Question 1

There is a conflict between timeliness and the other aspects of relevance.

Accepted Answer

A) True 
 B)False

Question 2

The indirect costs of information pertain to gathering, preparation, and dissemination of information.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following concepts was referred to as a convention in SFAC No. 2?

Accepted Answer

A)  Consistency 
B)  Materiality 
C)  Comparability 
D)  Conservatism 
A)  Consistency 
B)  Materiality 
C)  Comparability 
D)  Conservatism

Question 4

Which of the following is a true statement?

Accepted Answer

A)  SFAC No. 5 makes clear that the concepts discussed in the conceptual framework apply to other means of disclosure in addition to financial statements. 
B)  SFAC No. 5 appears to deny one of the main tenets of the efficient-markets hypothesis, that disclosure outside of the body of financial statements is as effective as disclosure within statements themselves. 
C)  SFAC No. 5 made a clear attempt to resolve the issues of recognition and measurement. 
D)  SFAC No. 5 was successful because it addressed measurement prior to discussing recognition. 
A)  SFAC No. 5 makes clear that the concepts discussed in the conceptual framework apply to other means of disclosure in addition to financial statements. 
B)  SFAC No. 5 appears to deny one of the main tenets of the efficient-markets hypothesis, that disclosure outside of the body of financial statements is as effective as disclosure within statements themselves. 
C)  SFAC No. 5 made a clear attempt to resolve the issues of recognition and measurement. 
D)  SFAC No. 5 was successful because it addressed measurement prior to discussing recognition.

Question 5

The quality of being capable of "making a difference in a decision by helping users to form predictions about the outcomes of past, present, and future events or to confirm or correct expectations" is referred to in the conceptual framework as:

Accepted Answer

A)  Reliability. 
B)  Relevance. 
C)  Representational faithfulness. 
D)  Understandability. 
A)  Reliability. 
B)  Relevance. 
C)  Representational faithfulness. 
D)  Understandability.

Question 6

Which statement in the conceptual framework is concerned with the objectives of business financial reporting? Note that SFAC 8 replaces this SFAC.

Accepted Answer

A)  SFAC No. 1 
B)  SFAC No. 2 
C)  SFAC No. 3 
D)  SFAC No. 5 
A)  SFAC No. 1 
B)  SFAC No. 2 
C)  SFAC No. 3 
D)  SFAC No. 5

Question 7

Which of the following is not true regarding the FASB's conceptual framework?

Accepted Answer

A)  It is supposed to embody a system of interrelated objectives. 
B)  It is an attempt to provide a metatheoretical structure for financial accounting. 
C)  It establishes generally accepted accounting principles. 
D)  It includes seven statements of financial accounting concepts. 
A)  It is supposed to embody a system of interrelated objectives. 
B)  It is an attempt to provide a metatheoretical structure for financial accounting. 
C)  It establishes generally accepted accounting principles. 
D)  It includes seven statements of financial accounting concepts.

Question 8

Timeliness is an enhancing qualitative characteristic of information about economic phenomenon.

Accepted Answer

A) True 
 B)False

Question 9

SFAC No. 1 maintains that financial statements should be geared toward specific needs of particular user groups.

Accepted Answer

A) True 
 B)False

Question 10

Which qualitative characteristic pertains wholly to the attitude of board members as opposed to being more directly concerned with specific aspects of information contained in the financial statements?

Accepted Answer

A)  Representational faithfulness 
B)  Verifiability 
C)  Consistency 
D)  Neutrality 
A)  Representational faithfulness 
B)  Verifiability 
C)  Consistency 
D)  Neutrality

Question 11

SFAC No. 8 replaces

Accepted Answer

A)  SFAC No. 1 
B)  SFAC No. 2 
C)  SFAC No. 3 
D)  SFAC No. 1 and 2. 
A)  SFAC No. 1 
B)  SFAC No. 2 
C)  SFAC No. 3 
D)  SFAC No. 1 and 2.

Question 12

Which of the following is a true statement regarding feedback value?

Accepted Answer

A)  It concerns confirming or correcting decision makers' earlier expectations. 
B)  It refers to assessing where the firm presently stands. 
C)  It is closely related to accountability. 
D)  All of the above 
A)  It concerns confirming or correcting decision makers' earlier expectations. 
B)  It refers to assessing where the firm presently stands. 
C)  It is closely related to accountability. 
D)  All of the above

Question 13

SFAC No. 5 makes clear that the concepts discussed in the conceptual framework apply to other means of disclosure in addition to financial statements.

Accepted Answer

A) True 
 B)False

Question 14

SFAC No. 5 appears to deny one of the main tenets of the efficient-markets hypothesis.

Accepted Answer

A) True 
 B)False

Question 15

Explain the main key points regarding asset and liability measurement made in SFAC No. 7.

Accepted Answer

The most important point about asset mea

Question 16

The quality of understandability is a characteristic influenced by both users and preparers of accounting information.

Accepted Answer

A) True 
 B)False

Question 17

The degree of consensus among measurers is referred to in the conceptual framework as:

Accepted Answer

A)  Reliability. 
B)  Relevance. 
C)  Representational faithfulness. 
D)  Understandability. 
A)  Reliability. 
B)  Relevance. 
C)  Representational faithfulness. 
D)  Understandability.

Question 18

Pre-SFAC No. 8, the three components of reliability are:

Accepted Answer

A)  Predictive value, feedback value, timeliness. 
B)  Verifiability, neutrality, representational faithfulness. 
C)  Verifiability, predictive value, feedback value. 
D)  Relevance, comparability, materiality. 
A)  Predictive value, feedback value, timeliness. 
B)  Verifiability, neutrality, representational faithfulness. 
C)  Verifiability, predictive value, feedback value. 
D)  Relevance, comparability, materiality.

Question 19

Which of the following is not part of the conceptual framework?

Accepted Answer

A)  Conservatism 
B)  Economic consequences 
C)  Consistency 
D)  None of the above are in the conceptual framework 
A)  Conservatism 
B)  Economic consequences 
C)  Consistency 
D)  None of the above are in the conceptual framework

Question 20

The jurisprudential view of the FASB is concerned with the theory embodied in the conceptual framework.

Accepted Answer

A) True 
 B)False

There is a conflict between timeliness and the other aspects of relevance.

The indirect costs of information pertain to gathering, preparation, and dissemination of information.

Which of the following concepts was referred to as a convention in SFAC No. 2?

Which of the following is a true statement?

The quality of being capable of "making a difference in a decision by helping users to form predictions about the outcomes of past, present, and future events or to confirm or correct expectations" is referred to in the conceptual framework as:

Which statement in the conceptual framework is concerned with the objectives of business financial reporting? Note that SFAC 8 replaces this SFAC.

Which of the following is not true regarding the FASB's conceptual framework?

Timeliness is an enhancing qualitative characteristic of information about economic phenomenon.

SFAC No. 1 maintains that financial statements should be geared toward specific needs of particular user groups.

Which qualitative characteristic pertains wholly to the attitude of board members as opposed to being more directly concerned with specific aspects of information contained in the financial statements?

SFAC No. 8 replaces

Which of the following is a true statement regarding feedback value?

SFAC No. 5 makes clear that the concepts discussed in the conceptual framework apply to other means of disclosure in addition to financial statements.

SFAC No. 5 appears to deny one of the main tenets of the efficient-markets hypothesis.

Explain the main key points regarding asset and liability measurement made in SFAC No. 7.

The quality of understandability is a characteristic influenced by both users and preparers of accounting information.

The degree of consensus among measurers is referred to in the conceptual framework as:

Pre-SFAC No. 8, the three components of reliability are:

Which of the following is not part of the conceptual framework?

The jurisprudential view of the FASB is concerned with the theory embodied in the conceptual framework.

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

Usefulness of Accounting Information to Investors and Creditors

Uniformity and Disclosure: Some Policy Making Directions

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 7: The Fasbs Conceptual Framework

There is a conflict between timeliness and the other aspects of relevance.

The indirect costs of information pertain to gathering, preparation, and dissemination of information.

Which of the following concepts was referred to as a convention in SFAC No. 2?

Which of the following is a true statement?

The quality of being capable of "making a difference in a decision by helping users to form predictions about the outcomes of past, present, and future events or to confirm or correct expectations" is referred to in the conceptual framework as:

Which statement in the conceptual framework is concerned with the objectives of business financial reporting? Note that SFAC 8 replaces this SFAC.

Which of the following is not true regarding the FASB's conceptual framework?

Timeliness is an enhancing qualitative characteristic of information about economic phenomenon.

SFAC No. 1 maintains that financial statements should be geared toward specific needs of particular user groups.

Which qualitative characteristic pertains wholly to the attitude of board members as opposed to being more directly concerned with specific aspects of information contained in the financial statements?

SFAC No. 8 replaces

Which of the following is a true statement regarding feedback value?

SFAC No. 5 makes clear that the concepts discussed in the conceptual framework apply to other means of disclosure in addition to financial statements.

SFAC No. 5 appears to deny one of the main tenets of the efficient-markets hypothesis.

Explain the main key points regarding asset and liability measurement made in SFAC No. 7.

The quality of understandability is a characteristic influenced by both users and preparers of accounting information.

The degree of consensus among measurers is referred to in the conceptual framework as:

Pre-SFAC No. 8, the three components of reliability are:

Which of the following is not part of the conceptual framework?

The jurisprudential view of the FASB is concerned with the theory embodied in the conceptual framework.

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

Usefulness of Accounting Information to Investors and Creditors

Uniformity and Disclosure: Some Policy Making Directions

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