Exam 1: Environment and Theoretical Structure of Financial Accounting

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. -Recognition

The FASB's conceptual framework lists relevance and timeliness as the two fundamental qualitative characteristics of decision-useful information.

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. -Historical cost

Change in equity from nonowner sources is:

Which of the following is not a provision of the Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley)? The Act:

Under federal securities laws, the SEC has the authority to set accounting standards in the United States.

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. -Expenses

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

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

The International Accounting Standards Board:

Fundamental qualitative characteristics of accounting information are:

A rules-based approach to standard-setting stresses professional judgment as opposed to following a list of rules.

Which of the following is not a concern expressed by the SEC regarding IFRS adoption by the U.S.?

The purpose of the conceptual framework is to provide a structure and framework for a consistent set of GAAP.

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. -Cost-effectiveness

Under IFRS, the conceptual framework:

Which of the following Statements of Financial Accounting Concepts defines the 10 elements of financial statements?

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. -Economic entity assumption

Briefly describe how materiality is featured in the conceptual framework.

The primary responsibility for properly applying GAAP when communicating with investors and creditors through financial statements lies with a firm's auditors.