Question 1

Generally accepted accounting principles are:

Accepted Answer

A)  optional procedures for recording economic events. 
B)  mandatory rules applied to both financial and management accounting. 
C)  the rules of accounting, prescribed exclusively by Federal regulatory agencies. 
D)  standards of accounting, a material departure from which may result in a qualified opinion issued by an auditor. 
A)  optional procedures for recording economic events. 
B)  mandatory rules applied to both financial and management accounting. 
C)  the rules of accounting, prescribed exclusively by Federal regulatory agencies. 
D)  standards of accounting, a material departure from which may result in a qualified opinion issued by an auditor.

Question 2

The CPA Canada Handbook is the most important primary source of GAAP.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is NOT a primary motivator for maximizing net income?

Accepted Answer

A)  Compliance with debt covenants. 
B)  To positively influence users' assessment of management performance. 
C)  To enhance managers' performance-based compensation. 
D)  To minimize the company's income tax liability. 
A)  Compliance with debt covenants. 
B)  To positively influence users' assessment of management performance. 
C)  To enhance managers' performance-based compensation. 
D)  To minimize the company's income tax liability.

Question 4

The main purpose of financial accounting is to communicate useful financial information to decision-makers both inside and outside of the business organization.

Accepted Answer

A) True 
 B)False

Generally accepted accounting principles are:

The CPA Canada Handbook is the most important primary source of GAAP.

Which of the following is NOT a primary motivator for maximizing net income?

The main purpose of financial accounting is to communicate useful financial information to decision-makers both inside and outside of the business organization.

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Long-Lived Assets

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters

Exam 1: The Framework for Financial Reporting

Generally accepted accounting principles are:

The CPA Canada Handbook is the most important primary source of GAAP.

Which of the following is NOT a primary motivator for maximizing net income?

The main purpose of financial accounting is to communicate useful financial information to decision-makers both inside and outside of the business organization.

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Long-Lived Assets

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters