TEST BANK FOR Intermediate Accounting 3rd Edition by Elizabeth A Gordon ISBN: 978-0136946694 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!!!

,Intermediate Accounting, 3e (Gordon/Raedy/Sannella)
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Chapter 1 The Financial Reporting Environment
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1.1 Overview of Financial Reporting cn cn cn




1) The financial reporting process generates three basic financial statements
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. Answer: FALSE
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Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP/IFRS
c n



AACSB: Application of knowledge
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2) The demand for financial information is based on market participant demand
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. Answer: TRUE
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Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn


AP: GAAP/IFRS
c n



AACSB: Application of knowledge
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3) Managers of economic entities are best considered to be users of financial information
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. Answer: FALSE
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Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP/IFRS
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AACSB: Application of knowledge
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4) Managers of economic entities are best considered to be preparers of financial information
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. Answer: TRUE
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Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP/IFRS
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AACSB: Application of knowledge
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5) The Securities and Exchange Commission (SEC) regulates financial reporting for publicly trade
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d companies.
cn



Answer: TRUE c n c n



Diff: 2 cn



Objective: 1.1 IFRS/GA c n cn



AP: GAAP c n



AACSB: Application of knowledge
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6) The FASB gives the SEC authority to regulate accounting for publicly traded companies
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. Answer: FALSE
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Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP c n



AACSB: Application of knowledge
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,7) The Public Company Accounting Oversight Board (PCAOB) sets financial accounting standards an
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d oversees the audits of public companies in the United States.
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Answer: FALSE c n c n



Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP c n



AACSB: Application of knowledge
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8) Financial accounting standards influence the behavior of managers and other internal users
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. Answer: TRUE
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Diff: 2 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP/IFRS c n



AACSB: Application of knowledge
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9) Theories and procedures that evolve as a result of lobbying from various groups are examples
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of proactive factors within the legal, economic, political, and social environment.
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Answer: FALSE c n c n



Diff: 1 cn



Objective: 1.1 IFRS/GA c n cn



AP: GAAP/IFRS c n



AACSB: Application of knowledge
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10) Financial information includes information that is not governed by rules set forth by the accountin
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g standard-setting bodies.
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Answer: TRUE c n c n



Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn


AP: GAAP/IFRS c n



AACSB: Application of knowledge
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11) What is the term that describes the process of identifying, measuring, and communicating financia
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l information about an economic entity to various user groups?
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A) financial reporting cn



B) accounting standard setting cn cn



C) financial statement cn



D) financial accounting cn



Answer: D
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Diff: 2 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP/IFRS c n



AACSB: Application of knowledge
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2
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, 12) Which element of financial accounting involves identifying the individuals who demand financia
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l information?
cn



A) financial information cn



B) economic entity cn



C) user groups cn



D) legal, economic, political, and social environment
cn cn cn cn cn c



nAnswer: C c n



Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP/IFRS
c n



AACSB: Application of knowledge
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13) Which of the following is not one of the four basic financial statements?
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A) balance sheet cn



B) trial balance cn



C) cash flows statement
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D) statement of comprehensive income cn cn cn c



Answer: B
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Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP/IFRS
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AACSB: Application of knowledge
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14) Which organization is responsible for promulgating U.S. GAAP?
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A) Financial Accounting Standards Board cn cn cn



B) Public Company Accounting Oversight Board
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C) International Accounting Standards Board cn cn cn



D) Securities and Exchange Commission cn cn cn c



Answer: A
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Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP/IFRS
c n



AACSB: Application of knowledge
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15) Which organization is responsible for setting auditing standards and overseeing the audits of publi
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c companies in the United States?
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A) Financial Accounting Standards Board cn cn cn



B) Public Company Accounting Oversight Board
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C) American Institute of Certified Public Accountants
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D) Securities and Exchange Commission cn cn cn c



Answer: B
n c n



Diff: 1 cn


Objective: 1.1 IFRS/GA c n cn



AP: GAAP c n



AACSB: Application of knowledge
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