Exam 6: The Search for Objectives

Which of the following documents was the first to address the issue of user objectives extensively?

According to Sorter and Gans, which of the following describes the intent of the Trueblood Committee Report's second financial statement objective?

APB Statement 4 was in agreement with ASOBAT that financial statements should be oriented toward a limited group of users.

Which of the following statements is not true regarding the Trueblood Committee Report?

The main problem standing in the way of newer information approaches is the perceived competitive disadvantage of making public matters that management would prefer to keep secret.

APB Statement No. 4 acknowledges a conflict between the relevance and reliability objectives.

Which of the following is true regarding the predictive ability of accounting data?

For which of the following areas is broad information applicable to many user groups?

Identify the major contributions of APB Statement 4.

Which of the following documents contained a definition of accounting that fortified the perception of the accountant as a learned professional whose presentation must be accepted by those who do not have his qualifications and credentials?

Respond to the following: a. List some of the possible groups of financial statement users. b. What is meant by "user diversity," and does user diversity create a potential problem?

How did the definition of accounting change from the period before ASOBAT to the issuance of SATTA in 1977?

In the Trueblood Committee Report, the meaning of the word accountability is limited to the functions of safekeeping of assets and ensuring that they are used in accordance with investors' purposes.

Which of the following is not a problem of APB Statement 4 mentioned in the text?

Which of the following documents first stated that users of financial statements should be knowledgeable and should understand the characteristics and limitations of financial statements?

Large parts of APB Statement 4 are restatements of the conventional wisdom of the time.

Which of the following documents expressed the opinion that a choice among accounting valuation systems could not be made because of the diversity of users?

The purpose of SATTA was to provide a survey of the current financial accounting literature and a statement of where the profession stood relative to accounting theory.

Identify and explain the two primary objectives of financial statements and the two secondary objectives of financial statements.

According to the Trueblood Committee Report, current values should be reported when they differ significantly from historical costs.