Question 1

Circumstantial variables are environmental conditions that possess which of the following qualities?

Accepted Answer

A)  Excessive measurement costs 
B)  A high degree of verifiability relative to other accounting methods 
C)  Both a and b 
D)  None of the above 
A)  Excessive measurement costs 
B)  A high degree of verifiability relative to other accounting methods 
C)  Both a and b 
D)  None of the above

Question 2

What is meant by differential disclosure? Identify the three differential disclosure proposals discussed in the text.

Accepted Answer

Differential disclosure as it is in effe

Question 3

The term "present magnitudes" refers to:

Accepted Answer

A)  Conditions known at the time of an event. 
B)  Conditions known only at a later date. 
C)  Events that will significantly affect the financial statements. 
D)  None of the above 
A)  Conditions known at the time of an event. 
B)  Conditions known only at a later date. 
C)  Events that will significantly affect the financial statements. 
D)  None of the above

Question 4

Lev advocated restricting disclosures to "good news" items only.

Accepted Answer

A) True 
 B)False

Question 5

The requirement by SFAS No. 2 that research and development costs be immediately expensed is an example of:

Accepted Answer

A)  Elastic uniformity. 
B)  Finite uniformity. 
C)  Flexible uniformity. 
D)  Rigid uniformity. 
A)  Elastic uniformity. 
B)  Finite uniformity. 
C)  Flexible uniformity. 
D)  Rigid uniformity.

Question 6

Events are economic occurrences that require accounting entries.

Accepted Answer

A) True 
 B)False

Question 7

Where rigid uniformity is in effect, the underlying reasons may be attributable to all but which one of the following factors?

Accepted Answer

A)  A desire for conservatism 
B)  An inability of the standard-setting organization to determine meaningful relevant circumstances 
C)  An attempt to increase representational faithfulness of the measurement 
D)  Recognition of the fact that an allocation is involved 
A)  A desire for conservatism 
B)  An inability of the standard-setting organization to determine meaningful relevant circumstances 
C)  An attempt to increase representational faithfulness of the measurement 
D)  Recognition of the fact that an allocation is involved

Question 8

SFAC No. 5 defines disclosure as:

Accepted Answer

A)  Presentation of information in the financial statements. 
B)  Presentation of information by means other than recognition in the financial statements. 
C)  Recognition of information in the financial statements or footnotes. 
D)  Presentation of information in any source available. 
A)  Presentation of information in the financial statements. 
B)  Presentation of information by means other than recognition in the financial statements. 
C)  Recognition of information in the financial statements or footnotes. 
D)  Presentation of information in any source available.

Question 9

Which of the following is a true statement?

Accepted Answer

A)  Disclosure is concerned with information in the financial statements as well as information in the footnotes, management's discussion and analysis, financial and operating forecasts, and other supplementary communications. 
B)  Disclosure is concerned with information in the financial statements only. 
C)  Disclosure is concerned with information in the footnotes only. 
D)  Disclosure is concerned with information in the financial statements and all supplementary communications except financial and operating forecasts. 
A)  Disclosure is concerned with information in the financial statements as well as information in the footnotes, management's discussion and analysis, financial and operating forecasts, and other supplementary communications. 
B)  Disclosure is concerned with information in the financial statements only. 
C)  Disclosure is concerned with information in the footnotes only. 
D)  Disclosure is concerned with information in the financial statements and all supplementary communications except financial and operating forecasts.

Question 10

Rigid uniformity considers relevant circumstances.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the role of management in relevant circumstances.

Accepted Answer

Managerial influence has been regarded a

Question 12

Signalling theory appears to be inconsistent with the advocacy of greater disclosure.

Accepted Answer

A) True 
 B)False

Question 13

Distinguish between finite uniformity, rigid uniformity and flexibility. Also, explain when each is appropriately used.

Accepted Answer

Finite uniformity attempts to equate pre

Question 14

Transactions are economic or financial events that are recorded in the firm's accounts.

Accepted Answer

A) True 
 B)False

Question 15

Viewing each interim period as a separate period standing on its own is called:

Accepted Answer

A)  The integral view. 
B)  The disjointed view. 
C)  The discrete view. 
D)  The linked view. 
A)  The integral view. 
B)  The disjointed view. 
C)  The discrete view. 
D)  The linked view.

Question 16

Relevant circumstances are an important aspect of the uniformity issue.

Accepted Answer

A) True 
 B)False

Question 17

Rigid uniformity has been formulated as an alternative to finite uniformity.

Accepted Answer

A) True 
 B)False

Question 18

Flexibility applies to situations in which there are relevant circumstances and more than one possible accounting method exists.

Accepted Answer

A) True 
 B)False

Circumstantial variables are environmental conditions that possess which of the following qualities?

What is meant by differential disclosure? Identify the three differential disclosure proposals discussed in the text.

The term "present magnitudes" refers to:

Lev advocated restricting disclosures to "good news" items only.

The requirement by SFAS No. 2 that research and development costs be immediately expensed is an example of:

Events are economic occurrences that require accounting entries.

Where rigid uniformity is in effect, the underlying reasons may be attributable to all but which one of the following factors?

SFAC No. 5 defines disclosure as:

Which of the following is a true statement?

Rigid uniformity considers relevant circumstances.

Discuss the role of management in relevant circumstances.

Signalling theory appears to be inconsistent with the advocacy of greater disclosure.

Distinguish between finite uniformity, rigid uniformity and flexibility. Also, explain when each is appropriately used.

Transactions are economic or financial events that are recorded in the firm's accounts.

Viewing each interim period as a separate period standing on its own is called:

Relevant circumstances are an important aspect of the uniformity issue.

Rigid uniformity has been formulated as an alternative to finite uniformity.

Flexibility applies to situations in which there are relevant circumstances and more than one possible accounting method exists.

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

Circumstantial variables are environmental conditions that possess which of the following qualities?

What is meant by differential disclosure? Identify the three differential disclosure proposals discussed in the text.

The term "present magnitudes" refers to:

Lev advocated restricting disclosures to "good news" items only.

The requirement by SFAS No. 2 that research and development costs be immediately expensed is an example of:

Events are economic occurrences that require accounting entries.

Where rigid uniformity is in effect, the underlying reasons may be attributable to all but which one of the following factors?

SFAC No. 5 defines disclosure as:

Which of the following is a true statement?

Rigid uniformity considers relevant circumstances.

Discuss the role of management in relevant circumstances.

Signalling theory appears to be inconsistent with the advocacy of greater disclosure.

Distinguish between finite uniformity, rigid uniformity and flexibility. Also, explain when each is appropriately used.

Transactions are economic or financial events that are recorded in the firm's accounts.

Viewing each interim period as a separate period standing on its own is called:

Relevant circumstances are an important aspect of the uniformity issue.

Rigid uniformity has been formulated as an alternative to finite uniformity.

Flexibility applies to situations in which there are relevant circumstances and more than one possible accounting method exists.

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