Exam 1: Environment and Theoretical Structure of Financial Accounting

The recognition of which of the following expenses exemplifies the application of matching expenses with the revenues they produced?

Compute the cash balance at the end of the first year for Alpaca Corporation.

One of the elements that many believe distinguishes a profession from other occupations is the acceptance of responsibility by its members for the interests of those it serves,which is often articulated in:

Primecoat Corporation could disseminate its annual financial statements two days earlier if it shifted substantial human resources from other operations to the annual report project.Management decided the value of the earlier report was not worth the added commitment of resources.The concept demonstrated is:

What is the EITF and what is its purpose?

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 primary professional organization for those accountants working in industry is the:

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.

External decision makers would not look primarily to financial accounting information to assist them in making decisions on:

Accounting standard-setting has been characterized as:

Mega Loan Company has very stringent credit requirements and,accordingly,has negligible losses from uncollectible accounts.The company's independent accountants did not protest when,contrary to GAAP,the company recorded bad debt expense only when specific accounts were determined to be uncollectible,rather than use an allowance for uncollectible accounts.The concept demonstrated is:

The International Accounting Standards Board:

List and briefly describe the five measurement attributes used commonly in current GAAP.

The asset/liability approach emphasizes matching to determine what assets and liabilities should be reflected on the balance sheet.

List the four financial statements most frequently provided to external users.

Pronouncements issued by the Committee on Accounting Procedures:

The conceptual framework's qualitative characteristic of faithful representation includes:

When there is agreement between a measure or description and the phenomenon it purports to represent,information possesses which characteristic?

The most political issue in the FASB's most recent deliberations and amendments to GAAP on business combinations was:

Net income equals: