Exam 1: Environment and Theoretical Structure of Financial Accounting

The primary focus for financial accounting information is to provide information useful for:

Compute Amazon's cost of goods sold for the year.

Which of the following has the statutory authority to set accounting standards in the United States?

Elements of financial statements do not include:

What is the SEC and how is it involved with accounting standard setting?

To meet the needs of full disclosure, companies use supplemental information, including:

Ford Motor Company purchases services from suppliers on account and sells its products to distributors on short-term credit. As a result, do each of these events affect net income faster than they affect net operating cash flows?

SFAC No.5 focuses on:

Which of the following best demonstrates the full disclosure principle?

The full disclosure principle requires a balance between:

The purpose of the conceptual framework is to provide a structure and framework for a consistent set of GAAP.

The International Accounting Standards Board:

Compute the cash balance at the end of the first year for Tri Fecta.

Equity is a residual amount representing the owner's interest in the assets of the business.

Give an example of a violation of the stable monetary unit assumption. How would it affect the quality of financial statement information?

Gains or losses result, respectively, from the disposition of business assets for greater than, or less than, their book values.

How does GAAP define fair value?

Which of the following is not a provision of the Public Company Accounting Reform and Investor Protection Act of 2002?

The asset/liability approach emphasizes matching to determine what assets and liabilities should be reflected on the balance sheet.

Which of the following was the first private-sector entity that set accounting standards in the United States?