Question 1

Flexibility is an approach to the uniformity problem.

Accepted Answer

A) True 
 B)False  True

Question 2

Improving comparability may lessen relevance or reliability.

Accepted Answer

A) True 
 B)False  True

Question 3

An organized disclosure policy that includes "bad news" is beneficial to all parties because uncertainty about the firm is reduced.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following represents the principal theoretical issue underlying quarterly data?

Accepted Answer

A)  Whether an interim period should be viewed as a separate period standing on its own 
B)  Whether an interim period report should include balance sheet and cash flow statements 
C)  Whether quarterly earnings should be disaggregated by segments in terms of revenues, profit or loss, and segment assets 
D)  Whether interim reports should include income statement data and basic and fully diluted earnings per share numbers 
A)  Whether an interim period should be viewed as a separate period standing on its own 
B)  Whether an interim period report should include balance sheet and cash flow statements 
C)  Whether quarterly earnings should be disaggregated by segments in terms of revenues, profit or loss, and segment assets 
D)  Whether interim reports should include income statement data and basic and fully diluted earnings per share numbers

Question 5

What is Regulation FD, and how does it relate to the disclosure of information?

Accepted Answer

The SEC passed Regulation FD in August 2

Question 6

Management disclosures in the face of a major earnings surprise may take the form of conference calls with analyst or public announcements via news services.

Accepted Answer

A) True 
 B)False

Question 7

Whenever possible, flexibility should be used in formulating accounting policy.

Accepted Answer

A) True 
 B)False

Question 8

An event, as defined in SFAC No. 6 is, "a happening of consequence to an entity."

Accepted Answer

A) True 
 B)False

Question 9

Because events that are internal to the firm are not considered "transactions," they do not require entries in the firm's accounts.

Accepted Answer

A) True 
 B)False

Question 10

Protective disclosure and informative disclosure are two types of disclosures as interpreted by the:

Accepted Answer

A)  FTC. 
B)  FASB. 
C)  AICPA. 
D)  SEC. 
A)  FTC. 
B)  FASB. 
C)  AICPA. 
D)  SEC.

Question 11

Which of the following is a true statement?

Accepted Answer

A)  Finite uniformity should be more representationally faithful than rigid uniformity. 
B)  Finite uniformity should be more verifiable than rigid uniformity. 
C)  Rigid uniformity is more relevant than finite uniformity. 
D)  Rigid uniformity can be obtained only at a greater cost that finite uniformity. 
A)  Finite uniformity should be more representationally faithful than rigid uniformity. 
B)  Finite uniformity should be more verifiable than rigid uniformity. 
C)  Rigid uniformity is more relevant than finite uniformity. 
D)  Rigid uniformity can be obtained only at a greater cost that finite uniformity.

Question 12

Flexibility applies to which of the following situations?

Accepted Answer

A)  Situations in which there are relevant circumstances and more than one possible accounting method exists 
B)  Situations in which there are relevant circumstances but only one possible accounting method exists 
C)  Situations in which there are no observable relevant circumstances and more than one possible accounting method exists 
D)  All of the above 
A)  Situations in which there are relevant circumstances and more than one possible accounting method exists 
B)  Situations in which there are relevant circumstances but only one possible accounting method exists 
C)  Situations in which there are no observable relevant circumstances and more than one possible accounting method exists 
D)  All of the above

Question 13

What is meant by relevant circumstances? Describe the two types of relevant circumstances.

Accepted Answer

Relevant circumstances are economically

Question 14

Which of the following is not a true statement?

Accepted Answer

A)  Comparability refers to accounting for similar transactions similarly and different circumstances differently. 
B)  Comparability refers to comparing alternatives in order to make a decision. 
C)  Comparability is an inherent quality of accounting numbers in the same sense that relevance and reliability are. 
D)  Uniformity influences comparability. 
A)  Comparability refers to accounting for similar transactions similarly and different circumstances differently. 
B)  Comparability refers to comparing alternatives in order to make a decision. 
C)  Comparability is an inherent quality of accounting numbers in the same sense that relevance and reliability are. 
D)  Uniformity influences comparability.

Question 15

The system of disclosure largely in effect today is called:

Accepted Answer

A)  Selective disclosure. 
B)  Conventional disclosure. 
C)  Differential disclosure. 
D)  Standard disclosure. 
A)  Selective disclosure. 
B)  Conventional disclosure. 
C)  Differential disclosure. 
D)  Standard disclosure.

Question 16

How has the FASB (and the SEC) addressed the contention that small firms incur significantly higher costs than large ones in carrying out complex accounting standards or disclosure requirements?

Accepted Answer

The FASB specifically considers implicat

Question 17

Which of the following represents the approach to interim reporting favored by APB Opinion No. 28?

Accepted Answer

A)  The integral view 
B)  Disjointed view 
C)  The discrete view 
D)  The linked view 
A)  The integral view 
B)  Disjointed view 
C)  The discrete view 
D)  The linked view

Question 18

How does the concept of uniformity relate to comparability in the accounting literature?

Accepted Answer

In the accounting literature, the concep

Question 19

Future contingencies that are allocations do not have real information content for financial statement users.

Accepted Answer

A) True 
 B)False

Question 20

The SEC requires disclose of both retrospective and prospective information in the Management's Discussion and Analysis section of the annual report.

Accepted Answer

A) True 
 B)False

Flexibility is an approach to the uniformity problem.

Improving comparability may lessen relevance or reliability.

An organized disclosure policy that includes "bad news" is beneficial to all parties because uncertainty about the firm is reduced.

Which of the following represents the principal theoretical issue underlying quarterly data?

What is Regulation FD, and how does it relate to the disclosure of information?

Management disclosures in the face of a major earnings surprise may take the form of conference calls with analyst or public announcements via news services.

Whenever possible, flexibility should be used in formulating accounting policy.

An event, as defined in SFAC No. 6 is, "a happening of consequence to an entity."

Because events that are internal to the firm are not considered "transactions," they do not require entries in the firm's accounts.

Protective disclosure and informative disclosure are two types of disclosures as interpreted by the:

Which of the following is a true statement?

Flexibility applies to which of the following situations?

What is meant by relevant circumstances? Describe the two types of relevant circumstances.

Which of the following is not a true statement?

The system of disclosure largely in effect today is called:

How has the FASB (and the SEC) addressed the contention that small firms incur significantly higher costs than large ones in carrying out complex accounting standards or disclosure requirements?

Which of the following represents the approach to interim reporting favored by APB Opinion No. 28?

How does the concept of uniformity relate to comparability in the accounting literature?

Future contingencies that are allocations do not have real information content for financial statement users.

The SEC requires disclose of both retrospective and prospective information in the Management's Discussion and Analysis section of the annual report.

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

Development of Institutional Structure of Financial Accounting

The Economics of Financial Reporting Regulation

Postulates, Principles, and Concepts

The Search for Objectives

The Fasbs Conceptual Framework

Usefulness of Accounting Information to Investors and Creditors

International Accounting

The Balance Sheet

The Income Statement

Statements of Cash Flows

Accounting for Inflation and Changing Prices

Income Taxes and Financial Accounting

Pensions and Other Postretirement Benefits

Leases

Intercorporate Equity Investments

Filters

Exam 9: Uniformity and Disclosure: Some Policy Making Directions

Flexibility is an approach to the uniformity problem.

Improving comparability may lessen relevance or reliability.

An organized disclosure policy that includes "bad news" is beneficial to all parties because uncertainty about the firm is reduced.

Which of the following represents the principal theoretical issue underlying quarterly data?

What is Regulation FD, and how does it relate to the disclosure of information?

Management disclosures in the face of a major earnings surprise may take the form of conference calls with analyst or public announcements via news services.

Whenever possible, flexibility should be used in formulating accounting policy.

An event, as defined in SFAC No. 6 is, "a happening of consequence to an entity."

Because events that are internal to the firm are not considered "transactions," they do not require entries in the firm's accounts.

Protective disclosure and informative disclosure are two types of disclosures as interpreted by the:

Which of the following is a true statement?

Flexibility applies to which of the following situations?

What is meant by relevant circumstances? Describe the two types of relevant circumstances.

Which of the following is not a true statement?

The system of disclosure largely in effect today is called:

How has the FASB (and the SEC) addressed the contention that small firms incur significantly higher costs than large ones in carrying out complex accounting standards or disclosure requirements?

Which of the following represents the approach to interim reporting favored by APB Opinion No. 28?

How does the concept of uniformity relate to comparability in the accounting literature?

Future contingencies that are allocations do not have real information content for financial statement users.

The SEC requires disclose of both retrospective and prospective information in the Management's Discussion and Analysis section of the annual report.

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

Development of Institutional Structure of Financial Accounting

The Economics of Financial Reporting Regulation

Postulates, Principles, and Concepts

The Search for Objectives

The Fasbs Conceptual Framework

Usefulness of Accounting Information to Investors and Creditors

International Accounting

The Balance Sheet

The Income Statement

Statements of Cash Flows

Accounting for Inflation and Changing Prices

Income Taxes and Financial Accounting

Pensions and Other Postretirement Benefits

Leases

Intercorporate Equity Investments

Filters