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. -Comparability

The assumption that in the absence of contrary information a business entity will continue indefinitely is the:

How does GAAP define fair value?

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

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. -Present value

Under IFRS, the role of the conceptual framework:

An important historical reason for the FASB reversing its positions when political pressures occur is:

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

Revenue should not be recognized until:

Identify or define the following terms: periodicity, monetary unit.

Pronouncements issued by the Committee on Accounting Procedures:

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

Which of the following groups is not among the external users for whom financial statements are prepared?

Explain and show an example of how the FASB's conceptual framework is needed in formulating standards on controversial topics.

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

CPAs are licensed by:

The most likely important flaw leading to the demise of the APB was the perceived lack of:

Elements of financial statements do not include:

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. -Distributions to owners

Which of the following best demonstrates the full disclosure principle?