Question 1

The Committee on Accounting Procedures (CAP) was immediately succeeded by:

Accepted Answer

A)  The Financial Accounting Standards Board (FAS
B) . 
B)  The Accounting Principles Board (AP
B) . 
C)  The Accounting Research Board (AR
B) . 
D)  The Financial Accounting Foundation (FAF). 
A)  The Financial Accounting Standards Board (FAS
B) . 
B)  The Accounting Principles Board (AP
B) . 
C)  The Accounting Research Board (AR
B) . 
D)  The Financial Accounting Foundation (FAF).

Question 2

The International Accounting Standards Board's role in establishing standards has decreased significantly since 2002.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following bodies was created to deal with municipal accounting issues?

Accepted Answer

A)  GASB 
B)  FASB 
C)  FAF 
D)  EITF 
A)  GASB 
B)  FASB 
C)  FAF 
D)  EITF

Question 4

The AICPA has developed an electronic filing of financial data called EDGAR.

Accepted Answer

A) True 
 B)False

Question 5

The SEC was created by Congress to replace the AICPA's standard-setting group.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following are true regarding the Financial Accounting Standards Board (FASB)?

Accepted Answer

A)  The FASB includes ten members, each serving a term of three years. 
B)  Each member of the FASB must be a Certified Public Accountant. 
C)  There must be no conflict between the FASB members' private interest and the public interest. 
D)  All of the above are true. 
A)  The FASB includes ten members, each serving a term of three years. 
B)  Each member of the FASB must be a Certified Public Accountant. 
C)  There must be no conflict between the FASB members' private interest and the public interest. 
D)  All of the above are true.

Question 7

The liability concept that can result in one party having to pay for more than its proportionate share of damages is called:

Accepted Answer

A)  Proportionate liability. 
B)  Compensatory liability. 
C)  Joint and several liability. 
D)  Punitive liability. 
A)  Proportionate liability. 
B)  Compensatory liability. 
C)  Joint and several liability. 
D)  Punitive liability.

Question 8

In which of the following ways did the charge to the Financial Accounting Standards Board (FASB) differ from that given to the Accounting Principles Board (APB)?

Accepted Answer

A)  The FASB was to establish standards of financial accounting and reporting in the most efficient and complete manner possible. 
B)  The FASB was to work toward standard setting with a two-pronged approach. 
C)  The FASB was expected to stipulate principles of accounting as an underlying framework. 
D)  The accounting standards established by the FASB were to be advisory rather than mandatory. 
A)  The FASB was to establish standards of financial accounting and reporting in the most efficient and complete manner possible. 
B)  The FASB was to work toward standard setting with a two-pronged approach. 
C)  The FASB was expected to stipulate principles of accounting as an underlying framework. 
D)  The accounting standards established by the FASB were to be advisory rather than mandatory.

Question 9

The liability concept that restricts liability to each defendant's share of the damages based upon the judge or jury's assessment of their share of the damages is called:

Accepted Answer

A)  Proportionate liability. 
B)  Compensatory liability. 
C)  Joint and several liability. 
D)  Disproportionate liability. 
A)  Proportionate liability. 
B)  Compensatory liability. 
C)  Joint and several liability. 
D)  Disproportionate liability.

Question 10

In 1918, the American Institute of Accountants (AIA) worked with which of the following organizations to publish minimum standards for conducting a balance sheet audit?

Accepted Answer

A)  The Federal Trade Commission (FT
C)  
B)  The Securities and Exchange Commission (SE
C)  
C)  The American Society of Certified Public Accountants 
D)  The New York Stock Exchange (NYS
E)  
A)  The Federal Trade Commission (FT
C)  
B)  The Securities and Exchange Commission (SE
C)  
C)  The American Society of Certified Public Accountants 
D)  The New York Stock Exchange (NYS
E)

Question 11

Which former Special Prosecutor attempted to have the Sarbanes-Oxley Act of 2002 ruled to be unconstitutional?

Accepted Answer

A)  John G. Roberts 
B)  Ruth Bader Ginsberg 
C)  James Patterson 
D)  Kenneth W. Starr 
A)  John G. Roberts 
B)  Ruth Bader Ginsberg 
C)  James Patterson 
D)  Kenneth W. Starr

Question 12

Congress has recently been concerned with the laxity of auditors in detecting and disclosing fraud.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following events resulted in shareholders' beginning to question whether accounting and reporting practices were adequate to assess investments?

Accepted Answer

A)  The stock market crash of 1929 
B)  The federal government's lump-sum payments for the retirement of Liberty Bonds 
C)  The creation of the SEC in 1934 
D)  None of the above 
A)  The stock market crash of 1929 
B)  The federal government's lump-sum payments for the retirement of Liberty Bonds 
C)  The creation of the SEC in 1934 
D)  None of the above

Question 14

Explain how Sarbanes-Oxley of 2002 significantly changes how the FASB will operate in the future.

Accepted Answer

The FASB's funding originally came from

Question 15

Which of the following are characteristics of the FASB?

Accepted Answer

A)  It is part of the AICPA. 
B)  Members are part-time employees of the FASB. 
C)  A member must be a CPA. 
D)  It makes more extensive use of research than its predecessors. 
A)  It is part of the AICPA. 
B)  Members are part-time employees of the FASB. 
C)  A member must be a CPA. 
D)  It makes more extensive use of research than its predecessors.

Question 16

The Committee on Accounting Procedures (CAP) represented the profession's first sustained attempt to develop workable financial accounting rules.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true regarding the Committee on Accounting Procedures (CAP)?

Accepted Answer

A)  It developed a comprehensive statement of accounting principles. 
B)  It adopted a policy of attacking specific problems and recommending preferred methods of accounting when possible. 
C)  It was formed by the SEC in 1936. 
D)  It eliminated the use of alternative accounting practices by establishing an underlying accounting theory. 
A)  It developed a comprehensive statement of accounting principles. 
B)  It adopted a policy of attacking specific problems and recommending preferred methods of accounting when possible. 
C)  It was formed by the SEC in 1936. 
D)  It eliminated the use of alternative accounting practices by establishing an underlying accounting theory.

Question 18

In which of the following ways has the Financial Executives Institute (FEI) become involved in the accounting standard-setting process?

Accepted Answer

A)  By funding research projects in accounting and related areas 
B)  By reviewing FASB discussion memorandums and exposure drafts and communicating an official position to FASB. 
C)  By participating in FASB public hearings 
D)  All of the above 
A)  By funding research projects in accounting and related areas 
B)  By reviewing FASB discussion memorandums and exposure drafts and communicating an official position to FASB. 
C)  By participating in FASB public hearings 
D)  All of the above

Question 19

Major complaints aimed at the FASB's standard setting process include:

Accepted Answer

A)  The cost of preparing standards is too high. 
B)  Some standards are very difficult to understand. 
C)  Both a and b 
D)  None of the above 
A)  The cost of preparing standards is too high. 
B)  Some standards are very difficult to understand. 
C)  Both a and b 
D)  None of the above

Question 20

The accounting standard-setting process begins with which of the following steps?

Accepted Answer

A)  A problem is identified. 
B)  A task force is formed. 
C)  Public hearings are held. 
D)  An exposure draft is issued. 
A)  A problem is identified. 
B)  A task force is formed. 
C)  Public hearings are held. 
D)  An exposure draft is issued.

The Committee on Accounting Procedures (CAP) was immediately succeeded by:

The International Accounting Standards Board's role in establishing standards has decreased significantly since 2002.

Which of the following bodies was created to deal with municipal accounting issues?

The AICPA has developed an electronic filing of financial data called EDGAR.

The SEC was created by Congress to replace the AICPA's standard-setting group.

Which of the following are true regarding the Financial Accounting Standards Board (FASB)?

The liability concept that can result in one party having to pay for more than its proportionate share of damages is called:

In which of the following ways did the charge to the Financial Accounting Standards Board (FASB) differ from that given to the Accounting Principles Board (APB)?

The liability concept that restricts liability to each defendant's share of the damages based upon the judge or jury's assessment of their share of the damages is called:

In 1918, the American Institute of Accountants (AIA) worked with which of the following organizations to publish minimum standards for conducting a balance sheet audit?

Which former Special Prosecutor attempted to have the Sarbanes-Oxley Act of 2002 ruled to be unconstitutional?

Congress has recently been concerned with the laxity of auditors in detecting and disclosing fraud.

Which of the following events resulted in shareholders' beginning to question whether accounting and reporting practices were adequate to assess investments?

Explain how Sarbanes-Oxley of 2002 significantly changes how the FASB will operate in the future.

Which of the following are characteristics of the FASB?

The Committee on Accounting Procedures (CAP) represented the profession's first sustained attempt to develop workable financial accounting rules.

Which of the following is true regarding the Committee on Accounting Procedures (CAP)?

In which of the following ways has the Financial Executives Institute (FEI) become involved in the accounting standard-setting process?

Major complaints aimed at the FASB's standard setting process include:

The accounting standard-setting process begins with which of the following steps?

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

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

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 3: Development of Institutional Structure of Financial Accounting

The Committee on Accounting Procedures (CAP) was immediately succeeded by:

The International Accounting Standards Board's role in establishing standards has decreased significantly since 2002.

Which of the following bodies was created to deal with municipal accounting issues?

The AICPA has developed an electronic filing of financial data called EDGAR.

The SEC was created by Congress to replace the AICPA's standard-setting group.

Which of the following are true regarding the Financial Accounting Standards Board (FASB)?

The liability concept that can result in one party having to pay for more than its proportionate share of damages is called:

In which of the following ways did the charge to the Financial Accounting Standards Board (FASB) differ from that given to the Accounting Principles Board (APB)?

The liability concept that restricts liability to each defendant's share of the damages based upon the judge or jury's assessment of their share of the damages is called:

In 1918, the American Institute of Accountants (AIA) worked with which of the following organizations to publish minimum standards for conducting a balance sheet audit?

Which former Special Prosecutor attempted to have the Sarbanes-Oxley Act of 2002 ruled to be unconstitutional?

Congress has recently been concerned with the laxity of auditors in detecting and disclosing fraud.

Which of the following events resulted in shareholders' beginning to question whether accounting and reporting practices were adequate to assess investments?

Explain how Sarbanes-Oxley of 2002 significantly changes how the FASB will operate in the future.

Which of the following are characteristics of the FASB?

The Committee on Accounting Procedures (CAP) represented the profession's first sustained attempt to develop workable financial accounting rules.

Which of the following is true regarding the Committee on Accounting Procedures (CAP)?

In which of the following ways has the Financial Executives Institute (FEI) become involved in the accounting standard-setting process?

Major complaints aimed at the FASB's standard setting process include:

The accounting standard-setting process begins with which of the following steps?

An Introduction to Accounting Theory

Accounting Theory and Accounting Research

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

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