Question 1

Which of the following characteristics does not apply to accounting practices and procedures in the U.S. prior to 1930?

Accepted Answer

A)  They were applied uniformly among companies. 
B)  They were considered confidential by the companies applying them. 
C)  They met the needs of creditors to a greater extent than they met the needs of shareholders. 
D)  They emphasized the disclosure of cash and near-cash resources. 
A)  They were applied uniformly among companies. 
B)  They were considered confidential by the companies applying them. 
C)  They met the needs of creditors to a greater extent than they met the needs of shareholders. 
D)  They emphasized the disclosure of cash and near-cash resources.

Question 2

Which of the following is a true statement?

Accepted Answer

A)  The SEC initially required the accounting profession to consult with it before setting any specific accounting principles. 
B)  The SEC was created by Congress to oversee the accounting profession. 
C)  The SEC was given authority to prescribe the form and content of financial information filed with the SEC. 
D)  The SEC formed the Committee on Accounting Procedure to develop a comprehensive set of accounting principles. 
A)  The SEC initially required the accounting profession to consult with it before setting any specific accounting principles. 
B)  The SEC was created by Congress to oversee the accounting profession. 
C)  The SEC was given authority to prescribe the form and content of financial information filed with the SEC. 
D)  The SEC formed the Committee on Accounting Procedure to develop a comprehensive set of accounting principles.

Question 3

Which of the following professional associations has an interest in the accounting standard-setting process?

Accepted Answer

A)  The AICPA 
B)  The Financial Executives Institute (FEI) 
C)  The American Accounting Association (AA
A)  
D)  All of the above 
A)  The AICPA 
B)  The Financial Executives Institute (FEI) 
C)  The American Accounting Association (AA
A)  
D)  All of the above

Question 4

Describe the controversy surrounding the issuance of APB Opinion No. 2, which addressed the investment tax credit? How did the APB resolve this controversy and what was the resulting effect on the board's authority?

Accepted Answer

The accounting profession was divided on

Question 5

APB Opinions were originally expected to be based on in-depth research studies.

Accepted Answer

A) True 
 B)False

Question 6

The Securities Act of 1933 and the Securities and Exchange Act of 1934 were the first national securities legislations in the United States.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true regarding the Emerging Issues Task Force (EITF)?

Accepted Answer

A)  It has formal authority to establish GAAP. 
B)  Members of this group consist of CEOs of six major corporations and the chief accountant of the SEC. 
C)  It is concerned with highly technical issues, such as financial instruments, which may affect firms in virtually every industry. 
D)  All of the above 
A)  It has formal authority to establish GAAP. 
B)  Members of this group consist of CEOs of six major corporations and the chief accountant of the SEC. 
C)  It is concerned with highly technical issues, such as financial instruments, which may affect firms in virtually every industry. 
D)  All of the above

Question 8

How and why did the AICPA's role change under Sarbanes-Oxley?

Accepted Answer

The AICPA no longer has exclusive author

Question 9

How has the Government Accounting Standards Board (GASB) challenged the FASB's standard setting powers?

Accepted Answer

The GASB establishes another jurisdictio

Question 10

Most of the responsibility for establishing accounting principles has remained with the private sector rather than the SEC.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the steps in the accounting standard-setting process and explain why it may not be capable of dealing with the complex environment of the 2000s and beyond.

Accepted Answer

The standard-setting procedure starts wi

Question 12

Compare and contrast the characteristics of the CAP, APB, and FASB.

Accepted Answer

The FASB is separate from the AICPA, whi

Question 13

Discuss what is meant by "the liability crisis in public accounting." How did the Federal Litigation Reform Act of 1995 address this issue?

Accepted Answer

There has been tremendous pressure to tu

Question 14

The Journal of Accountancy was founded by the American Association of Public Accountants in 1905.

Accepted Answer

A) True 
 B)False

Question 15

Why did accounting and reporting practices in the U.S. prior to 1930 not meet the needs of shareholder investors?

Accepted Answer

In the U.S. prior to 1930, accounting wa

Question 16

FASB lost a significant amount of independence from the SEC due to Sarbanes-Oxley's passage.

Accepted Answer

A) True 
 B)False

Question 17

Post-SOX, the accounting/auditing standards setting function has been relegated to

Accepted Answer

A)  The FASB alone 
B)  The FASB and the PCAOB 
C)  The AICPA 
D)  The IASB 
A)  The FASB alone 
B)  The FASB and the PCAOB 
C)  The AICPA 
D)  The IASB

Question 18

The American Accounting Association was originally called the American Society of Certified Public Accountants.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT true regarding the PCAOB?

Accepted Answer

A)  The PCAOB is a governmental sector regulatory body. 
B)  The PCAOB is overseen by the SEC. 
C)  The PCAOB was established by the Sarbanes-Oxley Act. 
D)  The PCAOB has authority to set auditing standards. 
A)  The PCAOB is a governmental sector regulatory body. 
B)  The PCAOB is overseen by the SEC. 
C)  The PCAOB was established by the Sarbanes-Oxley Act. 
D)  The PCAOB has authority to set auditing standards.

Question 20

Which of the following was an accomplishment of the American Association of Public Accountants?

Accepted Answer

A)  The passage of a law in 1896 that created the professional designation of "Certified Public Accountant" 
B)  The founding of The Journal of Accountancy in 1905 
C)  The development of a list of terms and definitions in 1915 
D)  All of the above 
A)  The passage of a law in 1896 that created the professional designation of "Certified Public Accountant" 
B)  The founding of The Journal of Accountancy in 1905 
C)  The development of a list of terms and definitions in 1915 
D)  All of the above

Which of the following characteristics does not apply to accounting practices and procedures in the U.S. prior to 1930?

Which of the following is a true statement?

Which of the following professional associations has an interest in the accounting standard-setting process?

Describe the controversy surrounding the issuance of APB Opinion No. 2, which addressed the investment tax credit? How did the APB resolve this controversy and what was the resulting effect on the board's authority?

APB Opinions were originally expected to be based on in-depth research studies.

The Securities Act of 1933 and the Securities and Exchange Act of 1934 were the first national securities legislations in the United States.

Which of the following is true regarding the Emerging Issues Task Force (EITF)?

How and why did the AICPA's role change under Sarbanes-Oxley?

How has the Government Accounting Standards Board (GASB) challenged the FASB's standard setting powers?

Most of the responsibility for establishing accounting principles has remained with the private sector rather than the SEC.

Discuss the steps in the accounting standard-setting process and explain why it may not be capable of dealing with the complex environment of the 2000s and beyond.

Compare and contrast the characteristics of the CAP, APB, and FASB.

Discuss what is meant by "the liability crisis in public accounting." How did the Federal Litigation Reform Act of 1995 address this issue?

The Journal of Accountancy was founded by the American Association of Public Accountants in 1905.

Why did accounting and reporting practices in the U.S. prior to 1930 not meet the needs of shareholder investors?

FASB lost a significant amount of independence from the SEC due to Sarbanes-Oxley's passage.

Post-SOX, the accounting/auditing standards setting function has been relegated to

The American Accounting Association was originally called the American Society of Certified Public Accountants.

Which of the following is NOT true regarding the PCAOB?

Which of the following was an accomplishment of the American Association of Public Accountants?

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

Which of the following characteristics does not apply to accounting practices and procedures in the U.S. prior to 1930?

Which of the following is a true statement?

Which of the following professional associations has an interest in the accounting standard-setting process?

Describe the controversy surrounding the issuance of APB Opinion No. 2, which addressed the investment tax credit? How did the APB resolve this controversy and what was the resulting effect on the board's authority?

APB Opinions were originally expected to be based on in-depth research studies.

The Securities Act of 1933 and the Securities and Exchange Act of 1934 were the first national securities legislations in the United States.

Which of the following is true regarding the Emerging Issues Task Force (EITF)?

How and why did the AICPA's role change under Sarbanes-Oxley?

How has the Government Accounting Standards Board (GASB) challenged the FASB's standard setting powers?

Most of the responsibility for establishing accounting principles has remained with the private sector rather than the SEC.

Discuss the steps in the accounting standard-setting process and explain why it may not be capable of dealing with the complex environment of the 2000s and beyond.

Compare and contrast the characteristics of the CAP, APB, and FASB.

Discuss what is meant by "the liability crisis in public accounting." How did the Federal Litigation Reform Act of 1995 address this issue?

The Journal of Accountancy was founded by the American Association of Public Accountants in 1905.

Why did accounting and reporting practices in the U.S. prior to 1930 not meet the needs of shareholder investors?

FASB lost a significant amount of independence from the SEC due to Sarbanes-Oxley's passage.

Post-SOX, the accounting/auditing standards setting function has been relegated to

The American Accounting Association was originally called the American Society of Certified Public Accountants.

Which of the following is NOT true regarding the PCAOB?

Which of the following was an accomplishment of the American Association of Public Accountants?

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