D) Verifiability.

Question 10

Gains or losses result,respectively,from the disposition of business assets for greater than,or less than,their book values.

Accepted Answer

A) True 
 B)False

Question 11

Revenue should not be recognized until:

Accepted Answer

A) The seller has transferred goods or services to a customer. 
B) Contracts have been signed and payment has been received. 
C) Work has been performed and customer has been billed. 
D) Collection has been made and warrantees have expired. 
A) The seller has transferred goods or services to a customer. 
B) Contracts have been signed and payment has been received. 
C) Work has been performed and customer has been billed. 
D) Collection has been made and warrantees have expired.

Question 12

The FASB issues accounting standards in the form of:

Accepted Answer

A) Accounting Research Bulletins. 
B) Accounting Standards Updates. 
C) Financial Accounting Standards. 
D) Financial Technical Bulletins. 
A) Accounting Research Bulletins. 
B) Accounting Standards Updates. 
C) Financial Accounting Standards. 
D) Financial Technical Bulletins.

Question 13

Equity is a residual amount representing the owner's interest in the assets of the business.

Accepted Answer

A) True 
 B)False

Question 14

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 15

The enhancing qualitative characteristic of understandability means that information should be understood by:

Accepted Answer

A) Those who are experts in the interpretation of financial information. 
B) Those who have a reasonable understanding of business and economic activities. 
C) Financial analysts. 
D) CPAs. 
A) Those who are experts in the interpretation of financial information. 
B) Those who have a reasonable understanding of business and economic activities. 
C) Financial analysts. 
D) CPAs.

Question 16

The Public Reform and Investor Protection Act of 2002 (Sarbanes-Oxley)changed the entity responsible for setting auditing standards in the United States.

Accepted Answer

A) True 
 B)False

Question 17

Change in equity from nonowner sources is:

Accepted Answer

A) Comprehensive income. 
B) Revenues. 
C) Expenses. 
D) Gains and losses. 
A) Comprehensive income. 
B) Revenues. 
C) Expenses. 
D) Gains and losses.

Question 18

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 19

Porite Company recognizes revenue in the period in which it records an asset for the related account receivable,rather than in the period in which the account receivable is collected in cash.Porite's practice is an example of:

Accepted Answer

A) Cash basis accounting. 
B) Accrual accounting. 
C) The matching principle. 
D) Economic entity. 
A) Cash basis accounting. 
B) Accrual accounting. 
C) The matching principle. 
D) Economic entity.

Question 20

Revenues are inflows or other enhancements of assets or settlements of liabilities from activities that constitute the entity's ongoing operations.

Accepted Answer

A) True 
 B)False

Compute net income for the first year for Tri Fecta.

Surefeet Corporation changed its inventory valuation method.Which characteristic is jeopardized by this change?

The FASB is currently the public-sector organization responsible for setting accounting standards in the United States.

Determining fair value by calculating the present value of future cash flows is a level 1 type of input.

Which of the following is not an identified valuation technique in GAAP regarding fair value measurement?

Under IFRS,the role of the conceptual framework:

The most recent example of the political process at work in standard-setting is the heated debate that occurred on the issue of:

Enhancing qualitative characteristics of accounting information include each of the following except:

Gains or losses result,respectively,from the disposition of business assets for greater than,or less than,their book values.

Revenue should not be recognized until:

The FASB issues accounting standards in the form of:

Equity is a residual amount representing the owner's interest in the assets of the business.

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

The enhancing qualitative characteristic of understandability means that information should be understood by:

The Public Reform and Investor Protection Act of 2002 (Sarbanes-Oxley)changed the entity responsible for setting auditing standards in the United States.

Change in equity from nonowner sources is:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Porite Company recognizes revenue in the period in which it records an asset for the related account receivable,rather than in the period in which the account receivable is collected in cash.Porite's practice is an example of:

Revenues are inflows or other enhancements of assets or settlements of liabilities from activities that constitute the entity's ongoing operations.

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters

Exam 1: Environment and Theoretical Structure of Financial Accounting

Compute net income for the first year for Tri Fecta.

Surefeet Corporation changed its inventory valuation method.Which characteristic is jeopardized by this change?

The FASB is currently the public-sector organization responsible for setting accounting standards in the United States.

Determining fair value by calculating the present value of future cash flows is a level 1 type of input.

Which of the following is not an identified valuation technique in GAAP regarding fair value measurement?

Under IFRS,the role of the conceptual framework:

The most recent example of the political process at work in standard-setting is the heated debate that occurred on the issue of:

Enhancing qualitative characteristics of accounting information include each of the following except:

Gains or losses result,respectively,from the disposition of business assets for greater than,or less than,their book values.

Revenue should not be recognized until:

The FASB issues accounting standards in the form of:

Equity is a residual amount representing the owner's interest in the assets of the business.

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

The enhancing qualitative characteristic of understandability means that information should be understood by:

The Public Reform and Investor Protection Act of 2002 (Sarbanes-Oxley)changed the entity responsible for setting auditing standards in the United States.

Change in equity from nonowner sources is:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the correct number code for the term.

Porite Company recognizes revenue in the period in which it records an asset for the related account receivable,rather than in the period in which the account receivable is collected in cash.Porite's practice is an example of:

Revenues are inflows or other enhancements of assets or settlements of liabilities from activities that constitute the entity's ongoing operations.

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters