Exam 1: Environment and Theoretical Structure of Financial Accounting

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:

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

Listed below are ten organizations followed by a list of phrases that describe or characterize the organizations. Match each phrase with the correct organization. -FASB

The FASB's standard-setting process includes, in the correct order:

The asset/liability approach emphasizes:

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

Recognizing expected losses immediately, but deferring expected gains, is an example of:

The FASB issues accounting standards in the form of:

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 term. -Gain

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 term. -Securities and Exchange Commission

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 term. -Liabilities

Listed below are ten organizations followed by a list of phrases that describe or characterize the organizations. Match each phrase with the correct organization. -IASB

Political pressure never affects the IFRS standard-setting process.

-Compute net income for the first year for Tri Fecta.

What is the value of a company having financial statements audited by an independent auditor?

The main issue in the debate over accounting for employee stock options was:

-Compute Amazon's total liabilities at the end of the year.

Compare net income (loss) for the year to net cash flow from operating activities. Why are these amounts different? Briefly explain.

Which of the following does not apply to secondary markets?

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