Question 1

What is the difference between normative and positive theory?

Accepted Answer

Normative theories explain what should be,whereas positive theories explain what is.Ideally,there should be no such distinction,because a well-developed and complete theory encompasses both what should be and what is.

Question 2

Which of the following is a source of nonauthoritative accounting guidance and literature?

Accepted Answer

A) Financial Accounting Standards Board Statements 
B) Financial Accounting Standards Board Interpretations 
C) Financial Accounting Standards Board Technical Bulletins 
D) Practices that are widely recognized and prevalent either generally or in the industry 
A) Financial Accounting Standards Board Statements 
B) Financial Accounting Standards Board Interpretations 
C) Financial Accounting Standards Board Technical Bulletins 
D) Practices that are widely recognized and prevalent either generally or in the industry D

Question 3

Which of the following bodies has the ultimate authority to issue accounting pronouncements in the United States?

Accepted Answer

A) Securities and Exchange Commission 
B) Financial Accounting Standards Board 
C) International Accounting Standards Committee 
D) Internal Revenue Service 
A) Securities and Exchange Commission 
B) Financial Accounting Standards Board 
C) International Accounting Standards Committee 
D) Internal Revenue Service A

Question 4

T he impact of accounting reports on various segments of our economic society is the definition of the concept of

Accepted Answer

A) Standard setting as apolitical process 
B) Standards overload 
C) Economic consequences 
D) The role of ethics in accounting 
A) Standard setting as apolitical process 
B) Standards overload 
C) Economic consequences 
D) The role of ethics in accounting

Question 5

Some accountants maintain that accounting standards are as much a product of political action as they are of careful logic or empirical findings.This belief is an example of the concept of

Accepted Answer

A) Standard setting as apolitical process 
B) Standards overload 
C) Economic consequences 
D) The role of ethics in accounting 
A) Standard setting as apolitical process 
B) Standards overload 
C) Economic consequences 
D) The role of ethics in accounting

Question 6

Which of the following types of pronouncements now establishes generally accepted accounting principles?

Accepted Answer

A) Statements of Concepts 
B) Statements of Financial Accounting Standards 
C) APB Opinions 
D) Accounting Standards Updates 
A) Statements of Concepts 
B) Statements of Financial Accounting Standards 
C) APB Opinions 
D) Accounting Standards Updates

Question 7

Which of the following companies was involved in an accounting failure that caused the public accounting firm Arthur Andersen to gout of business?

Accepted Answer

A) Goldman Sachs 
B) Wachovia 
C) Enron 
D) AIG 
A) Goldman Sachs 
B) Wachovia 
C) Enron 
D) AIG

Question 8

What controversy originally highlighted the need for standard setting groups to have more authority?

Accepted Answer

A) Accounting for stock options 
B) Accounting for derivatives 
C) Accounting for marketable securities 
D) Accounting for the investment tax credit 
A) Accounting for stock options 
B) Accounting for derivatives 
C) Accounting for marketable securities 
D) Accounting for the investment tax credit

Question 9

Who has been given credit or developing the double-entry system of bookkeeping?

Accepted Answer

A) Francis Wheat 
B) Fra Luca Pacioli 
C) A.C.Littleton 
D) William Paton 
A) Francis Wheat 
B) Fra Luca Pacioli 
C) A.C.Littleton 
D) William Paton

Question 10

Which of the following is a public sector accounting standard setter?

Accepted Answer

A) FASB 
B) SEC 
C) APB 
D) CAP 
A) FASB 
B) SEC 
C) APB 
D) CAP

Question 11

Considering and understanding how business decisions affect the financial statements is

Accepted Answer

A) The sole responsibility of the Securities and Exchange Commission. 
B) Provided in the auditor's report. 
C) Referred to as an economic consequence perspective. 
D) Interpreted strictly by the company's suppliers. 
A) The sole responsibility of the Securities and Exchange Commission. 
B) Provided in the auditor's report. 
C) Referred to as an economic consequence perspective. 
D) Interpreted strictly by the company's suppliers.

Question 12

Which of the following is the professional organization of university accounting professors?

Accepted Answer

A) American Accounting Association 
B) American Institute of Certified Public Accountants 
C) American Institute of Accountants 
D) Financial Executives Institute 
A) American Accounting Association 
B) American Institute of Certified Public Accountants 
C) American Institute of Accountants 
D) Financial Executives Institute

Question 13

Which of the following was not a criticism of the development of accounting standards by the Accounting Principles Board?

Accepted Answer

A) The independence of the members of the APB.The individuals serving on the board had full-time responsibilities elsewhere that might influence their views of certain issues. 
B) The structure of the board.The largest eight public accounting firms at that time)were automatically awarded one member,and there were usually five or six other public accountants on the APB. 
C) Harmonization.The accounting standards developed were dissimilar to those developed by the International Accounting Standards Committee. 
D) Response time.The emerging accounting problems were not being investigated and solved quickly enough by the part-time members. 
A) The independence of the members of the APB.The individuals serving on the board had full-time responsibilities elsewhere that might influence their views of certain issues. 
B) The structure of the board.The largest eight public accounting firms at that time)were automatically awarded one member,and there were usually five or six other public accountants on the APB. 
C) Harmonization.The accounting standards developed were dissimilar to those developed by the International Accounting Standards Committee. 
D) Response time.The emerging accounting problems were not being investigated and solved quickly enough by the part-time members.

Question 14

What is a special purpose entity and how do they work?

Accepted Answer

A special purpose entity SPE)now termed

Question 15

Which of the following committees recommended abolishing the Accounting Principles Board and replacing it with the Financial Accounting Board ?

Accepted Answer

A) Wheat 
B) Cohen 
C) Trueblood 
D) Anderson 
A) Wheat 
B) Cohen 
C) Trueblood 
D) Anderson

Question 16

Which of the following is not a consequence of the standards overload problem to small businesses?

Accepted Answer

A) If a small business omits a GAAP requirement from audited financial statements,a qualified or adverse opinion may be rendered. 
B) Small businesses do not need to keep financial records 
C) The cost of complying with GAAP requirements may cause a small business to forgo the development of other,more relevant information. 
D) Small CPA firms that audit smaller companies must keep up to date on all the same requirements as large international firms,but they cannot afford the specialists that are available on a centralized basis in the large firms. 
A) If a small business omits a GAAP requirement from audited financial statements,a qualified or adverse opinion may be rendered. 
B) Small businesses do not need to keep financial records 
C) The cost of complying with GAAP requirements may cause a small business to forgo the development of other,more relevant information. 
D) Small CPA firms that audit smaller companies must keep up to date on all the same requirements as large international firms,but they cannot afford the specialists that are available on a centralized basis in the large firms.

Question 17

Discuss the role of ethics in accounting.

Accepted Answer

Ethics are concerned with the types of b

Question 18

What historical evidence of the business operations of the private estate of Apollonius was discovered early inthe20th century?

Accepted Answer

A) The Iliad 
B) HYPERLINK "http://en.wikipedia.org/wiki/Plato" \o "Plato" Plato's HYPERLINK "http://en.wikipedia.org/wiki/The_Republic_(Plato)" \o "The Republic (Plato)" Republic 
C) The Zenon papyri 
D) Pacioli's work,Summa de Arithmetica Geometria Proportioni et Proportionalita, 
A) The Iliad 
B) HYPERLINK "http://en.wikipedia.org/wiki/Plato" \o "Plato" Plato's HYPERLINK "http://en.wikipedia.org/wiki/The_Republic_(Plato)" \o "The Republic (Plato)" Republic 
C) The Zenon papyri 
D) Pacioli's work,Summa de Arithmetica Geometria Proportioni et Proportionalita,

Question 19

Why is the development of a general theory of accounting important

Accepted Answer

The development of a general theory of a

Question 20

How did the Sarbanes-Oxley Act change the way the FASB is funded?

Accepted Answer

The Sarbanes-Oxley Act changed the way t

What is the difference between normative and positive theory?

Which of the following is a source of nonauthoritative accounting guidance and literature?

Which of the following bodies has the ultimate authority to issue accounting pronouncements in the United States?

T he impact of accounting reports on various segments of our economic society is the definition of the concept of

Some accountants maintain that accounting standards are as much a product of political action as they are of careful logic or empirical findings.This belief is an example of the concept of

Which of the following types of pronouncements now establishes generally accepted accounting principles?

Which of the following companies was involved in an accounting failure that caused the public accounting firm Arthur Andersen to gout of business?

What controversy originally highlighted the need for standard setting groups to have more authority?

Who has been given credit or developing the double-entry system of bookkeeping?

Which of the following is a public sector accounting standard setter?

Considering and understanding how business decisions affect the financial statements is

Which of the following is the professional organization of university accounting professors?

Which of the following was not a criticism of the development of accounting standards by the Accounting Principles Board?

What is a special purpose entity and how do they work?

Which of the following committees recommended abolishing the Accounting Principles Board and replacing it with the Financial Accounting Board ?

Which of the following is not a consequence of the standards overload problem to small businesses?

Discuss the role of ethics in accounting.

What historical evidence of the business operations of the private estate of Apollonius was discovered early inthe20th century?

Why is the development of a general theory of accounting important

How did the Sarbanes-Oxley Act change the way the FASB is funded?

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Income Concepts,revenue Recognition and Matching

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Working Capital

Long-Term Assets I: Property,plant,and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters

Exam 1: The Development of Accounting Theory

What is the difference between normative and positive theory?

Which of the following is a source of nonauthoritative accounting guidance and literature?

Which of the following bodies has the ultimate authority to issue accounting pronouncements in the United States?

T he impact of accounting reports on various segments of our economic society is the definition of the concept of

Some accountants maintain that accounting standards are as much a product of political action as they are of careful logic or empirical findings.This belief is an example of the concept of

Which of the following types of pronouncements now establishes generally accepted accounting principles?

Which of the following companies was involved in an accounting failure that caused the public accounting firm Arthur Andersen to gout of business?

What controversy originally highlighted the need for standard setting groups to have more authority?

Who has been given credit or developing the double-entry system of bookkeeping?

Which of the following is a public sector accounting standard setter?

Considering and understanding how business decisions affect the financial statements is

Which of the following is the professional organization of university accounting professors?

Which of the following was not a criticism of the development of accounting standards by the Accounting Principles Board?

What is a special purpose entity and how do they work?

Which of the following committees recommended abolishing the Accounting Principles Board and replacing it with the Financial Accounting Board ?

Which of the following is not a consequence of the standards overload problem to small businesses?

Discuss the role of ethics in accounting.

What historical evidence of the business operations of the private estate of Apollonius was discovered early inthe20th century?

Why is the development of a general theory of accounting important

How did the Sarbanes-Oxley Act change the way the FASB is funded?

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Income Concepts,revenue Recognition and Matching

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Working Capital

Long-Term Assets I: Property,plant,and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters